A Quick History of Merchants

Points To Consider In High Risk Credit Card Processing

You may fall into a category that credit card companies deem as normal or low risk account if you have a business of some sort. In getting approval for a merchant account, alternative businesses normally have a hard time. There’s nothing to be worried about when talking about high risk credit card processing since there are many companies and services that accommodate higher risk businesses and is happy to offer processing services.

You may be wondering on what types of businesses would fall in this category and at the same time, if your business is considered high risk as well. As a matter of fact, a few of the common high risk businesses are adult websites, established legal gaming, travel businesses, established non-US pharmacies, telemarketing, prepaid telephone cards, e-commerce businesses and high risk website offerings.

Almost all businesses are heavily dependent on electronic payments as it is now the nature of both online and offline shopping. Aside from that, almost all online transactions are done through credit cards. You’ll need some sort of processing ability for customers to buy your products or avail the services you’re offering if the nature of your business is done mostly online. What appears to be the issue in online transactions is that, the card isn’t presented physically to the vendor. This creates risk factors given that the internet is unpredictable. Having said that, ecommerce businesses have to depend on electronic payment processing. Additionally, this means that the transactions fees are bigger than usual.

Another issue that is quite common here is finding local banks that are willing to open up merchant account for your business. On the other hand, high risk processing could be provided by various offshore or even international merchant account providers. So long as your business meets the prerequisite, these kinds of vendors will be willing to offer facilities for high risk credit card processing.

You may even get curious to find out that there are some other benefits that come with this kind of payment processing. The end goal is to provide problem-free payment processing and when receiving payments online for high risk businesses. There are high risk payment processing services available in different parts of the world to accommodate such businesses. These providers offer facilities with high risk merchant accounts that offer different payment processing benefits plus solutions for the merchants. On the other hand, it is recommended to consult with a firm that is specializing in high risk accounts as this enables you to handle high volume of sales and at the same time, accept and process payments in different currencies.

Source: https://livethehero.com/2016/12/07/how-to-be-a-hero-to-your-employees-part-2/

How to Save Thousands on Student Loans Using a Loophole in the Federal Consolidation Program

Most graduates don’t realize until it’s too late that there is a loophole in the federal student loan consolidation program that allows borrowers to lock in an interest rate that is 0.60% lower than standard repayment rates. Each year’s graduating class has a unique opportunity to take advantage of this loophole before it closes after the 6th month following their graduation. For students in the class of 2006, November marks the last opportunity to lock in their current low interest rate before it increases.

Why consolidating during the grace period makes such an impact on savings

The reason borrowers are able to save so much by consolidating college loans during the grace period has a two-part answer. First, the interest on a college loan during its six month grace period is up to 0.60% lower than when the loan enters repayment status. Add to this the current federal student loan consolidation rate guidelines that dictate the rate of the new consolidated loan using a weighted average of the current loan’s interest rates. Once college loans are consolidated, the lower repayment rate is fixed for the entire 10 to 30 year repayment period.

How student loan consolidation helps borrowers

If you miss the deadline, there are still ways to save with student loan consolidation. One of the benefits that many people say they enjoy most about consolidating student loans, is the ability to extend the repayment term from the standard 10 year period, up to as many as 30 years. By lengthening the repayment period, monthly payments are dramatically reduced.

When payments are spread out over a longer period of time, students will pay more in interest over the lifetime of the loan. But many students say that without this option, making the monthly payments on their student loans would be a larger burden than they could shoulder.

By consolidating student loans and extending the repayment period, borrowers can keep monthly payments low during the early years of their budding career. Should they choose to do so, borrowers can contribute larger payments as their salaries increase in the future. Most lenders don’t charge any pre-payment penalties, meaning the choice about how long it will take to pay back loans is entirely up to the borrower, no matter how many years they spread out their consolidated loan.

Don’t forget to factor in opportunity costs

Though it would be ideal to have no debt at all, this simply isn’t an option for most people. New grads face a steep uphill battle. At this stage in life, graduates are juggling cash between buying homes, launching businesses, and starting a family. While a borrower could pay down their college loan in 10 years by paying $700 a month, rather than over 30 years at $258 a month, is it worth the opportunity cost?

For those earning enough to do both, the choice to pay off college loans sooner might be more beneficial. But others who are forced to make a choice about how to leverage a tight income must decide what is in line with their ultimate financial goals. Instead of being forced to save around the student loan repayment, borrowers can choose a feasible monthly repayment amount, and then determine the number of years required to repay the loan at that amount using a student loan consolidation calculator.

How to Save Even More with the PLUS Loan Consolidation Loophole

PLUS loans, once only for parents of undergraduate students, are now available for graduate students to fund their own educations as a result of the Higher Education Reconciliation Act July 1st changes. PLUS loans experienced a rate hike in July, from 6.1% to 8.5% but there is a silver lining to this cloud through a loophole in the Act.

Another one of the July 1st changes dictated that all consolidated loans would have a cap of 8.25%, a quarter of a percent lower than the rate of the PLUS loan. This means that any parent or graduate that has a PLUS loan will lower their interest rate, just by consolidating. PLUS loan borrowers can choose to extend the repayment period like any other federal student loan borrower to lower the monthly payment, but with this loophole, even if they make no changes to the 10 year repayment period, they will still save money just by consolidating.

Just as before the changes, the process of consolidating federal loans is still free and requires no credit checks and no collateral. As always, federal student loan consolidation neatly wraps up all outstanding federal loans tied together with one fixed rate. So while the rate increase made big news last July, there are still plenty of benefits and ways to save money by consolidating student loans.

Three Kinds of Personal Loans, One Might Just Be Right for You

Let us face it–some of us have lost sleep over mounting bills, high-priced commodities, and tuition increases. You wonder when things will be okay and money would not be as tight.

Sure, you would like to face your retirement years knowing you need not work because there is enough money saved in the bank. But how can that happen? What will make it happen aside from a lotto jackpot?

For some, managing their finances for long-term achievement might be the best solution. But what about the imminent problems that need immediate solutions?

If you need an extra cash just to cover up the instant money problems, it is best that you take advantage of the personal loans.

Personal loans are loans established on a borrower’s debt, credit, and earning history. In most cases, personal loans are for personal use, hence, the term “personal loans.”

Any person can avail of a personal loan without having to worry of collaterals. Hence, it is considered as one type of unsecured loans.

Generally, people who need spot cash for a new washing machine, for instance, would most likely opt for personal loans.

In earlier times, banks are the only financial institution that provides personal loans. With the growing demand for this kind of service, additional businesses, such as the supermarkets, department stores, etc., have decided to offer personal loans.

According to some statistical reports, approximately 22.1% of the “non-mortgage installment loans” are covered by personal loans. That is already a great portion in the market, considering the stiff competition within the lending industry.

Which Is Best for You?

There are three types of personal loans to choose from. Each type has its own pros and cons, with remarkable features that will fit the consumer’s needs.

It is best that you evaluate each type of personal loan before making a decision. Take a look at the basic description on each type of personal loans, and surely, you will find one that might just be right for you.

1. Balloon loan

A balloon loan is one kind of personal loan that lies on a long-term payment basis. Upon maturity, the borrower has to pay one big fee, known as the “balloon payment.”

The main point here is that the payment of the loan is “deferred” or postponed at a later date, thereby, giving the borrower the chance to save up for the finale.

In essence, balloon loans are ideal for those who have discipline in managing their finances. Since the payments are deferred until maturity, chances are, borrowers may neglect the chance of saving for the balloon payment and end up paying more than what was needed.

2. Installment loan

This type of loan is usually paid in partial amount, otherwise known as installments.

In most cases, institutions that provide this kind of personal loans are furniture shops or department stores where they offer their products on installment basis.

This type of personal loan is ideal for those who cannot afford to buy high-priced products on single disbursement.

Normally, installment loans are arranged on a fixed and determined phase. Hence, the borrower can allocate his resources based on the kind of installments his personal loan has.

3. Single payment loan

This type of personal loan is similar to that of balloon loan since the loan payment is also deferred. The only difference is that, instead of paying portions of the loan with the bigger fee upon maturity, the whole loan is payable by the time the loan has matured.

Like balloon payment, single payment loan requires discipline enabling the borrower pay the whole loan upon maturity.

Given those facts, each type of personal loans may vary noticeably based on the kind of payment options available.

Hence, it is best that before deciding on the type of personal loan that you think will work best on you, it is imperative that you check on your finances first, know where you are financially, and determine your financial life phase.

In this way, you will be able to create a feasible time line for your personal loan, enabling you to pay off your debts as stipulated on the mode of payment for your personal loan.