Are You at Risk by Not Using Credit Card Authorization Forms?

The credit card authorization form is used to process purchases made when the card holder does not present the payment card physically at the point of sale. The holder may take advantage of making purchases even if he or she does is not in physical possession of the card while making the purchase. This document is a useful substitute for the credit card as it obtains all the relevant information from the card holder and protects the seller by documenting the cardholder’s authorization. The seller will generally expedite the purchase after receiving the information requested in the form.

An authorization form needs to be completed by the user to verify funds and make sure that the user has sufficient funds available to cover the transaction. Credit card authorization is the start of the settlement process for obtaining approval for all purchases. In order to process the request for authorization, a few simple steps need to be followed to protect both buyer and seller.

When a credit card is swiped at a point of sale terminal, all information relating to that card is obtained immediately. Following this, the authorization form request containing information about the card as well as the transaction is sent to the processing company. Another method of sending this information is by sending the credit card and payment information through the seller’s payment device manually, which creates risk for both buyer and seller; a risk that can be mitigated by using a signed authorization form.

Whichever method is used, the authorization request is then transferred to the concerned processor company who then forwards it to the issuing bank. The system then verifies the validity of the account, expiration date and amount of money in the account before proceeding further. The concerned bank then sends out approval or declination along with an authorization number that is encrypted and forwards it over the Internet to the agency’s Internet application. If the transaction is approved the funds needed are set aside and the whole process passes off smoothly with the issuing bank depositing the funds with the seller.

What does the authorization form contain?

Typically, the form contains all the relevant information required to process the card holder’s request to purchase an item through using a credit card. Most companies request customers to fill out an authorization form and then fax it to their address, before completing the transaction. It should contain billing information, credit card information, the address for the card holder, and a security code to prevent fraud. The security code is a 3 or 4 digit code, usually at the back of the card. If someone fraudulently obtains your number, the security code ensures that the person also is in possession of the credit card, thus minimizing the risk of credit card fraud.

The authorization form, once filled out, enables collection of information by the credit card company for use in case of any disputes. It also allows the user to sign and enter into a transaction before receiving the service requested.

The form clearly spells out the charges to the user along with terms of service. The authorization form enables the seller to obtain the purchaser’s signature and although this is not the same as having the card present for the transaction, it does provide a reduction in risk and fees.

Does Using Credit As Additional Income Cause Financial Devastation?

It seems society’s viewpoint on the use of credit has changed from those of generations past. Back then people would obtain a line of credit or overdraft protection for emergency situations only. Credit was used for more big-ticket items like purchasing a home. When it came to buying products it was cash sales in the stores, and occasionally some merchants would accept checks from loyal customers. The world ran on currency, which meant price was king, not what the monthly payment would be. Here is why I believe using credit like additional income causes so many with financial devastation…

I need to mention that in these times salary and hourly wages doesn’t always meet the ability of survival. Credit becomes a catch 22 for those families because they can’t afford the basics. Using a credit card to buy groceries this week means they eat, however continually doing so with minimum payments and interest might not help down the road. The imbalance in the economy between pay and inflation has left the average family in a hundred-thousand dollars of debt. I think the idea of providing these working poor families with credit they can’t afford to payback, instead of jobs with proper wages, is simply the governments way of putting temporary brakes on anther depression. The marketing twist making people feel better about using their credit cards for groceries is air miles, points, and cash-back great justification saving face for the poor! There is another group of people I would like to mention when it comes to this topic of credit…

These are the folks who live totally out their means, having beer budgets with champagne tastes. These individuals who look like their rich, but in reality many of them have or are maxing out their credit. They’re the ones who have trouble even making payments, nothing in the bank just trying to get more credit. Stores love these types of buyers, marketing to them with gimmicks like no money down, don’t pay anything for 36 months, and zero interest. Maybe as an example they can only really afford a $500 television, with credit they can buy a $3000 one, and the payment would only be whatever. People are much more educated than before, so knowing in the case of bankruptcy they won’t lose that $3000 television, and leasing a fancy car is not an asset so the bank can’t touch that either.

The government needs and likes tax dollars from corporations, in order to keep them flowing providing credit to consumers to purchase keeps them coming in. The beauty for the businesses is either credit cards or financing is the modern cash business, they’re paid right away. As far as the finance companies who extend the consumer credit, they’ve already calculated the default percentage, charging the merchant interest accordingly. Providing credit also takes away success from small business, because they can’t compete, more of risk factor without as much volume, and many end-up paying the finance companies higher interest because less volume. A company like Ford will pay lower rates than an independent car dealer.

In conclusion I believe people are using credit as additional income because they’ve lost hope of the future. Most can’t afford to save-up money for what they want like the past generation, so the expression you only live once has become a way of life. Perhaps people can go back living within their means, only if they prioritize what is and isn’t essential in their lives. I’ve started doing this in my life a few years ago using small steps. As instances like not needing every cable channel saving $700/year, or buying a used car for cash, getting one way insurance, saving approximately in yearly payments $3500/year. Just those two things alone put $4200 extra in my pocket yearly. The point is I don’t feel we need to use credit as often if we stay within the bounds of our incomes!

Why Owners Prefer To Use The Best Corporate Credit Cards

It is important for business owners to be aware about their expenses. Not to mention, they need to make sure that they can create accurate reports about their financial status. However, there are cases when doing these tasks can be quite difficult since you may end up using your personal finances for your business. This is why more and more owners prefer to use the best corporate credit cards. Apart from that, below are also some of the reasons why owners prefer using such cards for their business.

To improve cash flow

One of the main reasons why business owners make use of corporate credit cards is to improve their cash flow. Of course, in order to gain better profits, it is important to look for ways that can help you manage your expenses. Luckily, credit cards for businesses that are offered by financial institutions can provide you with lower or even free interest rates. Because of this, you do not need to pay for extra charges when purchasing items your employees need.

To make billing and payments flexible

The next reason why owners prefer using such credit cards is to make billing and payments flexible. There are cases when employees need to purchase certain items for your business. However, not all employees have cash on hand. As a result, purchasing can be impossible. By making use of credit cards, you can purchase items easily without using cash which can make billing and payments better for your business.

To manage your business accounts properly

Another reason why owners prefer using credit cards is to manage their business accounts properly. When running a business, owners need to deal with numerous types of financial tasks. Sadly, some owners cannot remember all these transactions which can affect their financial reports. Fortunately, credit card providers can offer owners with reports about their transactions efficiently.

To gain access to numerous features

When using corporate credit cards, business owners can also gain access to numerous features. These include SMS alerts, spend security controls as well as simplified procedures in purchasing. With these features, owners are rest assured that can they purchase and deal with other expenses more effectively which can help reduce their tasks at work.

To attain wonderful perks

Finally, making use of corporate cards can also provide owners with wonderful perks. For instance, when planning business travels, some financial institutions can provide discounts or promos. Apart from that, some financial institutions also offer special deals on restaurants. Because of this, you can make business meetings more appealing.

How To Send Paypal Payments Using Your Credit Card

Paypal, owned by eBay is a great way of sending payments for eBay items or any items bought over the internet. Within minutes, you can send payments across the world. However, Paypal also has it’s fair share of critics and members who disagree with their policies and agreements, especially when a decision goes against the complaining member or they lose out to online fraud.

Using paypal, you can choose to pay for your item or service in a number of ways. The most popular method is by using any balance you have within your paypal account. This is built up, by other members sending you payment for eBay or other items. Alternatively, once you have registered your bank account and any debit or credit cards with paypal you can choose to pay for items using these options.

The safest way for members to pay for items with Paypal, is by registering a credit card and funding all payments though this. Because, paying though credit card normally offers an extra level of protection should things go wrong.

In most countries, credit card companies are partially or full liable should things go wrong with a transaction and will actively get involved to resolve any issues or do a complete chargeback, placing the funds back on your account. Even if you enter into a dispute with paypal and lose, you can still get your credit card company involved to dispute any transaction.

However, paypal doesn’t make it easy for you to fund a payment using a credit card if you already have a balance in the account. Payments are normally funded out of the paypal balance first, and then either from a backup source (bank account or credit card) if the funds are not enough to pay for the complete purchase.

To pay for an entire purchase, via your credit card you need to clear any balance. You can do this by sending the payment to a non existing email address, or to an email address you own but is not registered with paypal.

As soon as you do this your balance will be empty, & you can now choose a funding option such as credit card. In the meantime, paypal will have sent an email to the non existing or alterative email address telling them of they have a payment waiting and how to open a paypal account.

Now your payment is complete, all you need to do is log back into your paypal account, find the transaction to the non existing email address and click on cancel. Your payment will be reversed back into your account, because it will have gone unclaimed.

Top 4 Dangers of Cash Advances Using a Credit Card

Taking a cash advance make seem a perfect solution if you are faced with a financial emergency and need quick cash.

Most people sign up for this short term loan as it offers a quick fix to their financial dilemma.

One of the important things that you need to remember is that this perfect solution comes with a high price. You can land in serious financial trouble if you rely on cash advances.

Danger 1: Exorbitant fees

Cash advances are promoted by credit card companies to get quick access to cash in emergency situations. These transactions are often accompanied by convenience fees. In addition to this fee, you may also have to pay ATM fees when you withdraw cash from an out of network unit. Every aspect of the process has some fees associated with it and this makes it costly.

Danger 2: Interest rates

The high interest rates that apply are another danger of cash advances using a credit card. The annual percentage rate (APR) is always higher and is usually double than the percentage that is normally charged. Most consumers are not aware of the high APR. They are usually under the impression that it may be treated in the same manner as other purchases made on the credit card.

Danger 3: Lack of grace period

Cash advances do not offer a grace period unlike most credit card transactions and the interest starts accruing immediately. As soon as the process is completed the balance will increase and this can result in increased charges that exceed the original cash advance amount. This can put you in a situation where you may have to pay the advance amount earlier than other amounts owed.

Danger 4: Facilitates bad financial habits

When you start opting for cash advances in all types of emergencies, it may become too easy to develop bad financial habits. This can lead to a dependency on readily available cash and you may not set money aside for difficult situations. This can result in misuse of funds, higher interest rates and longer repayment periods. If you opt for it repeatedly, you may soon find yourself in a mountain of debt.