An e-commerce survey called The Future of Plastic Market reported that about 85% of consumers of worldwide shop online using their credit cards. In the past years, about 32% of transactions were done by issuing bank checks as payments but this percentage is expected to drop even more, to a low 14% this year. This overwhelming percentage against traditional way of shopping proves that plastic credit cards are certainly taking its place in the marketing industry.

This dramatic change in people’s lifestyle is really evident. Even when people shop at grocery stores or department stores, most often than not, people do not pay in cash but use a plastic credit card instead. Today, with the introduction of online banking, credit cards are bound to be more popular than ever before. Nowadays, people can simply pay their bills like telephone bills or electricity bills by getting online, using an ATM machine or a telephone.

Plastic Credit Cards and Your Business

If you’re in a business, even if it’s just a small company, accepting credit card payments from customers is an option worth considering. If your store only accepts cash, you might be losing a great number of potential customers and sales. Investing on a credit card terminal or a PC processing software that processes credit card transactions is truly worth the price. Merchant Services is a company that provides credit card processing equipment and services that can help boost your business. You’ll find that you’ll be increasing the number of your sales significantly just by allowing customers to pay through plastic.

However, the use of plastic credit cards can also bring trouble if certain steps are not taken effectively. Accepting credit card payments in your business transactions call for vigilance and caution. In the same way, those who are fond of using their credit cards when making purchases must also be extra careful. Identity theft and credit card fraud are prevalent and the latest addition to the list of today’s crimes.

Tips for Sellers Accepting Credit Cards

If you’re a seller, always make sure that the credit card being used as payment is true and authentic. Check that all the details of the credit card holder match, including the name and address not just the credit card number. Be especially on the look out when a customer makes a large order online and uses different credit cards to pay for the same order. Most cases of fraud that were reported also involve phony customers who requests that the goods be delivered in a different address or outside the US overnight.

If you detect anything suspicious about a certain customer, you can always take the extra time and check from the credit card company itself by making a phone inquiry about the credit card used and the credit card holder. True, taking these steps may require extra minutes of your time but it’s always better to be sure than be the victim in the end.

A super secure shopping cart software is an effective tool that is worth your investment too. Potential customers wouldn’t be scared to make online purchases in your store because they are wary about being victimized by credit card fraud. This way, your customers would feel more at ease in using their credit cards and have more confidence on your business.

Tips for Buyers

If you’re a buyer, always ensure that the website of the merchant you are buying from is secured and that the business itself is legal and authentic. When purchasing online, it would be better to buy from online stores which already has established a long time reputation in the business. Also, another way to protect yourself from online fraud is to check whether the website is a secured site. A secured website always begins with the URL https and has a padlock symbol found at the bottom of the browser. Look for these authentication marks before filling up any personal information in the online order form.

Plastic credit cards are really the trend and will stay with us for years to come. It’s best that we learn how to live with them the best way we can.

The use of business credit cards is becoming a popular choice among businesses including medium-sized companies and small enterprises. New business credit cards in particular are an effective tool in managing business expenses more efficiently. The daily spending of a company are accurately reported in their account making accounting and book keeping tasks a lot easier.

Speaking of tracking expenses, a business who owns a new business credit card is provided with a monthly report of all the expenditures made on the account. Aside from major expenses, daily purchases are also included in the report. Every little detail is accurately included in the summary of the account for more convenient checking. These reports can be printed out for reference and documentation. Regular updates about the account also allow a business to prepare their payments and submit them on time.

New Business Credit Cards

New business credit cards help newly start-up enterprises to make advance purchases from suppliers of raw materials or products without having to put down cash right away. Typically, a period of 30 days is given to business entrepreneurs to pay back their purchases. Within this time period or before the deadline, businesses are expected to repay the total purchases they owe from vendors and suppliers. This is a huge advantage since businesses don’t have to wait for a big cash to start manufacturing or selling products. They can even pay back their balances using the cash they earned from the goods that were sold during the repayment period.

Establishing a credit for the business is also made possible using corporate credit cards, small business credit cards or new business credit cards. Since all the purchases as well as the payments being made are reflected on the business’s credit report, businesses that always pay their balances on time can expect to build up their credit rating. In fact, all financial transactions conducted by a business, whether corporate or small business, are reported through the financial reporting system. Banks, lending companies, as well as the major credit unions are able to keep track of how businesses fare with regards to each of their business accounts.

Your Paydex Score

Financial reporting system uses a Paydex Score to measure the financial capability and credibility of a business. Thus, if your business is able to make regular payments on time, you can expect to receive a higher Paydex Score.

A high Paydex Score is a big plus when applying for loans or new credit. This is how lending companies decide whether they would grant a loan for a business or not. This is also a factor that affects the rate of interest that a business will be given. Lending companies are more than happy to provide loans to businesses with outstanding credit rating. Again, this emphasizes the need for businesses to keep up with their credit and in paying their bills promptly.

All in all, both corporate credit cards and small business credit cards provide these helpful features for businesses. Also, new business credit cards are another option for those who have just opened up a new business. All these benefits are in store for businesses to grab and take advantage of.

A big percentage of the marketing industry today is composed of small businesses. With this in mind, credit card companies have come up with business credit cards that cater specifically to this sector- the small businesses.

The Big Role of Small Enterprises

As increasing numbers of small enterprise owners apply for small business credit cards, credit card companies are hoping that businesses will use their credit cards not only when they are on travel but with their everyday business expenses as well. According to studies conducted by research companies, based on the current charges the use of small business credit cards will reach a total amount of $740.2 billion by the year 2010.

To encourage businesses on the use of their business credit cards, reward programs were introduced especially designed for small businesses credit card holders. There are different types of reward programs that a credit card company uses.

Using Reward Systems

One of the most common reward systems is the cash back rewards programs where cash incentives are given to credit card holders depending on how much they used their credit card for purchases. For example, if they were able to spend $1,000 on their credit card, they can get 5% of this total amount as their cash back reward. Thus, the more they spend on their business credit card, the more cash back incentives they will get on their account. These incentives can in turn be used to make more purchases or to pay certain bills. The amount of cash back will depend on the how much the credit card company offers. Some credit card company gives 5% cash back while others may offer even more.

Discount promos are also a favorite reward that credit card companies use. Business owners love the fact that they can get office supplies, mailing services, or shipping services at a discounted rate. This allows them to save significantly on business expenses. Travel privileges are also part of the rewards that credit cards for small businesses offer. Just like cash back reward, by making more purchases using their small business credit card, they earn more points and more chances of getting free travel tickets for free.

Special Features

Aside from incentives, credit card companies also strive to enhance the features of their services. For instance, Discover gives their small business credit card holders the option to purchase checkbooks. Checkbooks can be used to buy from merchants that do not accept business credit cards. To offer extended support for their clients, American Express provides business resource databases designed to help business owners come up with good managerial decisions especially when confronted by problems in the business.

Today, more and more owners of small enterprises see the advantages that small business credit cards can do for their business. As credit card companies strive to give more benefits and more enhanced features, it can be expected that small businesses will be encouraged not only to obtain a business credit card but to use their small business credit card in all their spending.

Choosing the right credit card is important whether it’s a personal credit card or a business credit card. Comparing the rates and charges that each credit card company have to offer will help you come up with a decision on which credit card you should apply for.Most business credit cards require an annual fee from its credit card holders. The annual fee is just like a membership fee which members have to pay each year in order to activate the membership of their credit cards. However, there are credit card companies who waive the annual fee to attract more clients.

No Annual Fee Credit Cards - What Counselors Say

Financial counselors from different credit counseling agencies do recommend credit cards which have no annual fee. These counselors are usually associated with banks and credit card companies and they do know the different rates when it comes to credit cards. If you ask any counselor, you’ll probably be told that it is to your advantage if you choose a credit card that doesn’t require annual fees. But you will also likely be advised that there are other rates that go with a credit card. Aside from the annual fee, the Annual Percentage Rates or APR must also be taken into consideration.

What Other Charges?

For instance, a credit card may offer zero annual charge. But what about the APR? How much interest rate will you be paying for the balances you incur each month? Some credit card companies do charge higher APR even though there’s no annual fee involved. Thus, even if you do save a significant amount from the free annual fee, you may be paying for a higher rate of interest every time. This is why it is important to consider all the rates that a credit card offers before deciding to sign up for a particular bank. The annual fee, Annual Percentage Rate, as well as the penalty charges should all be put into careful consideration.

Examine All Charges

To be sure that you’ll be getting reasonable rates on all the charges, examine carefully the terms and conditions that are stated on the credit card’s agreement form. This can be found online from the credit card company’s websites. Checking out each of the credit card’s websites can give you a better understanding on what terms are really being offered.

Don’t just focus on the introductory rates or promotions being offered for new customers. There might be hidden rates or vague charges which can only be found in the actual contract. Make sure that you read all the obligations you will have if you’ll be approved by a credit card company.There are also websites that give reviews about various business credit cards that are available in the market. Browsing these websites will help you compare different credit cards and their features with one another. Don’t rush signing up for an application online even though it’s so easy to do so. If you’re confused about which credit card company is the best, you may also consult reputable credit counselors.

Yes, it is possible to find a business credit card with no annual fee and at the same offers reasonable rates of APR and other charges. All you have to do is look patiently in order to find the best business credit cards in the market.

I look at business credit cards like this. They are a great way to start the process of obtaining credit for your business and they are good for small purchases.

I know a lot of people use them as the sole means of financing their business. First let me tell you thats a really bad idea. There are many financial vehicles available these days to help you to obtain credit for your business. For instance:

• SBA Loans - govt backed loans. The most common are the SBA 7A & 504. They also have the 8A which is for minorities
• Equipment Leasing - these companies finance the purchase of equipment only. They have a variety of programs for businesses at all levels. So whether you are established or a startup or good or bad credit, they probably have a lease for you.
• Factoring & Purchase Order financing - I need to do some more research to find reputable companies, but basically these types of companies use your accts rcv or purchase orders to provide a form of secured financing.

A credit card should be used to pay merhants & vendors. Not used as the single form of financing for your business.

Whether you are a new business or an established business. Its extremely important to start building your businesses credit as soon as possilbe. As your business grows, it will start building its own credit report, in the same way you build your business credit .

There are many ways that you can start building credit for your business . On this site we will discuss using credit cards. Using business credit cards is the quickest and easiest way to obtain credit. There are many factors to your business’ ability to obtain credit such as:

• Age of your business
• Your personal credit history
• Your industry