The recent financial crunch has caused many would be credit issuers to tighten up on approvals for those consumer applicants with less than perfect credit. Even new credit seekers who do not have poor FICO scores, but also have not had the opportunity to establish a good credit profile as of yet are being turned away and treated as high risk applicants.
The problem for people who fall into either of these categories is that they have a legitimate need to either establish or re-establish their good credit profile and raise their FICO score, however without easy access to credit card approvals their ability to accomplish this necessary task is extremely difficult. Ironically, it’s these same card issuers who would like their applicants to have established solid credit histories who will not approve them in the beginning to help them prove that they are worthy of a new card approval. This vicious credit circle affects over half of the households in American today.
A few companies have recently stepped in to fill the credit needs of this growing consumer segment and offer instant online approval credit cards for people with bad credit or no credit history at all. These credit providers will typically issue new credit cards without a credit check and regardless of the applicants past or present credit history. Some of these cards are issued as major brand logo credit cards, prepaid debit cards, secured credit cards and online catalog shopping cards which allow the card holder to purchase household and gift items from the credit grantors web based store.
One such card offered with no credit check is a new Platinum Card that boasts a huge beginning limit of $10,000 for all of its approved applicants, even those with poor credit or no history at all. As long as the applicant is at least 18 years of age and has a valid U.S. checking or savings account, the applicant will be approved. The Platinum Card also features 0 % interest on any unpaid balance and there is no employment verification required for approval. The card does require a minimal initial membership fee, however once the new member is approved, the card issues each user a whopping $2,500 bonus to use towards unpaid balances in addition to the generous starting limit of $10,000.
For consumers who are having trouble getting approved for a traditional credit card with strict income and employment requirements, this particular card for people with bad credit may be a valuable option to acquire a high limit credit card with no credit checks or employment verification.
Establishing a merchant account for your business enterprise is the wisest financial decision you will ever make for the growth, expansion and success of your business. Once you've set up a merchant account, you can accept credit and debit cards payments from your clients for your products and / or services. You can also arrange to accept online and mobile banking payments for your products and / or services.
A merchant account opens up new avenues for your business; therefore, giving your business many more opportunities to flourish. But, have you ever understood how the credit card processing system works? Have you tried to perceive the complexities of the players involved in the process and the intricacies of the system?
While it is not entirely essential for you to know the inside and outside of the card processing system because your Merchant Service Provider will do the needful for you; it is good for you to acquaint yourself with the system on a general basis.
The Participants Involved in a Card Transaction
A typical credit or debit card transaction involves the following players:
• The customer
• The merchant
• The payment gateway
• The customer's credit card issuer
• The credit card interchange
• The processor at the acquiring bank
• The merchant's acquiring bank
The Route the Money Takes from the Customer to the Merchant
Let's take an example to understand how the card processing system works.
Suppose that a customer walks into a clothing store and she finds a bag that catches her eye. She immediately proceeds to the payment counter and makes a payment of $100 towards her purchase with her cards.
The cashier at the merchant's store accepts the cards and uses a card swiping machine to set the process into motion.
• The $100 amount makes its first stop at the payment gateway where the payment is first authorized with a minor deduction in the amount.
• Now, $99 travels to the appropriate processor and after a minor deduction is submitted to the card interchange as $98.5.
• Once the transaction gets a clear at the interchange, it moves on to the issuing bank with a further deduction where the issuing bank verifies the availability of funds in the customer's credit / debit card.
If the transaction is declined, it makes its journey back to the customer from here.
• If the transaction is approved, $98 reaches the processor at the acquiring bank, just one step closer to the merchant account.
• Once authorized, $97.5 gets deposited into the merchant's account, which is now at the merchant's disposal.
(The figures and fees involved in card processing are based on the number of players in the process, merchant type, card type and risk factors)
In the present age, quite a number of payments are made electronically, especially with the extensive use of credit and debit cards and online funds transfer. Although typical card processing takes seven participants, the entire transaction amazing takes a maximum of five seconds for approval.