Monthly Archives: October 2016

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Understanding more about Credit Card Processing

Thousands of credit cards are processed across the world on a daily basis. A credit card processor can be described as a third player which ensures that money flows smoothly from the credit card holder’s account to the merchant’s bank account. The key players in any credit card transaction are the cardholder, the merchant, the merchant bank (acquiring bank), the cardholder bank (issuing bank) and the card associations.

The cardholder is the buyer who uses the credit card that has been issued to them by their respective banks for various purchases. The merchant is the owner of the business. This business owner has systems that facilitate payment through client credit cards. The acquiring bank is the bank of the merchant that offers services for credit card payment. The merchant bank issues the business person with the means to conduct sales through credit cards. Another name for the issuing bank is the cardholder bank. Its role is to provide customer with the credit cards. The cardholder banks have special agreements with card associations. The link between the merchant bank and the cardholder bank is the card association. The role of the card associations to see to the correct transfer of funds between the merchant and cardholder banks.

Before the trade can be sanctioned by the merchant; the credit card has to be authorized first. The merchant receives the credit card from the buyer (cardholder) and then uses the provided software and equipment to obtain a green light from the acquirer bank. In the authorization process, the merchant receives a code of authorization from the acquirer bank which is an indication that there is sufficient credit available for the transaction. In case more than one purchase was authorized by the acquirer bank, the seller then sends the list of the previously approved transactions to the acquirer bank in a batch.

During the process of clearing, the batch is sent in request for payment from the issuing bank via a card network. The funds are then transferred to the merchant bank by the card association. The interchange fees are deducted from the money by the merchant bank before it is transferred to the merchant/ business person. According to their terms of trade, the interchange fee is divided between the card associations and the merchant bank.

The funding stage marks the last process of card processing. Before finally transferring the money to the merchant, the merchant bank charges its discount fees. The figure that is finally sent to the merchant as payment is, therefore, less than the initial price for the goods and services as the interchange charges and discount fees are subtracted from it. This process marks the completion of the credit card processing with all the key players of the transaction satisfied.

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Planning You Child’s Post Secondary Education with RESP

Not every parent in North American can make their children take post secondary education because it is very expensive. If you want to let your children go to college someday, you should make plans for it because you might find yourself with a large financial burden if you don’t. This will only happen if the family has some financial security of some sort.

If your children want to go to college then it can be possible through RESP or Registers Education Savings Plan. The RESP is a savings plan that can grow tax free and is something that is sponsored by the government. When the plan money matures, it is considered income for the student and can be taxed.

This savings plan is administered by private companies and persons who will collect the contributions and invest them accordingly. The yearly contributions per student can reach up to $4,000 per student and the lifetime limit is $42,000 without any tax implications. Students sometimes get more than one plan but the limit is strictly per student.

Before reaching his 17th birthday, the government adds 20% to the amount that is contributed to the RESP. This is called the CESG or the Canada Education Savings Grant and any amounts paid in are not included in the annual limit for tax purposes.

The maximum amount that any student can receive from the CESG is $7,200 over the plan’s lifetime. Any unclaimed contribution of the CESG each year will accumulate and $800 can be paid which was not previously claimed. All money added by the CESG to the RESP should be returned to the government in the event that the money is not used for educational purposes.

If you are a resident of Canada and have a Social Insurance Number or SIN, you can apply for the RESP. This SIN must be provided to the promoter at the plan inception, and the one making the contributions are also required to provide their SIN.

The three different RESP plans are given below.

The non-family plans allows other people to contribute to the plan without limit, but there can only be one beneficiary.

The family plan can have one or more beneficiaries as long as they are blood relatives or adopted by the person making the contribution. There are no restrictions as to when and how much is paid.

The group plans have requirements of the amount that is paid and when it should be paid and are usually offered by foundations. The students are divided into age groups and they are equally given a share of the contributions. Because of the complicated rules attached to the group plan, there is a need to do a thorough research together with the plan provider before committing to this plan.

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The Benefits And Features Of Consolidated Payday Loans

In many instances, as humans we may have difficulties in solving some of our financial issues that may require immediate repayment. Managing to find places where we can easily borrow money, can be a hustle depending on the lending institution that we wish to borrow from since many procedures are involved with high interest rates. Finding different remedies at such a stage is very difficult since loans require some duration to be fully processed. Consolidated payday loans help us at times which we require support in terms of finances.

These loans help different people who may be in fixed financial positions to sort out needs or to repay different debts which may require repayments that are immediate. These loans can aid you if you have different problems with paying some monthly expenses, if you possess a credit card which has a very low interest, if you own some level of equity back at your house and if you have a bad debt with bad credit worthiness. Some situations require us to resort to relying on the consolidated payday loans. These loans not only help us to sort different debts, but also help us to solve some of our financial issues.

The main benefits of consolidated payday loans include; reduces stress, involves single payment, increases your credit score, lower interest rates and used to stop collection calls. These loans can aid to improve your financial score. The ability to consolidate debts into specific places as we stay on top of our payments can help us to rebuild our worthiness when it comes to credit. Consolidated payday loans have low interest rates which allow various borrowers to have less burden when in the process of borrowing cash because the interest rates may be low when we compare the interest rates of various lending institutions. These payday loans are very useful in reducing our stress levels since they can be very helpful in clearing some of your debts that can easily lead to stress. The consolidated payday loans will help you to clear different debts that may be weighing you down and help you to focus on other important things. The consolidated payday loans are helpful to us because borrowers will not stress about collection calls that can end up stressing them.

Consolidated payday loans are very important because they help us to repay different loans that may be stressing us. These loans can assist us when we are in fixed financial situations that may reduce our focus towards improving our finances. Consolidated payday loans have proved beneficial to many debtors who want to easily finish some of their debts which they are able to pile up within a period of time.

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Overwhelmed by the Complexity of Services? This May Help

The Importance of Filling Tax Returns Online

Technology has the capability to influence the doing of things It can make a procedure take less time and reduce its complexity. Procedures that have been made digital are much effective than procedures conducted in analog manner. Technology has changed the way financial transaction and accounting is done. It is now far much simple to implement the financial, legal requirements such as tax obligations. It is simple to fill tax returns online than manually. It allows one to do the tax self assessment. It helps the individual fulfill the state law with a lot of ease. One is saved the need to follow queues in the tax collection offices to just file the returns. It also gives you a good chance to fill in the benefits and exemptions that you are entitled to easily.

Getting started the process needs you to access a smartphone or a desktop. The internet connection is also required to allow you the website of the tax collectors. You need to provide your financial details to open an account with them. The tax man will be transacting with you on this account. Details that you must remember are the identity and the password. Those details will be vital to you when you want to log into the website of the tax authority to file your returns. For those who already have the account, they simply need to log into the system using the details.

All your tax information such as receipts and last year return copy needs to be available. Your account already have some of your tax information. Returning tax online also gives you the advantage of knowing the benefits and credits that you may be eligible for. These may range from child to family benefits. You can then send your tax returns using certified software which makes it fast and secure. The returns can be sent electronically using the software or by mail to the taxman offices. You will have completed the process of submitting payments or receiving the refunds.

You need to ensure that you file the returns at the right time. This will go a long way in ensuring that you are tax compliant. There exist no good reason as to why you should wait until the last minute. Tax returns should be made by every person who is earning. You should file your returns even if some f the receipts are missing. Filling the returns ai also vital for those who are not earning. This can help them access to state benefits. Filing the tax returns online give the chance to remain updated by the tax authorities. Such updates may involve new tax laws and benefits that a person might be eligible for.

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UNDERSTANDING HOW CREDIT CARDS REALLY WORK.

Commonly referred to as “plastics”, credit cards are now quickly replacing cash as the most preferred method of payment by customers. These cards are small square-shaped cards that fit nicely in your wallet, and can be used for electronic transactions through the use of a credit card reader. Credit cards allow you to pay for your purchases by charging them to your account, then you can just pay the same amount later directly to the bank who had issued you the card.

If you own a debit card, then you have a general idea of what credit cards look like too, though they function in totally different ways.

The one thing that these cards both have is the black magnetic strip usually located at the back. This black stripe carries all the account holder’s important information such as account number, address, zip code, name, account balance and many more. So it is of utmost importance that no damage should happen to this black line since the user will have difficulty obtaining important account information; worse, would need to have the credit card replaced.

When credit cards are used to pay for goods, the owner will need to swipe their charge card through an electronic terminal which reads the bank details and information contained in the magstripe. These electronic terminals are what they call credit card readers.

These card readers are used in order to gain access to the information contained in the black strip, which is then sent to the bank’s computer to check if it is still an existing or active account and if it has enough funds to cover the amount to be charged. Verification of the account and confirmation of transaction from the card reader to the bank’s computer will only take a minute or two – just enough time to confirm that the account is valid and has sufficient amount remaining to accept the amount to be charged.

Cashless mode of payment is the norm now, as more and more consumers are joining the trend by paying with their credit cards instead of bringing cash along with them. Businesses also know that they need to innovate and go with the trend by providing customers a means to pay using their charge cards, and not just sticking to cash all the time. Credit cards give consumers the ability to pay for their purchases even through online shopping, especially nowadays that businesses and companies have put up their own e-commerce websites to cater to a wider clientele.

Used wisely and carefully, credit cards can be a great tool in building your credit as well having something to rely on in case of emergencies.