Making Business Budgeting Easier With Reloadable Credit Cards
Managing financial resources can require a lot of time, effort and manpower for medium to large – and even some small – businesses. Disbursing payroll and sales awards, handing out vendor incentives and rebates and managing employee travel expenses require a significant amount of management, and making sure that a company’s financial assets are being used 100% efficiently can be nearly impossible. One solution many businesses are turning to in order to make financial management less costly and less risky is the introduction of reloadable MasterCard credit cards, also known as prepaid credit cards.
What is a reloadable MasterCard?
Quite simply, a reloadable card (most often a MasterCard) is a credit card that works very similar to the way that a normal credit card does – with a few exceptions. The issuer of the credit card (i.e. the company or business that issues the card) pre-loads a specified spending amount onto the card. The employee, vendor or customer who is given the card can then use the card just as they would use a normal MasterCard, up to the amount that has been pre-loaded on the card.
Prepaid credit cards can be imprinted with company logos, brand names and even custom messages, another important feature which makes these cards ideal for businesses.
Reloadable credit cards for payroll, bonuses and sales awards
Issuing payroll via regular paper checks works in most instances, but there are plenty of ways this method of issuing compensation can become a liability, or simply just a hassle. Loading payroll amounts onto reloadable credit cards as an alternative to issuing paper checks can solve a number of common problems faced by businesses. For example: compensating employees without bank accounts, distributing payroll to remote employees and mitigating frequent lost or stolen check fees. Businesses that employ contract workers or workers without bank accounts find reloadable credit cards a simple solution. This method of issuing payment also eliminates the expenses associated with printing paper checks.
Similarly, reloadable credit cards offer an ideal solution for issuing bonuses and sales awards.
Vendor incentives, gift cards, customer rewards and rebates
Distributing funds – whether they be gift cards for employees, incentives for vendors or customer rebates – tends to be simpler and safer with reloadable credit cards. Prepaid cards can be loaded with a certain amount and given as simple cash gifts, a great solution for dispensing holiday gifts to employees. Similarly, customer rewards, vendor incentives and rebates issued in the form of a reloadable MasterCard are simpler for companies to disburse, safer to track and can help to spread company brand awareness with an imprinted company logo and message. If the company issuing the card wants to direct purchases only to certain merchants or types of purchases, the prepaid cards can be equipped with merchant code blocks which ensure that they can only be redeemable by specified merchants.
Travel expenses and disbursements
Rather than handing over a credit card with a limitless spending amount, keeping track of travel receipts or reimbursing employees for travel expenses, providing employees with reloadable credit cards provides both employees and employers with a hassle-free way of managing travel expenses. As with gift cards and vendor incentive cards, reloadable credit cards used for travel expense disbursements can be programmed to only allow purchases from certain merchant types – such as airline, food and lodging providers. With a prepaid credit card, employees do not have to keep tabs on expenses, nor does the employer need to waste resources keeping track of or reimbursing these purchases.
Maggie Segundas is a customer service rep for Dodson Group, a business supplier specializing in payment solutions based in Grand Rapids, Michigan. Learn about Dodson Group’s reloadable mastercards and merchant services.
Payday Loan Help: Getting You The Information To Succeed
Originally, the concept about the payday loan was to offer customers a short-term, high-interest loan with no credit or background checks. Customers simply write post-dated checks from their personal checking accounts to get the money and upon returning, they repay the principal plus interest and lending fees.
These loans were intended to be for emergencies but with almost no regulation. Customers could apply for and receive as much as they could muster, which frequently led them down the bankruptcy highway. Thankfully, payday loan help is offered through lenders designed specifically for this type of loan. They will consolidate the principle amounts and stretch the installments over time and help customers remove their names from derogatory credit files.
With payday loan help, customers can avoid negative actions being reported to the credit agencies. While payday loan companies do not check the credit of the applicants, they are aware when the report enters default status. The interest rates for the loans skyrocket at that point, often being higher than the principal loan amount.
This creates a continuous loop in that the individual will literally never get it paid off, and that’s when the consolidation company can help. They combine the loans together and set up payment plans that may be from two to ten months based upon the principal amount and they will immediately start working to avoid negative reporting activity.
Utilizing the services of payday loan help professionals can offer a breath of fresh air to individuals that are deep in financial problems. These types of loans are very useful when there is an emergency without any readily available funds to avert it. They do not check credit or background histories plus they make it very simple to obtain even more money than is needed.
The problem with this type of business is the fact that the customers end up in a never ending cycle. They need to pay back the money next time they get paid which leaves them with no money to get through to their next pay period. Thus, causing them to sign up for another loan and therefore the battle continues. The consolidation specialists will not only assist with the problem but they will also teach consumers how money and credit work so they will never need a payday loan again.
Experts who provide payday loan relief do so by consolidating the principal amount of the loans into one loan and set up a monthly payment plan. At this point, they will notify the payday lenders that your loans are being negotiated which can stop the harassing collection calls and negative reporting to credit agencies.
These aren’t like regular debt relief companies in that they particularly work with the consolidation of payday loans. However, they do have programs for customers that are fighting payday loan debt but do not include them in the consolidation of payday loans. The experts work to educate the consumer how money works and will teach them the basics of budgeting wisely and saving to avoid future occurrences of debt crises.
If you fall even a little behind on your payday loan debt then your ability to escape from payday trap can become impossible. Before you know it you are behind on your regular bills trying to pay off payday loans. Get the payday loan help that you need and learn more about payday loan consolidation.
Here They Go Again: Banks Hike Fees
Banks have two primary sources of revenue. One source is the spread between interest rates they pay depositors and interest rates they charge for loans or rates banks can earn by investing unloaned dollars. The second source is fees. Since we are in a low interest rate environment, the banks have thinner interest margins available to earn on loans and investments. However, the one thing the banks have more control over is fees.
A study released by Bankrate reveals that banks continue to hike up fees year after year which is a direct fleecing of their customers; expecially those customers that live paycheck to paycheck and have a higher risk of overdraft fees. Many consumers avoid using banks and checks for this reason and choose to pay in cash whenever possible. There are services available that choose to provide assistance to these customers when they need extra short-term cash.
Key Findings of Bank Fee Study
For the 11th straight year, bounced check fees have gone up. Banks are further penalizing more frequent check bouncers with even higher fees. No surprise here, ATM fees have risen more than 10 percent this year. The penalty fees for falling below your minimum balance requirements have risen almost 5 percent.
Congress is taking action to pressure banks to provide more options to customers to avoid bounced check fees. Bank of America, Wells Fargo and Chase have announced policy changes even despite this change, many consumers continue to depend on fixed cost cash advances to avoid the unexpected fees and all the embarassing moments that comes along with a bounced checks.
Here is a run down of what is in store for you when you bounce a check. First, you receive a notice in the mail or an email with the hefty charge showing up. Then, you receive the notice in the mail or a phone call from whoever you wrote the check to, asking you to make good on the check. Sometimes you have to go to the merchant in person to redeem the check with cash and to pay the fee. It is generally tough to explain your situation to just one person behind the counter and by the time you finally get the check back in your hand, everyone else who was standing in line waiting for service is well aware that you bounced that check. Sometimes, you lose your check writing privileges altogether at that merchant if this has happened several times in the past.
Nathan Randall, editor, DailyDollar Newsletter provides free daily advice on money matters plus coupons and discount codes. FYI…you can now access the DailyDollar Newsletter via iTunes podcast, YouTube video, and on Facebook and Twitter too.
Getting Personal Checks Can Be Fun And Memorable
Both businesses and people can order checks online. Anyone with a checking account is eligible. Many times the bank-provided checks don’t provide everything people want when it comes to their checks. More often than not checks online are cheaper than bank provided versions.
Special designs and patterns can show off someone’s individuality. Whether it is a popular color or a favorite cartoon character, every check written will display an individual’s interests. Businesses can use these types of personalized checks to give themselves a far more professional appearance to both customers and vendors alike. It’s just one method to set a person or individual apart from the rest.
Checks continue to be an important part in the financial system. They provide a record of what money was given to what company or individual. In many instances they’re a better choice than debit or credit cards or even cash. Because of their necessity, many people have chosen to order checks online rather than choosing the bank issued variety.
People who choose to order personal checks online have an even larger selection than the bank can offer. It is possible to get plain checks, checks with duplicates, and even personalized patterns and styles. With only some bank and personal information, like the account and routing numbers, an online order could be made. It does not take much time and the checks can be reordered when the supply finishes.
The good thing about the ability to order checks online is that it can be done at any time. Banks are just open during business hours which makes it difficult for some to request checks. Online stores are available at all times. It is far more convenient for most people to place an order once they have time, not when the bank is open.
After placing an order, it can take a little time to receive the checks in the mail. This is the same with an online order as well as visiting the bank to make the request. The amount of time it takes depends upon the financial institution and the company where the checks are manufactured. Most people receive their checks in a few short weeks.
There are so many reasons to order checks online. Convenience is just one of the many benefits to choosing this method. An order can be placed anytime with the right information. Instead of just being stuck with the cost of checks according to the bank, there are a number of websites to pick from and a person can look around to get the best deal.
One of the other reasons to place an order on the internet is the variety available, such as side tear personal checks. Some checks come in different colors and also the print may come in different fonts. You can find characters and themes to pick from. Rather than just being another check, these stick out in the crowd and become more of a statement and expression of individuality. In some cases, these checks may even make people smile.
I don’t know about you, but I love to personalize things. One of my favorite things to personalize is checks! Did you know you can still order personal checks online? Getting cheap personal checks is easy and fun. There are so many awesome designs out there that you can do just about anything! To order checks online click here.
A Fair Fee That Banks Should Impose On Us Immediately
Based on the rapid retreat by banks to charge us for using our debit cards, there’s no doubt that American consumers are unified in their outrage. Case closed. However, there is a fair fee that banks should impose on us immediately to help recoup the massive revenue loss from the government regulations which capped off swipe fees.
Shut the front door! Yes, we focus so much on saving money for consumers and now we actually have a proposal for banks to consider which could cost consumers some money. Read on because we think you will find it fair too.
Remember When?
Banks introduced online bill pay back in the mid-90s. Back then, it cost a monthly fee. Something like $4.95 if I recall correctly. I for one was happy to pay the fee to avoid the hassle of writing checks, addressing and licking envelopes and buying stamps. As banking became more competitive, the online bill pay fees went away and banks began packaging it as a free service. The same holds true today.
What Is The Float?
Although you may not realize it, banks earn revenue from your money when you use online bill pay; even though you do not pay a monthly fee. Banks earn money on the float. The float is a period of time in between your money leaving your bank account and being deposited into the payee’s account. There is usually a 2 to 3 day window when your bill is in process of being paid and during that time the banks earn interest off your money. That is the float and when you aggregate billions of dollars of bills being paid the interest income becomes a huge figure.
2 Ways That Online Bill Pay Works
There are two ways the banks magically pay your bills. The first type is electronic payments. These are set up with larger payees like mortgage companies and large retailers. Electronic payments can be done instantly. But you will notice that when you set up a bill to be paid, you rarely can choose the current day or even the next day for delivery. Usually you have to schedule between 3 to 5 days. That delay is the float and is how the banks create a huge amount of interest revenue from investing those funds overnight.
The second way bills are paid by banks’ online bill pay service is snail mail. For payments meant for small shops like your dentist or even your Uncle Joe, bills are paid via paper check. Again, during that window of time that the funds are withdrawn from your account and mailed and until the recipient cashes that check, the bank is earning interest on your money.
Postage Stamp Prices Rising Again January 22, 2012
If you haven’t heard, the post office is raising stamp prices, again. The endless rise in stamp prices makes online bill pay even more attractive. 45 cents per stamp times 10 bills per month plus the cost of envelopes and checks adds up over the course of a year.
Banks Should Charge For Online Bill Pay
Banks have to make a profit. The government meddling with swipe fees has caused banks to lose over one billion dollars in revenue. So here is my proposal for banks. Online bill pay is a valuable service and it takes a big operation to get all those bills paid on time. For bills that are paid electronically I think banks should keep fee free. However, for bills that require snail mail I am more than willing to pay my bank the cost of postage. Banks incur big expense buying paper checks, ink toner, envelopes, postage and all the equipment to print and stuff envelopes. Why give this away for free?
Small businesses that use their bank’s online bill pay rack up even more monthly bills than you or I do with our personal affairs. Paying bills is a normal, expected cost of doing business so why shouldn’t it be paid for by the customer? For highly profitable bank customers, the banks can create packages that include totally free online bill pay if certain minimum balance or other criteria are met. But for everyone else, it’s time they pay their fair share.
Paying more fees is rarely popular just like paying more taxes would be. But the fact is that there are costs to run a bill pay operation just like it costs money to run our government. Everyone has to pay their fair share for things to operate normally. So go ahead Mr. Banker, sock it to me. Hit me up for 40 cents for each snail mail bill pay I process. You are still doing me a huge favor by purchasing and printing the paper check, purchasing and printing the envelope and licking it for me! And most of all, you always manage to get those payments delivered on time. Don’t you dare charge me for electronic bill payments to my credit card with another bank or retail store, but when I send $15 to my Aunt Sally, charge me. I won’t complain, I promise.
Nathan Randall, editor, Daily Dollar Newsletter provides free daily advice on money matters plus coupons and discount codes. FYI…you can now access the Daily Dollar Newsletter via iTunes podcast, YouTube video, and on Facebook and Twitter too.