In this day and age, a credit card is almost indispensable. Owning one benefits you in countless ways, which include boosting your credit score, protecting you from scams, allowing you to spend more, and rewarding you for spending. However, not all credit cards are alike, and you should find one that best fits your lifestyle. 

There are several factors to take into account when choosing the right credit card. One crucial thing you’ll need to remember to do is compare credit card rewards. It’s also important to consider factors like interest rates, flat fees, cashback opportunities, and more. 

If you’d like to apply for a credit card but feel overwhelmed by all the options out there, this article will help answer some of your questions. In this article, we’ll go through six factors to consider when signing up for a credit card. 

#1 - Interest Rates

When you make a payment with a credit card, you’re essentially borrowing money you’ll need to pay back at a later date, usually with interest. Find a card that lets you pay the least amount of interest in the long run. 

Some cards don’t charge you interest for a set period, or if you make your repayments within a certain timeframe. While these cards might charge higher fees elsewhere, they are an option, especially if you have a steady income and regular stable spending habits. Make sure you’re confident in being able to pay off your debt, and don’t take any unnecessary risks.

#2 - Fixed Fees

Besides interest rates, credit cards also charge fixed fees, either on an annual or a monthly basis. It’s also important to look out for any unexpected fees your card might charge you. 

Often, lower fixed fees mean higher interest rates, and vice versa. You’ll need to sit down and calculate what sort of payment plan benefits you the most given your spending habits and financial situation. Especially with credit card companies advertising low or zero fixed fees for some time, make sure you check the offer isn’t too good to be true by finding out the full picture.

#3 - Rewards

Most credit cards offer rewards for certain types of purchases. As you go through your options, you’ll want to find one that offers rewards that will be useful in exchange for the sort of purchases you make anyway. 

There’s a huge range of potential programs your card provider might offer, including aeroplane tickets, discounts at certain establishments and gift cards. What purchases qualify for reward points often depends on the establishments your card provider has a partnership with. For instance, spending at specific restaurants or clothing stores might earn you points. 

#4 - Cashback Opportunities

Cashbacks are a specific sort of reward your credit card might offer. As the name suggests, cashback allows you to earn some of your money back when you make a purchase. It’s not the same, but similar to a discount. 

Credit cards will differ in the type of cashback opportunities they offer. For instance, one card might offer you 5% back on groceries and 3% back on furniture, while another might offer 4% back on gas and 2% on pharmacies. 

#5 - Credit Limit

Most credit cards include a credit limit, which is the maximum amount of money you can spend using your card in a given amount of time. Generally, most people will want to pick a card that lets you spend more money. 

How much credit limit you get depends largely on your credit history. If you’ve built up a good track record of paying your debts off on time, providers are more likely to trust you with a higher limit. On the other hand, you might be offered a lower limit if this is your first card since you won’t have much of a credit history yet. 

#6 - Customer Service

When you sign up for a credit card, you become a client of whatever financial institution issued the card. As with any provider-client relationship, it makes sense to find a company with a level of service that matches your needs. 

While you might not think you’ll ever need expert customer service with your card, you’re almost certain to run into situations where you’ll need assistance, and where a helpful provider is a lifesaver. For instance, you might want to ask about unexpected charges you discover on your card bill, or quickly cancel your card in case of loss. During times of financial worry, or stressful situations such as if you’ve been robbed, the last thing you want is to struggle to get the appropriate help, as fast as possible.

Conclusion

We’ve just listed some of the most important factors to consider when signing up for a credit card. As you go through your options, choose the card that best aligns with your lifestyle. You may also need to whip out a calculator to determine which one saves you the most money long-term. 

Of course, it’s entirely possible to own more than one credit card, and this may be the best option for you if you want to spend money as efficiently as possible. Still, it’s important to choose carefully, as signing up can sometimes take a while, and is a significant commitment.

If you don’t yet have a credit card or are searching for a new one, we hope this article will give you the push you need to do your research and make the best decision given your financial situation. 

Alright, let's dive into the plastic fantastic world of credit cards! These little rectangles can make or break your finances, so getting savvy with them is key. We're here to level up your credit card game with some killer strategies.

Buckle up for five top-tier tips and tricks that'll turn you into a credit card ninja in no time!

#1 - Master the Reward Points Hustle

Time to get those reward points working overtime! Choosing a credit card that gives back every time you swipe is like hitting the jackpot on your everyday buys – whether it's cashback, travel miles, or merchandise points.

Keep an eye out for sign-up bonuses and special category earnings—sometimes they're generous enough to fund a mini getaway or slash your holiday gift expenses.

Just remember the cardinal rule: don't spend extra just to score points. That way lies madness and a maxed-out card. Be wise, capitalise on what you'd normally buy, and watch those perks pile up!

#2 - Choose a Credit Card with the Perks You Need

Not all credit cards are created equal. It's like picking out the perfect toppings for your pizza – you’ve got to select what suits your taste. So, look for a card with benefits that match your lifestyle.

Are you always on the go? A travel rewards card can get you lounge access and free luggage check-ins.

More of a homebody? Then cashback on groceries and streaming services might be right up your alley.

Do you spend a lot on gas and groceries? In that case, the AT&T Points Plus card from Citi could be the ideal credit card for you.

The main idea is to snag that plastic that plays nice with how you live and spend, turning every swipe into value—just ensure those annual fees don't eat into the benefits pie!

#3 - Clear Your Balance Without a Sting

The trick to keeping your credit card from biting back is simple: pay off that balance like it's hot – because honestly, it is. Don't let the interest pile up; make full payments before the due date rolls around.

Think of it as defusing a ticking debt bomb each month. Automate those payments if you can; that way, you'll never miss a beat or get hit with late fees. It keeps your credit score looking shiny and reduces stress knowing you're not collecting financial dust bunnies under your fiscal bed.

Keep your debt low and your creditworthiness high—that's how you play the long game right!

#4 - Adopt the 30% Rule

Here’s a nugget of credit wisdom to chew on – keep your card balance under 30% of your credit limit. It's lovingly known as the credit utilization ratio, and it's a big deal in the eyes of lenders.

By sticking below this threshold, you show that you're not just another spendthrift and that you maintain a healthier credit score. This isn’t just for show, either; it gives you breathing room for unexpected expenses without maxing out your card.

Monitoring this ratio is like keeping an eye on your financial fuel gauge — too high and you risk stalling your credit health, too low and you might not be leveraging your available credit effectively. So, keep it balanced for smooth financial cruising!

#5 - Harness the Power of Purchase Protection

Lastly, lean in for a little-known card trick—many credit cards come strapped with purchase protection that's like a stealthy financial bodyguard. This nifty feature can protect you against theft or damage on new purchases for a spell after you've bought them.

Dropped your new phone? No sweat if it's within the policy's time frame.

Before you shop, scope out cards offering this perk and understand their coverage limits and claim processes—it varies from ninja to sensei level among issuers.

Use it wisely though; while it’s a handy backup, don't let it encourage reckless spending on items under the guise of protection.

Credit cards have become an integral part of modern-day life. From day-to-day payments like restocking the fridge, to larger purchases like furniture or holidays, they can be a convenient and helpful tool, helping you spread the cost over a number of months and build a healthy credit score.

Every month, credit card users receive a statement that outlines the balance and total amount owed, with a number of ways to repay. If your balance is cleared in full each month, you won’t have any interest to pay. Any outstanding debts will be charged interest, adding to the total balance.

If used irresponsibly, credit card debt can quickly spiral out of control, particularly if you are only paying back minimum repayments each month. If you’re credit card debts are becoming difficult to manage, it’s important to know you aren’t alone. In this guide, we look at a number of ways that you can pay down your credit card debt and regain control over your finances.

Get a clear picture of your financial situation

While it may seem overwhelming, it’s important to first understand the full depth of your financial situation.

Gather all of your credit card statements and add up how much you owe. Compare this against your monthly income and mark down what you currently repay each month, be it a minimum repayment or fixed amount, and the interest rate for each credit card you have.

You’ll then be able to get a clearer image of which of your debts are a priority and whether you are able to raise the amount you pay each month.

Choose a strategy for paying down your credit card debt

Two common strategies for paying down credit card debt are the debt avalanche method and the debt snowball method.

The snowball method

The snowball method focuses on paying the smallest balance first. Once this is repaid in full, you use the money you were paying for that debt and begin paying the next smallest balance, continuing this with each outstanding card balance

The avalanche method

The avalanche method prioritises paying off debt with the highest interest rates first, minimising the overall interest paid. While this may take a longer time to pay off your first credit card, it can help save money in the long-term by eliminating your most expensive debts first.

Consider a balance transfer credit card

Balance transfer cards are a great option if you have a good credit history and credit score. Many balance transfer cards offer introductory 0% APR offers for a set amount of time which can help pay down your credit card debt without worrying about interest during that time. Consolidating multiple credit card balances onto one card can also help simplify your monthly payments, depending on your credit limit and utilisation.

Debt consolidation

If you have multiple credit cards with varying interest rates, debt consolidation can be a viable option. This involves taking out a new loan with a lower interest rate to cover your existing credit card balances.

While consolidation can simplify your debt management, it's important to carefully compare interest rates and fees to ensure the new loan doesn't worsen your financial situation.

Seek out professional guidance

If you're struggling to manage your credit card debt on your own, consider seeking assistance from a credit counsellor or financial advisor. These professionals can provide personalised advice and help you create a tailored debt repayment plan that suits your specific circumstances.

Other ways that can help pay down your credit card debt

There are a number of additional ways you can look at to help reduce financial strain and pay down your credit card, including:

• Setting up a monthly fixed sum rather than a minimum repayment
• Dip into your savings to help reduce the overall balance
• Create and stick to a budget
• Cut back on discretionary spending
• Enter into a debt management plan

Paying down credit card debt takes time and dedication. Avoid getting discouraged if you experience setbacks or slow progress. Celebrate your achievements along the way, no matter how small, and stay focused on your long-term goals.

Remember, you are not alone in your journey to financial freedom. Taking the first step towards paying down your credit card debt can often be the hardest, but millions of people every year take back their financial control with perseverance, strategic planning and a commitment to change, achieving their credit card debt repayment goals.

Well, a BIN is the first 6 digits of a credit or debit card number. For example, if your credit card number is 1234 5678 9000 0000, then the BIN would be 1234 56. Now, these numbers have a purpose because they can identify the issuing bank, card brand, card type, card level, and country of a credit card. Now that you know what a BIN can identify, how do you use it?

1. Use A BIN Checker 

There are several online BIN checkers that can check your BIN code and give you all the information you need. Since the BIN is only information about the bank, and the rest of the numbers on the credit card are numbers for your account, you don’t need to worry about your data being breached.

Just look for a BIN database and see what comes up, and then type in your first six numbers to collect all the information you need. You can check here to find a good bank identification number search service, and start learning more about where your card came from.

2. Analyse The Numbers Yourself

If you don’t want to put information from your credit card online, then you can focus on analysing the first number yourself to find some of the information. The first digit of the BIN on your credit card shows the card issuers industry, or where the card came from. Most banking and financial cards have 4 or 5 as the first digit, so you should have that as well.

Sadly, the remaining numbers of the BIN cannot be understood yourself, and you will need to use some type of online checker.

3. Talk To Your Bank

Of course, you can go back to the bank where you have set up your account(s) and ask them for help in figuring out your BIN. The staff will be happy to help you find the information you need, and then you can continue your transactions.

What Do Bank Identification Numbers Do For You?

The BIN number is actually your first line of defence against fraud and it ensures that all of your transactions go through. The electronic payment processing system uses the BIN to help connect the merchant you are buying from, the payment processor, the issuing bank, and then the merchant’s bank. The BIN is checked and if it is verified, then the payment goes through.

The rest of the numbers on your card is your bank account number, which is then accessed to draw money out of the card and complete the transaction.

If you type in your BIN wrong whenever you are making an online transaction, then the payment can be declined because the processing system detects fraud. Nearly every single type of card has them, and they help you out every single time you make a payment. Because no card issuers have the same BIN numbers, it is very easy to tell if fraud is happening with that specific card.

The BIN Is Easy But Important

Taking the time to enter your BIN into an online checker is going to help you out because you will find everything you need within a few seconds, and then you can have more information about your bank and your card.

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1. Borrow Cash From Your Credit Card

In an emergency, you may need access to cash quickly. One way to get cash is to borrow it from your credit card. This can be a quick and easy way to get your money. However, there are some downsides to this method. First, you will likely be charged interest on the loan. Second, if you cannot repay the loan, you may damage your credit score. Consider all of your options before taking out a loan from your credit card. Bad credit loans may have higher interest rates and fees, but they can still be a good option if you need cash quickly and have few other options.

2. Pawn Your Items

If you have valuable items you no longer need, you can always sell them to a pawnshop. To pawn an item, you simply take it to a pawn shop, and they will give you a loan based on the value of the item. You then have a certain amount of time to repay the loan, and if you do not, the pawnshop will keep your item. This is a good option if you have items of value that you are willing to part with for a short period.

3. Sell Your Unwanted Items

You can sell your items online or at a local consignment shop. This is a good option if you have some items that you no longer need or want and you need cash quickly.

4. Pick Up Odd Jobs 

You can advertise your services online or in your local community, and you can often find work within a day or two. You can also control how much work you take on to decide how much money you need to earn. Pick-up jobs aren't always the most reliable source of income, but they can be a lifesaver in an emergency.

5. Access Your Retirement Account

Their retirement account is one of the most valuable assets for many people. While it can be tempting to access this money in times of need, there are several things to consider before taking this step:

1. You will likely incur heavy penalties and fees if you withdraw money from your retirement account before reaching retirement age
2. The funds you withdraw will no longer be earning interest, which can impact the overall growth of your account
3. You may be required to pay taxes on the money you withdraw, further reducing the amount of money you have available

Emergencies can happen to anyone, and when they do, have a plan to deal with the financial stress. Hopefully, you now have a few ideas of ways to get quick cash during an emergency. Remember, it's always best to start with your savings account or checking account as your first line of defence, but if those funds are unavailable, don't hesitate to try one of these methods.

Personal loans can be used to pay for personal needs like utility bills and groceries or even significant expenses like debt consolidation. In general, personal loans are pretty simple to obtain because you don't need a lot of documents to avail one. You only need residential proof, a few months' paychecks, and proof of employment. If you have all of them, you're all set to get the money you need.But when you are self-employed, you may need to go through hoops to secure a personal loan and prove you can pay it. While the application process might be more complicated, it doesn't mean it's impossible. 

Personal Loans For The Self-Employed

A personal loan for a freelancer can take different forms. For example, it can cover business expenses and still be considered a personal loan. Here's a rundown of a few types of personal loans for self-employed individuals.

Online Lenders

Most online lenders tend to work with self-employed individuals. As such, it shouldn't be too hard to get a lending company you can trust. Be sure to evaluate your good reasons to get a loan and look for a lender that provides immediate financial support quickly and safely.  Apply for a loan that suits your credit score to get the best rates available.

Business Credit Cards

If you need cash immediately, business credit cards can help you. A business card credit allows borrowers to get money to cover a business expense. On top of that, applying for one will help you build your business credit so that, in the future, you can sign up for larger loans. You'd need to provide your business details, like employer ID, estimated monthly expenses, and legal structure.

Credit Cards

If you have a good credit score, credit cards are an excellent way to borrow a small amount of money. You can take out small amounts up to the maximum limit. Plus, you can repay the balance each month to avoid hefty interests. 

Guarantor Loan

This type of loan is easier and more convenient to get, unlike other financing options. You'll need a relative or a friend who will financially back you up and will promise to pay the loan if you default. Before applying for this loan, make sure to assess its implications on the credit score and finances of the party involved. 

Payday Loans

Payday loans are developed to help borrowers in dire financial situations. However, they aren't a long-term financial solution. Generally, payday loans must be paid off during the next pay cycle and usually range between $100 to $500. 

How To Apply For A Personal Loan When You're Self-Employed

Self-employed individuals may qualify for a personal loan. However, it might require more work than usual. To start your loan application, you'll need to prove your identity first. You can do that by presenting a valid ID like a passport or driver's license.

Next, you'll need to verify your income. Generally, full-time employees provide past two years' W2s to prove their income. But self-employed individuals don't get W2s for their job. You can use some other documentation like bank statements, Schedule SE, income tax returns, and 1099s. Additionally, you should save previous years' forms because most lenders request at least two years of documentation for self-employed individuals. Contracts for multiple clients are also helpful to prove your income. You may also need to show a strong credit history. Keep in mind that credit is one of the most convincing markers of financial competency. 

How To Boost Your Chances Of Getting A Personal Loan

Your credit history and income aren't the only details lenders use to confirm your eligibility for a loan. As a self-employed applicant, you can take steps to make your loan application more attractive to lenders. Many lenders search for an emergency fund or healthy savings from self-employed borrowers. If the applicant can't show sufficient income to pay for the loan, their savings can act as a backup plan.

You must keep your debts small to even out some of the risks lenders take. Another thing lenders like to see in your application is a stable career path, specifically at least two years.

Conclusion

If you are considering a personal loan and are self-employed, you need to check your budget to find out what you can afford to spend on a monthly loan payment. You wouldn't want to get approved for a personal loan and discover that you can't manage to pay it. The next step is to compare options from various lenders, including credit unions, online lenders, and banks. By doing so, you can find a loan with the most competitive fees and terms. 

A credit card processor is a third party that connects the consumer and the bank, merchant, and credit card network. This organisation is vital in completing payments made using credit or debit cards. 

This industry is evolving and becoming more extensive than ever, making companies confused about whom they will entrust this aspect of their businesses. If you are still on the hunt for the best credit card processor, here are the things that you should consider before deciding which one to pick. 

How Much Does The Service Cost?

The first thing you should take into account is the cost of the card processor. It would be best if you considered that you are running a business and need to choose services that cost the lowest. Below are the standard fees that card processing companies will charge you.

Application Fee

The first thing you will have to pay when acquiring a card processor is the application fee. You will need to settle this fee to process your application and schedule your business for the setup. 

Setup Fee

Once you have paid the application fee, the next step for your application is to set up the card processing equipment, which will require you to pay another fee. It will cover the installation cost, like the labour and equipment of the technician. 

Monthly Statement Charges

When you start using the credit card processor to accept payments from your customers, you will need to pay the service provider a monthly statement fee. You pay a fee for the processor to mail you the statement every month. 

Gateway Access Fee

Another monthly fee charged to you is the gateway access fee. This payment is for the data transaction between the payment processor and the bank. 

Interchange Fee

Your business performance will be charged every transaction, which they call the interchange fee. 

Monthly Minimum Fee

The credit card processor will collect a minimum fee from you even if your sales are low.

Software Compatibility

After figuring out which processor works best based on your budget, the best thing you must consider is the software compatibility. Although most payment processors work well with any software, it is still best to investigate further and ensure that it is indeed compatible. Additionally, you might also want to consider other features of the card processor, like an option to accept digital wallets as payments, as it is becoming a popular payment option nowadays. 

Security Of The Process

Security is a significant concern, especially for this kind of financial transaction. No matter how small or big your business is, security should be your top priority. You must already be aware of fraud and security breaches in this kind of transaction. It is why you should be vigilant and ensure that the processor you choose can provide you with the best security and fraud prevention system. Regarding this concern, opting to acquire a card processing service from the best in class card processor can be viable. Therefore, choose the best and trustworthy names when choosing the credit card processor you will use. 

Pre-Termination Fee

Although a pre-termination fee is still a fee, it is not considered part of the card processor cost. A pre-termination fee will only come into account when you decide to stop the service before your contract matures. The fee for the early termination of your contract may vary from one service provider to the other. It is why you must figure out how much is at stake just in case.

Early termination of the contract is inevitable, especially if you are not happy and satisfied with the service provided by the card processor. Commonly, credit card processing companies charge a pre-termination fee from a couple of hundreds to thousands of dollars.

When choosing a credit card processing company, you should consider those that only charge $400 or lower. It will help you avoid paying a considerable amount of money whatever happens.

The Ease Of Use

The ease of use should be your next concern when choosing a credit card processor. It would be best if you went for a processor that is easy to understand and use. This way, you will never have to encounter any problems related to its operation along the way. Additionally, an easy-to-understand system is also easy to troubleshoot when issues arise. Plus, if your card processor is easy to use, you will never have difficulty teaching your employees how to use it. 

Taking Everything Into Account

You might find it complicated to choose which credit card processor is best for you. However, considering all the factors mentioned above, you are now well aware of what to look for in one. Use this information to help you pick the suitable processor that will help you run your business' payment system.

The dispute is about the fees charged by Visa, which have recently increased due to Brexit. Interchange fees sit at the centre of this issue. This is a small fee levied by card networks such as Visa on every transaction made using its cards, taken to cover the cost of processing the payment. 

Under 2015 EU regulation, interchange fees were capped in the bloc of 0.2% for debit card transactions and 0.3% for credit cards. At the time of introduction, the EU said that the regulation would save consumers approximately $6 billion in hidden fees. However, post-Brexit, operators in the UK are no longer bound by these rules. 

According to the Financial Times, Visa planned to up its cross border interchange fees from 0.3% to 1.5% this year. Such fees, to be paid either by Amazon directly or by sellers on its platform, would erode profit margins and lead to more costly products if passed on. 

A spokesperson for Amazon said, "The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers. These costs should be going down over time with technological advancements, but instead, they continue to stay high or even rise.

"As a result of Visa's continued high cost of payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards as of 19 January, 2022."

The online retailer also advised its customers to update their default payment.

Tens of thousands of British citizens living in the EU have received notices from their UK-based banks warning them that their accounts will be closed by the end of the year, The Times has reported.

Major banks including Lloyds, Barclays and Coutts, have sent letters British account holders living in the EU with a warning that they will no longer receive service when the UK’s EU withdrawal agreement ends at 11pm on 31 December 2020.

Several thousand Barclays customers living in France, Spain and Belgium have already been given notice that their Barclaycards will be cancelled on 16 November.

In the absence of a Brexit deal, individual UK banks will now have to decide which EU nations they want to continue to operate in. As each of the 27 member states has different rules regarding banking, it will become illegal for UK banks to provide services for customers in these states without applying for new banking licenses.

Lloyds Bank has confirmed that it will no longer operate in Germany, Ireland, Italy, Portugal, Slovakia and the Netherlands; customers in these countries will have their accounts closed on 31 December. Coutts has also confirmed that its EU customers will have to make “alternative arrangements”, and Natwest and Santander have stated that they are “considering their options”.

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Nigel Green, CEO and founder of deVere Group, slammed  the decision of banks to withdraw from EU nations and “abandon” their customers there.

“Once again, traditional banks are outrageously failing their clients who now need to take urgent steps to continue to be able to access, use, and manage their money,” Green said. “The move by these banks will be a major inconvenience to many tens of thousands of Brits living in the EU.”

“I would urge expats to now seek a financial services provider that already operates under pan-European rules,” he continued.

It is almost inconceivable for a business operating in today's non-cash society not to offer its customers the opportunity to pay with a credit card. Every company needs an electronic payment solution, which means that every company must enter into some arrangement with one or more credit card processors to effect credit card sales. Typically, under these arrangements, a merchant will agree to accept credit from its customers (cardholders) who properly present a credit card at the point of sale, subject to certain conditions, with payment to the merchant to be made by the credit card processor after the credit card processor's receipt of payment from the cardholder. Generally, all the payments by the credit card processor are indeed conditional and subject to chargebacks, fees and fines. In some instances, the credit card processor may, in its own discretion, suspend payment of any funds if an event of default has occurred (under either the processor's agreement with the merchant or the cardholder), or if the credit card processor has reason to believe that there may be fraudulent activity relating to transactions submitted to it by the merchant. Chargebacks to the merchant can result from, among other things: (a) a cardholder disputing the validity of a transaction; (b) a cardholder disputing the quality or receipt of goods or services; and (c) a copy of the sales draft was not provided upon request. It is important to recognise that these chargebacks can occur under the processing agreement even if there may be no or little evidence to support a dispute, the result of which is that the merchant's receipt of payment for credit card sales may be further delayed pending resolution of any dispute. Making matters worse, in some instances, the merchant now is left with no alternative but to expend the time and resources necessary to recover on these chargeback transactions, which in essence represent accounts not purchased by the credit card processor.

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Further complicating matters, credit card processing agreements typically authorise the processor to establish a Reserve Account “in an amount to be set up” by the credit card processor in its sole discretion, based upon, among other things, processing history and the potential risk of loss that the processor may determine from time to time. If the amount in the Merchant Account is less than the required reserves in the Reserve Account, the merchant will be obligated to pay the shortfall. The Reserve Account may also be funded from funds otherwise going to the Merchant Account without notice. In some instances, this Reserve Account can be held for the greater of 270 days after termination of the credit card processing agreement or for such longer period of time as may be consistent with the processor’s liability for credit card transactions. The processor can also unilaterally require an inspection of a merchant’s business at the merchant’s cost and expense.

Credit card sales do not always result in actual cash revenues to a merchant, and even when the merchant is paid, payment may occur significantly later than the actual underlying sale.

In short, credit card sales do not always result in actual cash revenues to a merchant, and even when the merchant is paid, payment may occur significantly later than the actual underlying sale. Here are five recommendations that a merchant should consider when trying to effectively manage credit card transactions for its business, given the necessity of credit card sales and the complexity involved:

1. Read and Understand the Processing Agreement.

 This may seem obvious, but the importance of a merchant really knowing the terms of its credit card processing agreement is crucial. For example, most credit card processing agreements provide for a maximum "Combined Estimated Monthly Volume" and "Estimated Highest Ticket/Sales Amounts" associated with every credit card facility—if the merchant exceeds these amounts, the credit card processor may hold the merchant funds pending further activity. As a result, a merchant should ensure that these terms are consistent with its projected sales; if a merchant senses that its projected credit card sales for a given month are over $100,000, for example, it should not agree to a Combined Estimated Monthly Volume of $70,000. So too, a merchant with large ticket items should ensure that the Estimated Highest Ticket/Sales Amounts work for its business sales. In addition, credit card processors impose a lien on credit card accounts; a merchant needs to make sure that the imposition of this lien does not conflict with other loan documents and lending arrangements.

2. Establish Internal Coordination.

 Successful merchants do everything that they can to stay within the "four corners" of their processing agreements to maximise the opportunity for collections (and in so doing, minimising potential chargeback claims). Establish processes and procedures associated with credit card sales consistent with the terms of processing agreements in place to maximise the recovery on all sales and provide for efficient and effective resolution of any potential dispute.

3. Be Proactive and Plan Ahead.

 Successful merchants, with knowledge of their credit card processing agreements, tend to carefully review and promptly challenge, as appropriate, (a) the imposition of fees and costs that are not otherwise provided for under the agreements, (b) the imposition of chargebacks, (c) the holdback of additional amounts in the Reserve Accounts, and (d) the timing of holdbacks within Reserve Accounts to avoid unnecessary delays in payment. In addition, successful merchants develop meaningful cash flow projections which will typically include some "reserve" for credit card sales based on prior experiences. Recognising that some sales do not result in immediate cash receipts can help a merchant effectively manage its cash flows.

4. Properly Evaluate Payment History With Various Processors.

 Monitor performance. Review chargeback and payment history with various credit card processors. Distinguish between those credit card processors that offer poor terms versus those that offer more favourable terms, and, within this analysis, how each of the credit card processors performs on its agreements. In some instances, despite tough deal terms, a credit card processor will not seek to hold back the maximum amount permitted but choose instead to hold back a reasonable amount consistent with the financial risk involved. Develop a means of evaluating reasonable behaviour amongst the processors.

5. Shop For The Best Deal.

 Negotiate the best terms possible, paying particular attention to the time in which the credit card processor may holdback money in the Reserve Account for potential chargebacks. In addition, pay attention to a credit card processor's past behaviour—sometimes it makes the most sense to work with a processor under less friendly terms that has a history of only taking holdbacks in the Reserve Account for actual credit risks (as opposed to general business risk). Credit card processing is a highly competitive industry—take advantage of the competition to cut your best deal. Of course, pay attention to the best rates as well!

Credit card sales represent a vital source of working capital for today's merchants. The ultimate choice of a credit card arrangement depends on finding a processor that both provides for reasonable terms and conditions and then demonstrates a consistent willingness to work with its merchants. Look for the right credit card processor for your company. Simply locking in the best rate may not be enough!

Denmark has moved one step closer to becoming the world's first cashless society, as the government proposes scrapping the obligation for retailers to accept cash as payment. How quickly will other countries such as the UK begin to follow suit?

Data from Worldpay, the UK’s leading payments processor, reflects a significant shift in the way British consumers are paying for goods, with High Street credit and debit card transactions rising just over 6% in 2014, following similar gains the previous year.

Londoners are responsible for the single biggest year on year rise in card spending. Transaction volumes on credit and debit cards in the Capital have risen by 9.3% in the past year. Cosmopolitan Leeds is not far behind however, with card-based payments rising by 8.9% in 2014, while Reading (8.0%), Southampton (7.9%), and Liverpool (7.7%) are also creeping towards the cashless tipping point.

Worldpay believes a migration of low value cash payments to card, alongside increasing use of contactless are pushing the UK closer to the point where cards overtake cash as the dominant payment method on the High Street. Recent data from the British Retail Consortium suggests cash use is down by 14% over the past five years across the UK.

Cash may not be quite done with yet, but it is clearly losing its appeal, particularly among the tech-savvy. Worldpay research of 2000 consumers found the majority of Brits over 45 years old still like to use cash; nearly 60 per cent of 25-to-34-year-olds would prefer to never carry cash.