Cash Back Business Credit Cards.

A typical small business needs to watch every penny. To last in the competitive business world, you need to maximize profits and just as importantly, reduce expenses. Many businesses don’t realize that they could easily be saving a percentage of their purchases with a cash back business credit card. Instead of letting bank fees eat away at your profits, your credit card can
work for you.

How can the banks offer cash back for your business?

For decades the banks have been charging high interest rates and eating away at business profits. Businesses would just sit back, hoping the bank would eventually give them
a better interest rate. Times are changing though. Today the credit card market is very competitive. A business can now choose between credit cards from nearly any
financial institution.

As the banks compete, they are offering credit cards with better perks and rewards.
If your business needs to travel a lot, you can get airline points. For a business that drives a lot, there are gas station rebate credit cards. Many larger stores even issue their own credit cards with special in store rebates. These credit cards lacked flexibility though.
So as competition in the credit card market increased, credit card issuers resorted to
offering cash back credit cards.

The banks can afford this to attain a new customer. The cash back is balanced out by interest charges and other fees. So for most people the cash back is just a savings on their bank fees. Plus these same customers might require additional financial services. The banks definitely aren’t losing much money by offering cash back.

Are cash back business credit cards just a scam?

No they are not a scam. These credit cards actually do give your business money back.
You just need to be familiar with any restrictions. Most cash back business credit cards
have a maximum annual cash back limit. Other cards have different cash back terms
based on the credit card purchase type. For example, you might get a different cash back percentage at a gas station compared to a grocery store or office supply store.
Some cash back credit cards also have a minimum spending before points can be redeemed.

To get the most out of a cash back credit card, you need to be disciplined. It is very tempting to put extra purchases on your credit card to get more cash back. Only use this strategy
if you are able to pay off the card every month. Otherwise you would just be accumulating more interest charges. If you can pay the card off every month, try to use your credit card more instead of cash or checks.

For some businesses the cash back maximum can also be a problem. A business with high operating expenses could easily reach the annual cash back limit in a very short time.
If this is the case, consider getting a different credit card to use once the limit has been reached. Some newer cash back business credit cards offer no limit on the amount of cash back
you can earn.

Before applying just read the terms and conditions of the credit card. Many cash back credit cards use phrases like ‘up to 5% cash back’. This usually means that you can only get that
cash back percentage for just one type of purchase or there is some other catch.

Despite certain card restrictions, a cash back credit card is a very good idea for your business. Your business could be saving thousands of dollars on your business expenses. Just take the time to compare different cash back business credit card offers before you apply.

By Jeremy Biberdorf , http://www.articleworld.net

Card Options For Those Under 18

With credit cards making life easier for millions of Americans, younger consumers may wonder when they too can get in on the action. However, consumers will generally have to wait until they are at least 18 until they can apply for a credit cards.

Compare Prepaid Credit CardsStill, there are options for younger people who want to enjoy the convenience of plastic before they turn 18.

Younger consumers can be added to an adult's credit card account as an authorized user. For an existing credit card account, the adult will need to contact the issuer and request to have an authorized user added. Alternately, young consumers may be able to get someone older to co-sign a credit card application for them.

The danger in both cases is that they could hurt the credit of someone who did them a favor if any delinquencies occur. Additionally, any financial missteps by the authorized credit card user could harm the young person's credit score. So they will need to be careful.

Meanwhile, some prepaid cards may allow individuals who are under 18 to apply with certain provisions. Both the Prepaid Visa RushCard and the Baby Phat Prepaid Visa RushCard, for example, have a minimum age requirement of just 13. Applicants who are between 13 and 16 years of age will need parental consent to apply.

Consumers should read the "terms and conditions" for various prepaid cards to see if they extend the opportunity to apply to those younger than 18.

If age 18 is just around the corner, consumers may want to wait and apply for a student credit card or a credit card for those with bad credit. Such a card will help them build a solid credit history through conscientious use and prompt payment of their card statements.

By Jeremy Simon

Too Soon To Ditch Cash

It seems like there are more places that accept credit cards each day. Even low-cost purchases once considered too small to be put on plastic can often be charged at places like fast food eateries and drugstores.

Compare Low Interest Credit CardsMeanwhile, technology is making it easier to pay without cash ever coming into the picture. Recent developments allows consumers to perform transactions with contactless credit cards that don't even need to be swiped. And, talk of payment information being loaded onto cell phones suggests there are incredible opportunities for what lies ahead.

All this momentum seems to indicate consumers can leave the house with a credit card and never have to even worry about putting cash in their wallets or swinging by an ATM. But some experts suggest that it is too early for consumers to ditch greenbacks altogether.

While much of the world appears to be going cashless, cash-only businesses do still exist. Patrons of these establishments will want to make sure they have some paper money on hand when they decide to purchase goods or services.

Certain businesses may feel cash is an easier way to carry out transaction. At businesses such as parking garages, cash is still king.

And, people that make their money through tips still appreciate hard currency. After all, consumers can't exactly swipe their credit card across a tip jar.

The coffee shop or local bar may be two of the places where tip jars commonly appear. Anyone who has ever left their credit card at a bar after a few too many drinks may also decide to pay for their beverages in cash.

People may choose to tip using cash outside the doors of traditional businesses as well. A street musician's hat and those familiar Salvation Army kettles are not likely to be filled with credit card receipts anytime soon.

A MasterCard poll found that almost half of those surveyed admitted to carrying less cash than they did five years before. That survey also revealed that some 60% of respondents only had $20 or less with them.

Even though cash may sometimes feel like the less modern way to do business, consumers who only carry a credit card may still wish they had another payment option from time to time.

By Jeremy Simon

Buying Your Lottery Tickets With a Credit Card?

Although consumers are seemingly able to charge an ever-increasing number of items to their plastic, there are certain purchases that may not be available with a credit card. Depending on what state you live in, a lottery ticket may be among the purchases you cannot make with credit cards.

Compare Low Interest Credit CardsIn some states, including Texas, Pennsylvania, and Wisconsin, the sale of lottery tickets on a credit card is specifically prohibited by law. As with online or casino gambling, the concern seems to be that consumers who buy lotto tickets on credit could wager more than they can afford to spend.

For states that do allow lottery tickets to be purchased with a credit card, retailers pay interchange fees on these lotto transactions as they do when any item is paid for on credit.

For example, in a February 2007 report from the New York Association of Convenience Stores, retailers noted that a portion of the lottery commission earned on lotto ticket sales is reduced by the processing fees they are charged by Visa and MasterCard when a customer pays with a credit card.

In cases where states prohibit credit cards for lottery ticket purchases, debit cards may be used. Since a debit card functions in a similar way to a check or cash, retailers may be willing to accept them for lotto ticket purchases.

However, since debit cards and credit cards often look very similar, certain lotto retailers may decide that would rather not accept plastic in any form in order to avoid any problems.

Even if your state does allow the use of credit cards for lottery ticket purchases, that doesn't mean problems never arise. For example, consider the case of an Oregon woman who bought a $1 million dollar winning lottery ticket in 2005 using the credit card of a deceased woman.

Consumers that want to buy their lottery tickets with a credit card will need to check the laws of their state along with any prohibitions listed in their cardmember agreements.

By Jeremy Simon