Both a business charge card and a business credit card could be beneficial to you, depending on your unique business needs. While these resources are very similar, they have a few things that make them different. Here are a few things to consider about charge cards vs credit cards.
Balances
One of the biggest differences between these two types of cards is in the way that balances are handled. Both of them will give you a specific credit limit to work with. With a charge card, you can charge up to your credit limit and then you will have to pay off the balance by the next month.
With a credit card, you will be able to make purchases up to your credit limit as well. The key difference with this type of card is that you can allow your balance to stay on your account for an extended period of time.
Leaving Balances
If you leave a balance on your credit card, you will simply start to accrue interest charges on the account. You will then have to make a minimum monthly payment the next month. With the charge card, if you do not pay off your balance, they are going to charge you late fees.
Tuesday, November 9, 2010
Tracking Your Business Credit Card Expenses
Since business expenses and the interest on your business credit card are tax deductible, it is important to keep track of these expenses during the year. Keeping track means more than following your balance online. If you ever receive an audit, you must be able to prove the purchases were made for business purposes and were properly recorded. Therefore, you must keep written copies of all your expenses throughout the year.
Save Receipts
The most important step to tracking your business credit card expenses is saving receipts. This includes everything from minor trips to the coffee shop for business meetings to airline tickets. Whenever you are using your business card, you must ask for a copy of your receipt. It is advantageous to use your business card for all business-related expenses. That way, you have your expenses all in one place, and you do not have to dig through any individual or personal cards in order to track any charges in question. Get business cards for any individual in your company who will be using the account and require receipts for every purchase. Put these receipts immediately into an expense file.
Record Expenses on Reports
At the end of each day, week or month, depending on your personal preference, you should enter the expenses into a ledger for your financial report. Today, this is most commonly done through programs like QuickBooks or other accounting services. If you have a software program, much of your expense report can be automated. Remember: interest on the charges is also deductible. Therefore, you must track interest payments you make to your business credit card in addition to the regular payments you make toward principal debt.
Make Extra Copies
Business owners who fail to make copies of receipts and reports run the risk of losing everything in the case of theft, computer virus or natural disaster. Even files saved on a computer are not safe. You should make hard copies and duplicates of receipts for storage in a fireproof and waterproof safe. In addition, it is wise to back up all computer files on an external hard drive. These are available for purchase for a few hundred dollars, which is tax deductible. You can also use an online data storage service if you do not have in-house servers.
Organize to Prepare for Tax Season
When it comes time to file your taxes, you will have to categorize business expenses. For example, some expenses will be deducted under "Cost of Goods Sold" while others will be capital expenses. Capitalizing expenses allows you to defer taxes until profits result from the expense. This can provide relief in the given tax year, but not all expenses can be capitalized. If you are not an accountant, it will be wise to hire one for assistance with this process. Start by dividing the receipts and expenses into categories as you see fit. Any questions should go before your accountant in order to ensure you are getting the greatest tax benefits.
Save Receipts
The most important step to tracking your business credit card expenses is saving receipts. This includes everything from minor trips to the coffee shop for business meetings to airline tickets. Whenever you are using your business card, you must ask for a copy of your receipt. It is advantageous to use your business card for all business-related expenses. That way, you have your expenses all in one place, and you do not have to dig through any individual or personal cards in order to track any charges in question. Get business cards for any individual in your company who will be using the account and require receipts for every purchase. Put these receipts immediately into an expense file.
Record Expenses on Reports
At the end of each day, week or month, depending on your personal preference, you should enter the expenses into a ledger for your financial report. Today, this is most commonly done through programs like QuickBooks or other accounting services. If you have a software program, much of your expense report can be automated. Remember: interest on the charges is also deductible. Therefore, you must track interest payments you make to your business credit card in addition to the regular payments you make toward principal debt.
Make Extra Copies
Business owners who fail to make copies of receipts and reports run the risk of losing everything in the case of theft, computer virus or natural disaster. Even files saved on a computer are not safe. You should make hard copies and duplicates of receipts for storage in a fireproof and waterproof safe. In addition, it is wise to back up all computer files on an external hard drive. These are available for purchase for a few hundred dollars, which is tax deductible. You can also use an online data storage service if you do not have in-house servers.
Organize to Prepare for Tax Season
When it comes time to file your taxes, you will have to categorize business expenses. For example, some expenses will be deducted under "Cost of Goods Sold" while others will be capital expenses. Capitalizing expenses allows you to defer taxes until profits result from the expense. This can provide relief in the given tax year, but not all expenses can be capitalized. If you are not an accountant, it will be wise to hire one for assistance with this process. Start by dividing the receipts and expenses into categories as you see fit. Any questions should go before your accountant in order to ensure you are getting the greatest tax benefits.
The Requirements for Opening a Business Credit Card
A business credit card can be issued to a small business owner in the business's name. The credit card can allow a small business owner to get loans, make payments and build credit history without putting their personal credit on the line. Another benefit of the credit card is that, should the small business fail, the business owner's personal credit history would not be affected. Applying for a business credit card can be a complicated process that does involve some risk, but business owners can avoid those problems and get the business credit card by being careful and thorough as they apply.
Since it will take a while for the business credit score to be established, business owners should wait at least a year before applying.
Business owners should also make sure they carefully check their business credit card bills and expenses. Unlike personal credit cards, business credit cards have no protections against unauthorized spending. The credit card companies also have more leeway to change the terms without warning.
Getting Started
The business owner's first step should be to establish some assets and start a business-only checking account. At first, the business owner's credit score will double as the business's credit score, but it will change as the business checking account is used more and more often. The business owner should make sure to pay all her bills and other financial obligations on time--failing to do so will hurt her chances of getting a good business credit card.Since it will take a while for the business credit score to be established, business owners should wait at least a year before applying.
Choosing a Credit Company
All major credit card companies offer business credit cards. A business owner should take a look at each company's products to try to figure out which ones work best for her business's financial needs. She should also carefully check each card's interest rates and other fees. She should try to find a balance between low fees and the right range of services. She should also make sure she has enough capital to pay the business credit card bills on time.Paperwork Requirements
Once she chooses a bank, a business owner can begin the application process. Before applying for the business credit card, she must put together certain information and documents and have them on hand as she fills out the applications. This includes the Social Security numbers of the business owner and anyone who would be authorized to use the card, the business's legal name and street address, the business's tax ID number and a copy of business gross sale and profit figures for the last fiscal year. Some lenders may request other financial documents as the application process continues.The Next Step
Once the application paperwork is submitted, the bank will look over it and judge whether or not the business is financially sound enough to get a business credit card. If an application is not accepted, the business owner can always file again, but she should wait at least a year before doing so.Potential Business Credit Card Drawbacks
First and foremost, business credit cards should be used to manage the business's existing financial assets. They should not be used to generate cash flow unless the business owner has no other choice. The reason for that is simple. Compared to personal credit cards, business credit cards have higher interest rates and other fees. That means that if the business owner falls behind on payments, the consequences will be more severe. This will also have a negative impact on the business's ability to attract clients and get more loans.Business owners should also make sure they carefully check their business credit card bills and expenses. Unlike personal credit cards, business credit cards have no protections against unauthorized spending. The credit card companies also have more leeway to change the terms without warning.
Business Credit Card Requirements for Partnerships
When you start a business, you will likely receive multiple offers for some type of business credit card. These cards would typically be offered in the name of the business. However, this partly depends on whether your business is incorporated. As a partnership, you have the option to leave your business unincorporated. Then, meeting the requirements for business credit would fall on the shoulders of each individual owner.
Basic Credit Requirements
The credit of both partners in a business will be considered when any lender extends financing to an unincorporated partnership. If one partner owns a larger percentage of equity, the credit of this owner will be weighed more heavily. However, both should have a record free of default, delinquency and other credit issues to qualify for the best credit cards.
Asset Requirements
If an unincorporated partnership fails, the partners will have to resolve outstanding debts personally. This is very risky for a lender. As a result, the lender will typical require collateral on any business credit card. This can take the form of a liquid asset, such as a business's bank account, if necessary. A further option is for one or both of the partners to use personal collateral to secure a loan.
Basic Credit Requirements
The credit of both partners in a business will be considered when any lender extends financing to an unincorporated partnership. If one partner owns a larger percentage of equity, the credit of this owner will be weighed more heavily. However, both should have a record free of default, delinquency and other credit issues to qualify for the best credit cards.
Asset Requirements
If an unincorporated partnership fails, the partners will have to resolve outstanding debts personally. This is very risky for a lender. As a result, the lender will typical require collateral on any business credit card. This can take the form of a liquid asset, such as a business's bank account, if necessary. A further option is for one or both of the partners to use personal collateral to secure a loan.
Monday, November 8, 2010
How to Chose an E-currency Exchanger
For many people the thought of using an online e-currency can be a scary thing. We have all heard the horror stories of people being scammed and money being stolen by dishonest companies, but there are some companies out there that have worked hard to build up a good reputation for being honest and do what they can to fight frauds and scams that use e-currencies.
What is an e-currency?
Just putting the word e-currency into a search engine will bring up a huge list of strangely named currencies that you have probably never heard of. There are though a few big online currencies that are accepted by many merchants, companies and shops.
One of the main e-currencies that has been around for over 5 years is E-gold. This is an online payment system backed by real gold. You have an account, much like a bank account, and your gold is stored in that. E-gold themselves do not buy or sell e-gold, you have to do that through an e-currency exchanger. Once you have e-gold in your account you can spend it with any merchant who takes payment that way.
Another good e-currency is Pecunix. This is again an online payment system that is backed by gold. Pecunix essentially works the same as E-gold, so they do not buy and sell their own currency, and it is again stored in the account you have with them.
There are many more online currency systems including C-gold (backed by gold), Liberty Reserve (backed by gold) and Paypal (backed by credit cards).
What is an e-currency exchanger?
An e-currency exchanger converts money to your chosen e-currency and places it in your account for you to spend as you wish. Funds can be sent to an exchanger by many methods, but the most popular are bank transfer, Western Union and Paypal.
Once you have sent your funds by your chosen method the exchanger converts it to whichever e-currency you have decided to use and places it in the account you have given them. Remember that all exchangers charge a commission to do the conversion for you.
How to chose an exchanger?
Many people worry about how to chose a reputable exchanger. They have either had a bad experience or know someone that has. However there are a few things you can do to give yourself a little peace of mind and find out about the company you are going to send money to :-
1) Check the details of their website
We have all seen the fake websites out there that have links that go nowhere and just don’t look right, so when making your choice make sure their email address works and that you get a response in a timely manner from them. If they have a telephone number you can call, give them a ring. Check the WHOIS details of the website as a back up. Also check how long they have been in business as this is one of the best signs of a good exchanger. Scammers do not last very long.
2) Ask people
One of the best ways of finding out information is to ask real people. If you have friends who have used an exchanger see what they thought. One of the best places to find out information is on forums. On these you can ask your questions or just read what other people have said about certain exchangers. Be careful though as not all information on forums is true and correct, so make sure you check anything you read on a forum carefully.
3) Are they a member of the GDCA?
The GDCA (Global Digital Currency Association) is a trade association of online currency operators, exchangers, merchants and users. As with any other trade association you can find out information on the exchangers you have in mind. You can see if they have any complaints against them and how they rank. You can also submit complaints to them as well.
4) Do they accept bank transfers?
This may seem a strange one, but it can give you a little more piece of mind. When a company opens a bank account they have to provide ID’s, company documents and personal documents that have to be checked. Although this does not mean that the company is 100% legitimate, it does mean there is some form of paper trail. It also means that if anything goes wrong then you can recall your funds through your own bank. Never send funds to a personal bank account unless you know that person.
Although these few tips may help you decide on an exchanger they are not fool proof and if you are really undecided on which one to pick then start out by sending just a small amount to be exchanged and then as you build trust in the exchanger you have picked you can start sending larger amounts to them.
As with any internet business always keep your wits about you and check as much information about them as you can.
Happy exchanging!
What is an e-currency?
Just putting the word e-currency into a search engine will bring up a huge list of strangely named currencies that you have probably never heard of. There are though a few big online currencies that are accepted by many merchants, companies and shops.
One of the main e-currencies that has been around for over 5 years is E-gold. This is an online payment system backed by real gold. You have an account, much like a bank account, and your gold is stored in that. E-gold themselves do not buy or sell e-gold, you have to do that through an e-currency exchanger. Once you have e-gold in your account you can spend it with any merchant who takes payment that way.
Another good e-currency is Pecunix. This is again an online payment system that is backed by gold. Pecunix essentially works the same as E-gold, so they do not buy and sell their own currency, and it is again stored in the account you have with them.
There are many more online currency systems including C-gold (backed by gold), Liberty Reserve (backed by gold) and Paypal (backed by credit cards).
What is an e-currency exchanger?
An e-currency exchanger converts money to your chosen e-currency and places it in your account for you to spend as you wish. Funds can be sent to an exchanger by many methods, but the most popular are bank transfer, Western Union and Paypal.
Once you have sent your funds by your chosen method the exchanger converts it to whichever e-currency you have decided to use and places it in the account you have given them. Remember that all exchangers charge a commission to do the conversion for you.
How to chose an exchanger?
Many people worry about how to chose a reputable exchanger. They have either had a bad experience or know someone that has. However there are a few things you can do to give yourself a little peace of mind and find out about the company you are going to send money to :-
1) Check the details of their website
We have all seen the fake websites out there that have links that go nowhere and just don’t look right, so when making your choice make sure their email address works and that you get a response in a timely manner from them. If they have a telephone number you can call, give them a ring. Check the WHOIS details of the website as a back up. Also check how long they have been in business as this is one of the best signs of a good exchanger. Scammers do not last very long.
2) Ask people
One of the best ways of finding out information is to ask real people. If you have friends who have used an exchanger see what they thought. One of the best places to find out information is on forums. On these you can ask your questions or just read what other people have said about certain exchangers. Be careful though as not all information on forums is true and correct, so make sure you check anything you read on a forum carefully.
3) Are they a member of the GDCA?
The GDCA (Global Digital Currency Association) is a trade association of online currency operators, exchangers, merchants and users. As with any other trade association you can find out information on the exchangers you have in mind. You can see if they have any complaints against them and how they rank. You can also submit complaints to them as well.
4) Do they accept bank transfers?
This may seem a strange one, but it can give you a little more piece of mind. When a company opens a bank account they have to provide ID’s, company documents and personal documents that have to be checked. Although this does not mean that the company is 100% legitimate, it does mean there is some form of paper trail. It also means that if anything goes wrong then you can recall your funds through your own bank. Never send funds to a personal bank account unless you know that person.
Although these few tips may help you decide on an exchanger they are not fool proof and if you are really undecided on which one to pick then start out by sending just a small amount to be exchanged and then as you build trust in the exchanger you have picked you can start sending larger amounts to them.
As with any internet business always keep your wits about you and check as much information about them as you can.
Happy exchanging!
WebMoney
The Oldest Payment System
WebMoney appeared in 1998. At that time there were not so many people how knew about electronic money and they used virtual payment systems. In a decade the number of WebMoney users exceeded 4 million. Sale and purchase transactions between the users and web-site owners are mostly engage WebMoney even when the partners are far distant from each other.
What are WebMoney’s advantages? First of all, it is quick. Secondly, WebMoney enables seller and customer to interact directly without any mediators. Thirdly, WebMoney allows full automation of internal business processes in Internet shops and save time.
A rather significant part of WebMoney users includes web-games fans. They need an exchanger where they can buy some standard game money. Traditionally they use WebMoney to that end.
WebMoney in its Broad Concept
WebMoney users call it a payment system for simplifying and better understanding, but WebMoney is the system of title recording. It uses no electronic currency. All settlements and payments in WebMoney use money units. These units are the guarantees of material values and the confirmation that the values belong to a certain person.
WebMoney functional possibilities have already gone beyond Internet payments long ago. This system may be used for immediate money transfers in real time. WebMoney is suitable for settlements in Internet shops and web-sites, for credit and cell-phone payments.
Some think WebMoney is mostly used for micro-payments. Compared with postal and bank transfers WebMoney are far quicker and safer. Besides, the commission does not depend on the amount. The charge is 0.8%.
This ‘virtual money’ has no real guarantee. Every country has its WebMoney representative office. This system of title recording legally exists in every second developed country of the world.
WebMoney appeared in 1998. At that time there were not so many people how knew about electronic money and they used virtual payment systems. In a decade the number of WebMoney users exceeded 4 million. Sale and purchase transactions between the users and web-site owners are mostly engage WebMoney even when the partners are far distant from each other.
What are WebMoney’s advantages? First of all, it is quick. Secondly, WebMoney enables seller and customer to interact directly without any mediators. Thirdly, WebMoney allows full automation of internal business processes in Internet shops and save time.
A rather significant part of WebMoney users includes web-games fans. They need an exchanger where they can buy some standard game money. Traditionally they use WebMoney to that end.
WebMoney in its Broad Concept
WebMoney users call it a payment system for simplifying and better understanding, but WebMoney is the system of title recording. It uses no electronic currency. All settlements and payments in WebMoney use money units. These units are the guarantees of material values and the confirmation that the values belong to a certain person.
WebMoney functional possibilities have already gone beyond Internet payments long ago. This system may be used for immediate money transfers in real time. WebMoney is suitable for settlements in Internet shops and web-sites, for credit and cell-phone payments.
Some think WebMoney is mostly used for micro-payments. Compared with postal and bank transfers WebMoney are far quicker and safer. Besides, the commission does not depend on the amount. The charge is 0.8%.
This ‘virtual money’ has no real guarantee. Every country has its WebMoney representative office. This system of title recording legally exists in every second developed country of the world.
E-Gold Payment System
Electronic Gold
E-Gold payment system uses precious metals- gold, silver, platinum and palladium, as money security. It appeared in the USA in 1996 but because of the fraud scandal in 2003 the E-Gold LTD company’s registration was annulled. Since that moment the company continues working with no registration. However, storing money in metals is still the safest and the most secure.
Facts and statistics prove the international scope of E-gold system. Today more than 2.5 million E-gold users are registered in the system. Cover funds of the payment system include about 3.5 million grams of gold. It equals 65 million dollars. Every day about 400 kilos of gold go from account to account.
E-gold users are curious whether the gold grams traveling around the web really exist. Nobody knows for sure, but the company claims that the precious metals storages are located in three affiliates: Brinks’ Global Services, Transguard Security and Services MAT Securitas Express AG.
The Most Popular Payment System
E-gold has no cover with some certain currency. All settlements are made in gold grams and ounces. It is very easy for international settlements. E-gold is used for payments as well as for making profits based on precious metal rates. Many earnings in the web imply using E-gold. They include Internet casinos, pari-mutuels, exchanges and financial pyramids. Payment system’s reliability is guaranteed by Switzerland and US major banks. E-gold users are always informed of many currency transactions providing them with the opportunity to invest money into high income projects and take part in Internet sales and auctions.
Making money transfers via E-gold is safe and legal from taxation point of view. Commission for the transfers does not exceed 1% per annum. The fees are taken every month.
E-gold popularity increases daily because many major international business entities use the system in their financial transactions.
E-Gold payment system uses precious metals- gold, silver, platinum and palladium, as money security. It appeared in the USA in 1996 but because of the fraud scandal in 2003 the E-Gold LTD company’s registration was annulled. Since that moment the company continues working with no registration. However, storing money in metals is still the safest and the most secure.
Facts and statistics prove the international scope of E-gold system. Today more than 2.5 million E-gold users are registered in the system. Cover funds of the payment system include about 3.5 million grams of gold. It equals 65 million dollars. Every day about 400 kilos of gold go from account to account.
E-gold users are curious whether the gold grams traveling around the web really exist. Nobody knows for sure, but the company claims that the precious metals storages are located in three affiliates: Brinks’ Global Services, Transguard Security and Services MAT Securitas Express AG.
The Most Popular Payment System
E-gold has no cover with some certain currency. All settlements are made in gold grams and ounces. It is very easy for international settlements. E-gold is used for payments as well as for making profits based on precious metal rates. Many earnings in the web imply using E-gold. They include Internet casinos, pari-mutuels, exchanges and financial pyramids. Payment system’s reliability is guaranteed by Switzerland and US major banks. E-gold users are always informed of many currency transactions providing them with the opportunity to invest money into high income projects and take part in Internet sales and auctions.
Making money transfers via E-gold is safe and legal from taxation point of view. Commission for the transfers does not exceed 1% per annum. The fees are taken every month.
E-gold popularity increases daily because many major international business entities use the system in their financial transactions.
Liberty Reserve: Easy to Use Safe System
Liberty Reserve is registered in Costa Rica giving it some advantages: the systems officially registered in US and Europe are more often audited by legal authorities. Liberty Reserve has been stable for more than 5 years now and has good protection system, it is anonymous and charge-free.
Peculiarities of the System Use
When registering a new account the user, who can be any country’s national, enters his/her login data, PIN-code, secret question and answer and personal data. PIN-code is entered using a virtual keyboard: every time the keys switch places for security reasons. When attempting to break the Liberty Reserve account no mouse tracing software can help. Money depositing and withdrawal is carried out though electronic exchangers.
Liberty Reserve has two account types: LR-USD (based on US dollar) and LR-Gold (based on gold). There is no commission in Liberty Reserve. When user wishes his/her account number is hidden the recipient, he/she pays a fee for the transfer (0.75$).
Peculiarities of the system are the following:
- balance does not depend on gold prices;
- no monthly fees taken;
- money swap to other e-currencies;
- no commission for transactions;
- Liberty Reserve provides commission of 5% when a new account is registered using a referral link
Liberty Reserve High Protection Levels
Liberty Reserve safety has two protection levels: first – entering PIN-code created in registration using a virtual keyboard. It secures the system from logger-programs. Second- entering password and control image. Third – entering 3-symbol payment PIN-code using virtual keyboard when making a transaction. The entrance procedure has one more feature: when registering, the user enters any phrase to further appear when entering the account. When other phrase will appear, it means the web-site the user has entered is wrong and someone is trying to steal his/her money. Liberty Reserve system is highly secure and easy-to-use in any transactions.
Peculiarities of the System Use
When registering a new account the user, who can be any country’s national, enters his/her login data, PIN-code, secret question and answer and personal data. PIN-code is entered using a virtual keyboard: every time the keys switch places for security reasons. When attempting to break the Liberty Reserve account no mouse tracing software can help. Money depositing and withdrawal is carried out though electronic exchangers.
Liberty Reserve has two account types: LR-USD (based on US dollar) and LR-Gold (based on gold). There is no commission in Liberty Reserve. When user wishes his/her account number is hidden the recipient, he/she pays a fee for the transfer (0.75$).
Peculiarities of the system are the following:
- balance does not depend on gold prices;
- no monthly fees taken;
- money swap to other e-currencies;
- no commission for transactions;
- Liberty Reserve provides commission of 5% when a new account is registered using a referral link
Liberty Reserve High Protection Levels
Liberty Reserve safety has two protection levels: first – entering PIN-code created in registration using a virtual keyboard. It secures the system from logger-programs. Second- entering password and control image. Third – entering 3-symbol payment PIN-code using virtual keyboard when making a transaction. The entrance procedure has one more feature: when registering, the user enters any phrase to further appear when entering the account. When other phrase will appear, it means the web-site the user has entered is wrong and someone is trying to steal his/her money. Liberty Reserve system is highly secure and easy-to-use in any transactions.
Moneybookers
The Moneybookers payment system was founded in the UK. Today it is popular in many European countries as well as some CIS countries.
Moneybookers User’s Privileges
Moneybookers users are able to send money to their credit card accounts and make money transfers to banks in different countries. Moneybookers personal account gives its users several privileges. The cost of transaction does not exceed 0.5 Euro even then the amount of the transaction is huge. No money can be transferred to the unknown users.
In Moneybookers system there are partnership programs providing the users with the possibility to earn from the transactions interests. In a year one can get about 30% from each transaction commission of a newly drawn user.
Registered users can have several accounts in the system, one of which is considered prime. The commission for this account will be the smallest, of about 1.8 Euro. All others will cost almost twice more.
The Safest Payment System
Moneybookers is considered one of the safest payment systems. It constantly requests user’s ID confirmation; no registration of under-aged is allowed. The transaction amounts for security reasons are limited by one thousand dollars. Moneybookers also tries to avoid financial disputes and other actions that can breach the law.
But the reliability of Monebookers is guaranteed only when all users’ rules are followed. At first, one goes through a verification procedure confirming that the registering user really exists. Users’ personal information is confidential and safely protected from any disclosure to third parties.
Any risks of gambling business fraud, financial pyramids and money laundering are minimal in Moneybookers.
Moneybookers system is popular in Europe. Russia and other CIS countries prefer anonymous payments and transfers. Moneybookers policy is rather strict. It guarantees safety but is deprived of democracy. That is why it is used more in conservative nations, in particular, England.
Moneybookers User’s Privileges
Moneybookers users are able to send money to their credit card accounts and make money transfers to banks in different countries. Moneybookers personal account gives its users several privileges. The cost of transaction does not exceed 0.5 Euro even then the amount of the transaction is huge. No money can be transferred to the unknown users.
In Moneybookers system there are partnership programs providing the users with the possibility to earn from the transactions interests. In a year one can get about 30% from each transaction commission of a newly drawn user.
Registered users can have several accounts in the system, one of which is considered prime. The commission for this account will be the smallest, of about 1.8 Euro. All others will cost almost twice more.
The Safest Payment System
Moneybookers is considered one of the safest payment systems. It constantly requests user’s ID confirmation; no registration of under-aged is allowed. The transaction amounts for security reasons are limited by one thousand dollars. Moneybookers also tries to avoid financial disputes and other actions that can breach the law.
But the reliability of Monebookers is guaranteed only when all users’ rules are followed. At first, one goes through a verification procedure confirming that the registering user really exists. Users’ personal information is confidential and safely protected from any disclosure to third parties.
Any risks of gambling business fraud, financial pyramids and money laundering are minimal in Moneybookers.
Moneybookers system is popular in Europe. Russia and other CIS countries prefer anonymous payments and transfers. Moneybookers policy is rather strict. It guarantees safety but is deprived of democracy. That is why it is used more in conservative nations, in particular, England.
PayPal
One of the leading American on-line payment systems, PayPal, was founded in 1998. In October 2002 eBay, the leader in Internet auction business, acquired the company for 1.5 billion dollars. The number of the system users increases daily and now it exceeds 100 million.
System Features
Unlike other systems, PayPal is closely connected with a client’s bank account or bank cards. When the user has not enough amount on his/her PayPal account the system, as may be required, automatically takes the requested amount from his/her bank account. Besides the client’s money any time can be transferred to his/her bank account. PayPal operator has no client software to access the system. As an option for money transfer, e-mail is used as a login to enter the system. A sender goes to a web-site with his information and confirms his/her payment. A recipient gets mail including the paid amount, transaction ID and sender’s information. This system is suitable for majority of transactions.
PayPal account types
A system user can choose one of three account types, each having its peculiarities and fees. The fees can vary from country to country where account is registered. The following account types are used in PayPal:
- Personal Accounts are for personal use inside PayPal system: transfers to family, friends and clients of the user. This type is not planned for credit card payments. Personal Account turnover is limited to 500 dollars a month.
- Premier Accounts are for users who have greater financial turnover than in Personal Accounts and who need bank accounts and credit card payments.
- Business Accounts are the accounts opened by companies. These accounts can be registered only on behalf of the company with its details and logo. The company wishing to open its Business Account shall have TAX ID along with the company’s registration documents.
General list of possible options for all accounts is standard: sending and reception of money, subscriber’s payments, account insurance, e-mail communication with administration. Premier and Business accounts users are granted a debit card and can make massive payments (muli-addresser payments). Personal accounts users can reorganize them its Premier or Business accounts free of charge.
PayPal advantage – Its safety
PayPal is one of the most significant and popular means to send and accept payments in eBay auctions, consequently the safety matters are very important to the company. All accounts, regardless of their types are classified to verified and unverified. PayPal official web-site states that verified accounts are trusted more. In additional to the instant payment accrual and high safety PayPal has one more advantage: when a commodity bought is not received or does not comply with its description the buyer can get back, fully or partially, the amount paid for it.
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