Research has recently suggested that consumers who apply for loans and other forms of credit too often through comparison websites may risk damaging their credit rating.
It is estimated that 8.7 million people have bought financial products such as loans, credit cards and insurance through using comparison websites over the past year.
However, research shows that the sites could be leading consumers to adversely affect their credit rating as many of the comparison, or aggregator, sites concentrate on price rather than quality of service or suitability of a product.
As a result, consumers are drawn in to applying for unsuitable products and are therefore continuously rejected.
Although rejections are not held on a person's credit record, applications for credit do show up as "footprints".
Consumer affairs manager at credit rating company Experian, said: "All the applications you have made for credit over the past 12 months will show up on your credit report.
"When a lender carries out a credit check they will see those applications and if there are a large number of them it may make them think that you are desperate for credit, or it may even look as though someone has been fraudulently trying to apply for credit in your name," he said.
The financial comparison site that commission the report, MoneyExpert.com, states on their website that 2.8 million people have made applications for 3.5 million financial products over the past year. Around 6 per cent of people have been rejected when applying for credit cards, mortgages and loans.
MoneyExpert.com has launched a credit profiling service that allows consumers to tailor their search so that only those credit providers whose lending criteria suits their credit rating appear on the list.
The profile is based on the consumer's answers to questions about their history and no footprint is left on the consumer's credit record.
Professionals in the financial industry are now calling on all comparison sites to offer a similar service. Customers must also be warned about the potential damage to credit rating that could be done by making too many applications.
Website's should also improve their offer to consumers by being more transparent on fees and charges imposed by providers. They also need to broaden the focus of sites to include service and features other than price.
No one has an automatic right to credit, but if you are refused on the basis of your credit rating you can tackle the problem.
If the decision to refuse you credit was made by a computerised credit scoring system, you have the right to ask the lender to review the decision.
Most High Street lenders will make a decision on whether or not to grant you credit on the basis of information supplied by the UK's two leading credit reference agencies - Experian and Equifax.
These two firms compile credit histories from a host of different sources such as:
· Data held by the agencies · Electoral register · County Court judgments · Bankruptcy and administration orders · Credit payment history · House repossessions
Your record will be highlighted if you have had a large number of credit checks carried out. Everything from buying a freezer on an interest-free deal to opening a new credit card will leave an electronic footprint on your credit history.
However, the decision to refuse credit will be made by the lenders, based on their own criteria, but if you are refused credit you could check your credit history to make sure no mistakes have been made.
Within 28 days of your last contact about a credit deal, ask the lender for the name and address of the agency which provided the information. You can then write to the agency yourself and ask to see your information on their files.
To do this you will need to send a £2 fee, give your full name, address and postcode, as well as the details of your addresses over the past six years.
If you are a sole trader or partnership, give your business name and address in case your information is held under those details. The agency must then reply within seven days.
If you find the decision to refuse your credit was unjustified or wrong, and there is further relevant information which may change the lender's mind, you can ask the lender how to go about having the decision reviewed.
You can ask for your credit history to be changed if it is incorrect or includes details about people with whom you no longer have financial connections with.
You can also have notes attached to explain certain periods in your history. However, you can't get information removed just because you might find it embarrassing.
Most national newspapers advertise companies claiming they will repair your credit rating. However, these firms offer will charge a high fee.
You have the right to ask credit companies in writing, at any time, for a copy of your file. The Information Commissioner can provide consumer guidance leaflets with further
by Michael Challiner
Wednesday, February 21, 2007
Tuesday, February 6, 2007
How To Combat Credit Card Fraud
Mail Order companies and E-Commerce Web operators are constantly faced with a higher chance of incurring a fraudulent credit card transaction than are merchants who operate physical storefronts.
Because neither the Cardholder nor the card is physically present during the transaction, the merchant has no real way of easily determining whether or not they are dealing with a legitimate customer.
According to a report recently issued by the U.S. Federal Bureau of Investigation (F.B.I.) in conjunction with the Internet Crime Complaint Center (IC3):
"Credit and debit card fraud comprised 6.3% of all complaints received in 2006."
This represents over $60 Billion (.U.S.) in lost revenue to merchants that accept credit and debit cards for on-line transactions. While some of those losses are covered by the Issuing Bank, who may often reimburse the merchant's if all of the bank's card acceptance and processing rules were followed exactly, some of that loss may still be passed back to the merchants in the form of charge backs.
You can help reduce your risk of experiencing credit card fraud by following these tips:
1. Review all Orders Carefully. Ensure that the customer filled in all of the appropriate fields on the order form. Check to make sure that the order passed your credit card processor's Address Verification Check (AVS). Most fraudulent credit card transactions fail to pass AVS.
2. Be suspicious of orders with a different Ship To and Bill To address unless the order is from an existing customer and this is part of their normal ordering process. Even so, stay alert if the customer has entered a different Ship To address from the one that they normally use.
3. Be alert for the use of Free Email Addresses. The majority of credit card scammers use free e-mail addresses from HotMail, Yahoo and other free e-mail providers.
4. Keep all transaction documentation. Make sure that your shopping cart stores the I.P. address that the customer used when visiting your site as well as the date and time of the visit. This information will be helpful if you are involved in a fraud investigation. If you have telephone contact with the customer, add their Caller ID information to the order record.
5. Be Suspicious of first-time high order amounts. If your first contact with a new customer is for an unusually high dollar amount, especially if they are requesting overnight delivery services, phone the customer to verify their contact information.
6. Verify customer telephone numbers and addresses using any of the free White pages web sites such as Whitepages.com.
7. If in doubt, call the customer. You can usually avoid being scammed by simply getting the customer on the phone at the telephone number they provided on the order form. If you are unable to reach the customer, or if the person at that number has no idea who the customer is, cancel the order. It's better to be safe than sorry.
8. Make sure that your order form requires the customer to enter the Card Verification Value (CVV) number that is printed on their credit card. And make sure that your software passes this value along to your credit card processor. Knowing the CVV usually means that the cardholder is in physical possession of the credit card and not just using a stolen number that they got from somewhere.
While there is no guarantee that following these 8 steps will reduce your credit card fraud experience completely, there's every chance that you can cut it back dramatically by simply being alert and following up on your suspicions
by Debbie Dragon
Because neither the Cardholder nor the card is physically present during the transaction, the merchant has no real way of easily determining whether or not they are dealing with a legitimate customer.
According to a report recently issued by the U.S. Federal Bureau of Investigation (F.B.I.) in conjunction with the Internet Crime Complaint Center (IC3):
"Credit and debit card fraud comprised 6.3% of all complaints received in 2006."
This represents over $60 Billion (.U.S.) in lost revenue to merchants that accept credit and debit cards for on-line transactions. While some of those losses are covered by the Issuing Bank, who may often reimburse the merchant's if all of the bank's card acceptance and processing rules were followed exactly, some of that loss may still be passed back to the merchants in the form of charge backs.
You can help reduce your risk of experiencing credit card fraud by following these tips:
1. Review all Orders Carefully. Ensure that the customer filled in all of the appropriate fields on the order form. Check to make sure that the order passed your credit card processor's Address Verification Check (AVS). Most fraudulent credit card transactions fail to pass AVS.
2. Be suspicious of orders with a different Ship To and Bill To address unless the order is from an existing customer and this is part of their normal ordering process. Even so, stay alert if the customer has entered a different Ship To address from the one that they normally use.
3. Be alert for the use of Free Email Addresses. The majority of credit card scammers use free e-mail addresses from HotMail, Yahoo and other free e-mail providers.
4. Keep all transaction documentation. Make sure that your shopping cart stores the I.P. address that the customer used when visiting your site as well as the date and time of the visit. This information will be helpful if you are involved in a fraud investigation. If you have telephone contact with the customer, add their Caller ID information to the order record.
5. Be Suspicious of first-time high order amounts. If your first contact with a new customer is for an unusually high dollar amount, especially if they are requesting overnight delivery services, phone the customer to verify their contact information.
6. Verify customer telephone numbers and addresses using any of the free White pages web sites such as Whitepages.com.
7. If in doubt, call the customer. You can usually avoid being scammed by simply getting the customer on the phone at the telephone number they provided on the order form. If you are unable to reach the customer, or if the person at that number has no idea who the customer is, cancel the order. It's better to be safe than sorry.
8. Make sure that your order form requires the customer to enter the Card Verification Value (CVV) number that is printed on their credit card. And make sure that your software passes this value along to your credit card processor. Knowing the CVV usually means that the cardholder is in physical possession of the credit card and not just using a stolen number that they got from somewhere.
While there is no guarantee that following these 8 steps will reduce your credit card fraud experience completely, there's every chance that you can cut it back dramatically by simply being alert and following up on your suspicions
by Debbie Dragon
Saturday, February 3, 2007
High Volume Merchant - Do You Need One?
When your business grows to the point where it is ready to move into the electronic age, you should give some thought to opening a high volume merchant account to expand your company’s potential. A merchant account will allow you to partner with a local bank or another financial institution to provide credit card processing payment options to online customers through the company Website.
Creating a high volume merchant account will let you increase operating capacity to process exponential numbers of customers and credit transactions. You won’t have to worry about keeping correct change on hand at all times, nor will you have as many bad checks to chase after. Your customers won’t have to look for an ATM and pay extra usage fees to get cash when they wish to shop at your company’s physical location or online Website. You can hire fewer people to accept payments since your electronic equipment will be able to do that for you. In a short time your profits may soar as operating costs dwindle.
To apply for your high volume merchant account, first find a bank that offers this service. It need not be in your area, as you can now do most banking tasks online via the Internet. You will probably want to open your merchant account in a country that is economically stable. One with U.S. bank branches might be particularly useful in helping you open a high volume merchant account, since many U.S. banks enjoy a highly esteemed international reputation. Whether you apply online or in person, you will need to show proof of your citizenship and your company’s country of operation. You must show that your business does not involve illegal, and in some cases, immoral activities like pornography, gambling, pharmacy, and telemarketing initiatives. Generally, there are no limits on volume, so even if your credit card processing unit brings in far more profit than anticipated, you need not worry about being charged extra fees, although you will have to clarify this up front.
Your application for a merchant account could be approved in a day or two, which means you could start accepting credit card payments in a couple of days. Of course, you will need to select the type of credit card processor that you want to use either at a physical location or via your online Website. You may want to use a wireless processor for employees who travel from one site to another. Your high volume merchant account will be ready for business promptly to ensure that payments can be processed right away for your customers’ convenience and your company’s profit.
Many entrepreneurs, company owners, and managers find it exciting to expand their operations to include credit card processing options so that customers can shop night and day, 24/7. Start browsing online banking sites or community financial institutions that can provide this opportunity, and carefully read the conditions and terms for each institution before you choose one and apply for your high volume merchant account.
About the author:
Shane Penrod is the founder of Merchant-Acount-Quotes.com Specializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.co
by: Shane Penrod
Creating a high volume merchant account will let you increase operating capacity to process exponential numbers of customers and credit transactions. You won’t have to worry about keeping correct change on hand at all times, nor will you have as many bad checks to chase after. Your customers won’t have to look for an ATM and pay extra usage fees to get cash when they wish to shop at your company’s physical location or online Website. You can hire fewer people to accept payments since your electronic equipment will be able to do that for you. In a short time your profits may soar as operating costs dwindle.
To apply for your high volume merchant account, first find a bank that offers this service. It need not be in your area, as you can now do most banking tasks online via the Internet. You will probably want to open your merchant account in a country that is economically stable. One with U.S. bank branches might be particularly useful in helping you open a high volume merchant account, since many U.S. banks enjoy a highly esteemed international reputation. Whether you apply online or in person, you will need to show proof of your citizenship and your company’s country of operation. You must show that your business does not involve illegal, and in some cases, immoral activities like pornography, gambling, pharmacy, and telemarketing initiatives. Generally, there are no limits on volume, so even if your credit card processing unit brings in far more profit than anticipated, you need not worry about being charged extra fees, although you will have to clarify this up front.
Your application for a merchant account could be approved in a day or two, which means you could start accepting credit card payments in a couple of days. Of course, you will need to select the type of credit card processor that you want to use either at a physical location or via your online Website. You may want to use a wireless processor for employees who travel from one site to another. Your high volume merchant account will be ready for business promptly to ensure that payments can be processed right away for your customers’ convenience and your company’s profit.
Many entrepreneurs, company owners, and managers find it exciting to expand their operations to include credit card processing options so that customers can shop night and day, 24/7. Start browsing online banking sites or community financial institutions that can provide this opportunity, and carefully read the conditions and terms for each institution before you choose one and apply for your high volume merchant account.
About the author:
Shane Penrod is the founder of Merchant-Acount-Quotes.com Specializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.co
by: Shane Penrod
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