Credit Card Terms You Should Know

When looking for a credit card it is important to understand the various terms related to credit cards. Below are some of the most common terms you will come across when searching for a credit card. By understanding these terms you can better compare credit card offers and determine which is the better offer.

Annual Fee:

Many banks or card issuers may charge a annual membership fee for their credit cards. The fee may range from $25 to over a $100 depending on the card. There are also many cards out there that no have no annual fee!

Annual Percentage Rate:

Often referred as the "APR", this shows how much credit will cost you on a yearly basis. The lower the rate the less you will pay on interest charges. There are two types of APR:

1. Variable APR:

A variable annual percentage rate allows credit card issuers to change your APR based on fluctuations in indexes such as the prime rate.

2. Fixed APR:

A fixed annual percentage rate is not subject to adjustment based on indexes like the variable rate. But beware that credit card issuers reserve the right to change the your rate at anytime.

Average Daily Balance Method:

This is the most common method that credit card companies use to calculate your payment. An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in the billing cycle.

Billing Cycle:

The number of days between the previous statement date and the current statement date. The billing cycle is typically between 27 to 33 days long.

Credit Line:

This is the most you can charge on your account. Under some conditions, your card issuer may increase or decrease your credit line.

Finance Charges:

The total charge for using a credit card consisting of interest charges, late fees, transaction fees and other charges.

Grace Period:

Many credit card companies offer a grace period where no interest is charged. The typical grace period is usually between 20 and 30 days. However, if there is no grace period, finance charges will accumulate the moment a purchase is made with the credit card.

Introductory APR:

Also known as a teaser rate, many credit card companies will offer a low interest rate for an initial period of time to encourage consumers to accept their credit card offer. After the initial period the rate will change to the stated interest rate.

Periodic Rate:

This is the interest rate described in relation to a particular amount of time. For example, the daily periodic rate is the cost of credit per day.

John McClendon is a freelance writer and website administrator for Rewards Credit Cards

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Buying Credit Card Terminals

A credit card terminal is an indispensable device for your business. Major features of a credit card terminal are its price, speed, and reliability. There are three major types of terminals - traditional, wireless, and virtual. Each of them has its own features and functions. Modern credit card terminals require electricity and telephone lines. The price of a basic terminal ranges between $150 and $300. Terminals with printers vary from $200 to $600. For wireless terminals, the cost is ranges from $600 to $1,000. AVS (address verification system) is a standard feature on most credit card terminals- so it is advisable not to buy a terminal without it. While purchasing wireless terminals, important factors to be considered are battery life, weight, range, and shock-resistance.

Credit card terminals are perfect for businesses of all sizes. They come in different models. Businesses already using credit card terminals need to buy extra equipments to maintain additional services such as debit card transactions and issuing and accepting gift cards. Always keep your terminals clean. Dust, crumbs, and especially paper lint can quickly block printers and gum up stripe readers.

If you choose to buy your credit card terminal online, do some preparatory research at the outset. You should consider shipping charges and any other hidden costs involved. It is a good idea to compare prices online. Also, check the warranty and customer care services. You may also consider upgrading your existing machine rather than buying a totally new one. It is advisable that you go through online reviews from knowledgeable sources.

Credit Card Terminals provides detailed information on Credit Card Terminals, Credit Card Terminal Systems, Wireless Credit Card Terminals, Credit Card Processing Terminals and more. Credit Card Terminals is affiliated with Credit Card Processing Software.

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Choosing the Right Credit Card Terminal

A wide range of credit card terminals are available in the market today. You can pick one for yourself. A wise business decision would be to choose a credit card terminal that addresses your needs.

Your customers may want to pay via his credit card. In the physical presence of the credit card any transactions made using a credit card terminal is virtually safe and secure. When a sale is to be completed, the credit card is swiped through the Credit Card terminal and the processing of the payment begins from there.

During a sale, customer's credit card is swiped through the Credit Card Terminal and he is asked to type in his numbers on the terminal keypad. The payment is then processed. Most of the times, the in-built printer or a separate printing device attached to the terminal directly prints two receipts. One receipt is given to the customer to keep with himself/herself and the other is signed by the customer and retained by the merchant.

A credit card terminal is also used by mail order or Internet order businesses, in which the card is not physically present. The merchant is required to punch in the credit card information into the terminal to process the payment. The other way around, which is advisably a better option for these businesses, is to use credit card processing software or an Internet payment gateway.

Another point that would influence your shopping for a credit card terminal is the cost factor. A credit card terminal can be purchased at a price anywhere between $119 to more than $1000. The cost of a credit card terminal would probably depend on its expected life, the features it offers and the presence or absence of an in-built printer.

Zed Miller, an expert business writer, regularly contributes his articles to various websites just to help merchants, small businesses and retail houses to expand their market base by accepting the prevailing mode of payments. Visit http://www.merchantservicez.com to read more articles from this author Article Source: http://EzineArticles.com/?expert=Zed_Miller