Many small businesses either do not offer online credit card processing or they do not handle their own. There are many companies (like Etsy and eBay) who handle many outsourced retail goods for companies. It is, however, simple enough to set up your own credit card processing system on your business’s website and the growth in your business will be worth the small amount of processing payments you will have to make.

Setting up a credit card processing system on your website

Firstly, you will need to set up a store and shopping cart system like Shopify or Volusion. You should then contact a bank or online payment service who will allow your customers to pay for their goods directly through the internet for a small processing fee. The company will then take one of the following routes:

• They will stream your sites customers directly from their shopping cart on your website to a secure payment system on their site, or
• they will embed their sites payment button onto your website.

The company you choose will undoubtedly offer tech support and assistance, buy you could also contact a professional web designer to help with the setup.

What to look for in a processing system

Customers want your website to be three things:

1. Consistent in that payments are made and accepted the same way every time.
2. Versatile in that all payments are accepted from anywhere at any time.
3. Safe in that the customer’s money and your own is secure at all times.

What you will have to pay

There are several costs associated with a system like this. These costs include:

• Gateway fees
• Statement fees
• A percentage fee per transaction

Payment Express

Payment Express is a payment processing company by DPS (Direct Payment Solutions). It is a Visa and Mastercard solution which facilitates payments from a range of different points including wireless, vending, CRM, MOTO (Mail Order/Telephone Order), web, EFTPOS, IVR (Interactive Voice Response) and billing.

DPS began its services providing for companies in New Zealand and Australia in 1997. Some of DPS’s solutions include the 1997 OCV Server which facilitated credit card processing via the EFTPOS network, the 1998 PC EFTPOS which first integrated Windows POS and EFTPOS, and the 2000 Payment Express, which replaced both the OCV Server and PC EFTPOS systems.

Payment Express allows payments from many different cards including Visa, Mastercard, Diners Club, Discover, JCB, Maestro and more. They operate successfully in the USA, United Kingdom, India, Malaysia, Singapore, Hong Kong, Australia, New Zealand, the Pacific Islands and South Africa.

To contact DPS, simply go to their website and fill in an online questionnaire, detailing your business, your needs and what you are looking for. They will contact you to discuss your options and what they can do for you.

Virtual Card Services

Virtual Card Services is a credit card payment processing company that was established in 1996. This company offers automated, high volume, secure credit card processing. Virtual Card Services works with several reputable, well known financial service providers including ABSA, First National Bank, Nedbank, Standard Bank and more and accepts payments from many cards including Mastercard and Visa.

Virtual Card Services has also in been verified by Mastercard, Visa, PASA, AS (Association of System Operators) and ATM Solutions. “The Virtual Vendor” was one of Virtual Card Services’ first card payment processing systems. It catered for businesses who wanted to work within a financial service providers system but needed automated, electronic transaction systems.

Today, Virtual Card Services has a large base of happy and satisfied customers from all over the country. The company is based in Midrand, Gauteng and you can contact them via email, telephone or through their website.

Going through a company that enables you to host and design your own retail system on your website will help your business grow from strength to strength.

In our consumerist society almost everybody confuses need with want. They believe, due to advertising, peer pressure and society in general, that there is an endless array of objects, items and experiences that they MUST have in order to function and to be good enough. This urge to splurge is unfortunately addictive. There are many people who make impulse buys and then regret them later. There are people who buy items that they believe that they desperately need and then never use them. There is a huge group of people who cannot help themselves when something that they do not need is on sale. These people are at risk of overdoing their spending and getting themselves into financial trouble.

Getting into financial difficulty

One of the most serious and dangerous places to find yourself is in over your head with debt. It is easy enough to get there will loans and credit cards so easily available and the world constantly telling you to buy! Buy! Buy! But it is essential to try to avoid it if possible. If you reach a place where you cannot make your payments on your debts, you should immediately get help. Asking for advice and help from friends and family to get your debt under control is a good first step, but should things feel like they are getting out of hand, seeing a debt counsellor or applying for the debt review process is essential.

What is the debt review process?

If you have debt and are unable to make your loan or credit card repayments, you could apply for the debt review process. If your application is accepted, a debt review counsellor will negotiate with your creditors on your behalf and establish a pay back system that you can afford. The debt counsellor will also ensure that you have enough left after the debt payments to cover your essential living costs. They will give you advice on how to manage your money better going forward. However, if you have had legal action taken against you for outstanding payments, it is generally too late to apply for the debt review process.

Having a bad credit record

If you have had trouble repaying loans and other debt and if you have had legal action of some sort taken against you, you will have a bad credit record. Having a bad credit history means that in future creditors might not be willing to lend you money or let you open accounts. Getting a cell phone contract could be difficult and getting a loan for a house or vehicle could be impossible. Once you have a bad credit record, you should work at trying to improve it by paying off all your debt, not accruing any more debt, and keeping careful control of your financial situation. It is essential that you close all accounts at clothing stores and the like and you do not live beyond your means. If you keep spending on credit and if you cannot pay, you might be blacklisted which will make life incredibly difficult. Once you are blacklisted you will either have to live out the blacklist period making do without credit, or pay for early release so that you can have a clean slate. Once you have a clean slate however, you will have to start growing you credit history all over again because most money lenders want their clients to have a good credit history.

What people with bad credit MUST do with credit cards

If you still have a credit card and if you are still using it once you have bad credit, you should think twice. Accruing yet more debt once you have had financial trouble is a bad idea. The best thing to do is to either not use your credit card at all and get rid of it, or to use it only for emergencies.

What is the Diners Club?

The Diners Club is a company that was established in the early 1950s by Frank McNamara and Ralph Schneider. The club provides a credit service with a number of different charge cards. The cards are accepted in several hundred countries and by several million businesses around the world. The Diners Club credit card was the first ever charge card and although there are now many like it, it is still the most well known, most trusted and most widely accepted.

What are the benefits of a Diners Club card?

If you are planning on travelling beyond your country, or if your work obliges you to do so, transferring money and exchanging currency can be difficult, tedious and stressful. It is, however, generally essential to have money with you, and carrying a small amount of exchanged cash might not be enough. If you are there for business you may have to pay for business dinners and other entertainment, not to mention spending money and a bit extra in case of an emergency. Having a charge card that will be accepted almost everywhere in the countries you are visiting as well as the country you live in is highly convenient and time saving.

Some of the other benefits of a Diners Club card include:

• The Diners Club is a well known business with a good reputation. You can use their cards safe in the knowledge that your transactions will be secure as well as convenient. The club complies with BEE regulations and abides by the Code of Banking Practice, which offers protection to Diners Club members.
• There are a myriad of different card options and you can choose a card that suits your needs with fees and charges that you can afford.
• Each card carries its own perks and benefits, for example airport lounge access, travel insurance, lost card protection and ATM cash withdrawals with a very high limit.
• As the Diners Club promotes quality of living and travelling, choosing certain cards will allow you automatic membership to the Diners Club Wine Society and Connoisseur’s Club.
•  There are many air travel benefits to having a Diners Club card including frequent flyer programmes and much more.
• The Diners Club also offers many promotions, reward programmes and exclusive offers to its card holders.
• There are many Diners Club events happening throughout the year. The Diners Club Wine List Awards and Gold Pro-Ams are just two of the many affairs planned.
• If you had a Diners Club card, you could also receive special rates from hotels, restaurants and car rental companies on top of everything else.

What the Diners Club can offer you

According to the Diners Club website they have several different products on offer which include:

1. Platinum card
2. Corporate card
3. Travelink card
4. Courier Card
5. Aviation Services Card
6. Travel Lodged Account
7. Travel Services
8. Merchant Services

The Diners Club website

The Diners Club website offers information on all different options, events, news, special deals and services. You can manage your accounts and do your travel planning online at any time of day or night. While this process is incredibly efficient and time saving, you may want to contact one of the Diners Club staff via telephone or arrange a meeting to set your mind at ease. If you do choose to go with the Diners Club, you can apply online and your card will be delivered directly to you.

There is likely to be a Diners Club credit card that will suit your needs, whether business or personal, and make your travel experiences much more pleasant, and much less difficult.

Paying with credit cards offers customers a convenient payment method and has become a necessity for businesses to accommodate, small businesses included. Many people these days don’t carry large amounts of cash on them for safety and convenience issues, so businesses which don’t accept credit cards may lose out on business if they are unable to accept credit cards. Provided they have not exceeded their credit limit, customers can also buy on credit at any time, regardless of how much money they actually have.

There are a number of ways businesses can accept credit card payments, and the easiest way for small business to accept credit cards depends on the nature of the business.

1. Online

If you operate a web-based business there are a number of different options when it comes to customers paying by credit card. Using PayPal is the best way for most small businesses to accept credit cards. A PayPal business account will cost you $30 (about R240) per month. You will also be charged for transaction fees of 1.9% to 2.9% on each transaction. PayPal also offers a virtual terminal for customers wary of ordering online. The terminal allows your business to accept credit cards by fax, phone, post or email. PayPal is not the only online merchant account option out there, but has proven to be a reliable solution for most small businesses which conduct their business online.

1. Regular brick and mortar businesses

If you have a business where people pay in person, you need to a terminal with a merchant service account to be able to accept credit cards. The terminal is the machine that recognizes the credit card’s magnetic strip. To pay by credit card, customers or the retailer swipe the credit card along the terminal. The price of a merchant account depends on the amount of transactions and the amount of money swiped under these transactions. The more money that is charged to the terminal, the less it will cost you to use the machine. When looking for terminal providers it is best to shop around as prices vary from provider to provider.

Is a merchant account worth the money?

When it comes to online transaction, 85% of these transactions are processed with credit cards so not accepting credit card will probably cost you more than it costs to have a merchant account. Having a merchant account can also help with cash flow issues, as most merchant accounts dealing with credit cards will have the funds into your bank account in three to five days. This can be a relief for small business in particular, which may be operating with a tight flow of cash.

When choosing a merchant account, there are many companies offering a range of solutions so it is best to research each thoroughly and decide which suits your small business

1. Mobile businesses

If your business requires being on the move (such as tradesmen, repairmen, contractors and movers), you can still take credit card rather than cash or cheques. New technology has developed that allows mobile businesses to accept credit cards, such as the “Accept by Phone” service. This service allows the professional to dial a particular number before entering a unique PIN number and entering the credit card number and the billing amount. The transaction will be processed in only a few seconds at a low cost to the business.

If you accept credit cards, you may well have earned yourself a new customer, so it is certainly worth investigating your options when it comes to accepting the use of credit cards. With new technologies and services available, it is even easier to accommodate credit purchases, no matter how small your business may be.

How do I apply for a Visa Discovery Card?

• You can apply for your Discovery Card telephonically by calling 0860 11 CARD (2273).
• Discovery will check your real-time credit rating and send you a quote. This quote will tell you which Discovery Card you qualify for, how much your fees are, and what your credit limit is. Please note that all applications for a Discovery Card are subject to affordability and credit assessments.
• You can accept the quote you receive by signing and returning it by fax. To this document you must also attach a proof of income and a copy of your identification document.
• You will then receive you Discovery Card (within 14 days after accepting the quote) and be able to use the Visa Discovery Card benefits for South Africans. Once you have received the card, contact Discovery to let them know.
• Two weeks after receiving the card you will get a PIN number, allowing you to withdraw cash from your Discovery Card.

With a Discovery Card, you can get cash back when you shop at the stores listed on the comprehensive network of partner businesses. The amount of the cash back depends on your Vitality Drive status, your Vitality status (or both), and the amount you spend at the partner store within the billing cycle.

What are the Discovery Card partner stores?

• Altech Autopage
• Altech Netstar
• @home
• Reggies
• ToysRUs
• Cape Union Mart
• Exclusive Books
• Frasers
• Look & Listen
• Nando’s
• Pick n Pay
• Tiger Wheel and Tyre
• Stuttafords
• The Pro Shop
• Totalsports

Cash back amounts will amount to different savings depending on how long you have been a member and the type of Discovery Card you have (excluding Pick n Pay and Tiger Wheel & Tyre):

• If you have been on Vitality for less than 3 years, you are entitled to: 10% savings on a blue, bronze, silver or gold card.
• If you have been on Vitality for 3 to 5 years, you are entitled to: 10 % savings on blue; 11% savings on bronze; 12% savings on silver; 13% savings on gold; and 15% savings on diamond.
• If you have been on Vitality for more than 5 years, blue cards will be rewarded with 10% savings; 11% savings on bronze; 13% savings on silver, 15% savings on gold, and 20% savings on diamond.

The fine print

• The maximum amount of discount you can get at these partner stores is limited to 30% of your total spendage on your Discovery Card within that statement period.
• The total cash back amount is calculated with a limit of R10 000 spending at any of the Discovery Card partner stores.
• You won’t get cash back when paying in-store accounts or to make third party payments such as telephone accounts. This applies to partner stores, as well as Pick n Pay clothing, Pick n Pay liquor, Pick n Pay pharmacies and Pick n Pay express stores. These transactions do, however, contribute to your total spend on you Discovery Card.

To find out if you are eligible for a Discovery Card and can take advantage of some of the great benefits of using it, contact Discovery Health or visit their website to find out more.

To simplify its banking solutions, Capitec uses what it known as its “Global one facility” , an all-inclusive banking solution that means you don’t have to sweat over which account type you choose. When Capitec introduces its credit card, its Global One system will still apply. The Global One account is the only transaction account offered by Capitec, which does not categorize clients in accordance with their income levels. The limitations of this account is that Capitec does not offer an overdraft facility, a cheque book, or a credit card… yet.

Capitec plans to introduce a credit card in 2012. In the meantime, however, account holders are able to link a Capitec account to a credit card provided by another bank or financial services provider. The amount owing on the credit card account can be paid via internet banking (which is a free service provided by Capitec). All you need to do is make your credit card account a beneficiary, and no matter how much money you transfer, the transaction will cost you R2.75.

Why Capitec?

In a recent survey conducted by the Solidarity Research Institute, it was found that Capitec bank offers the simplest products as well as the lowest bank charges in the country. The survey compared 5 South African Banks in terms of the costs of personal transaction accounts, comparing charges levied by the four largest retail banks (First National Bank, ABSA, Nedbank and Standard Bank) as well as Capitec Bank. Capitec was the cheapest, with the most expensive being ABSA. The second cheapest was FNB, followed by Nedbank and Standard Bank being the second most expensive. Additionally, Capitec’s fees have not been changes since 2010, whereas all four of the other banks increased their fees in 2011.

Debit card transactions with Capitec are fee, and the fees for withdrawing from ATMs are also lower than those of other banks. With free debit transactions, this also means that you can draw money from various retail stores at no charge. At a Capitec ATM, the fixed withdrawal fee is R3.75, regardless of the amount that is drawn. At another bank’s ATM the withdrawal fee is R7. In comparison, an ABSA account holder will be charged R9 to draw R500 form an ABSA ATM. This means that a Capitec account holder will be charged less at an ABSA ATM than an actual ABSA client. Capitec also has the lowest penalty fee (incurred if a debit order fails due to insufficient funds) of R3.75.

Another benefit of choosing a Capitec account is that you can earn interest on the money in your account; balances of over R10 000 will receive 4.75% interest and balances under R10 000 receive 6% interest. The interest is calculated on a daily basis and is capitalized monthly. The interest rates on Capitec current accounts are actually higher than those on savings accounts offered by other banks. The interest earned each month can be sufficient to cover all the bank charges incurred that month.

Capitec bank was also recognized at the annual Ask Africa Orange Index Awards as the overall winner, based on a six month-long survey representing the opinion of 10 000 consumers. Capitec won over almost 100 other brands spread across 18 different industries.

With all these benefits of being a Capitec bank client, many people in South Africa eagerly await the introduction of Capitec credit cards.

Nowadays, not many businesses will provide you with any kind of loan or financing without an indication that you have a good credit record. This is why it is important to use a credit card or other such credit-type payment system over time so that you can develop a credit history and show that you are a good (or bad!) credit holder.

Tips to build credit using a credit card 

• You only need to have one type of credit card to build a credit history; you don’t need to have multiple credit cards from different places. A credit card can be a credit card from a bank, a petrol card, store credit card, or any other kind of card that allows you to make purchases on credit. In fact, having too many credit cards does not look good on your credit record and if you have too many cards to pay off every month you may not be able to make all the payments in full. This not only reflects badly on your credit report, but also means that you will be paying more on credit interest every month.
• Have a credit limit on your credit cards. You can request for your bank to put a limit on the amount of money you can spend on your credit card each month.
• When you use a credit card to build credit, you are essentially showing that you can be responsible with the money lent to you and are good about paying back the full amount every month. The most important thing to do is to pay your debts in full and on time every month without fail. If you set yourself budgeted credit limits, this shouldn’t be a problem.
• Never buy something on credit that you couldn’t pay cash for. This is a sure way to prevent you from accruing debts you struggle to pay.

The credit catch-22

Without a credit history, it can be difficult to get your first credit card because lenders want to know that you are a good credit holder; so if you don’t have credit already, who will give it to you? In situations when you don’t’ have a previous credit history, lenders will have to look at other factors to decide whether or not lending you money will be a risk to them. This includes:

• Your employment history: lenders will look at your ability to hold a steady job. If you have has a steady job for a long time it means that your income is more regular, allowing you to budget for credit purchases.
• Your bank account history will also show how you spend your money, how much money you have to spend every month, and how regular you are with payments.
• Lenders may also look at your history of residence; it is better to have stable residence as this means that your rent or bond payments should stay stable. If you own a home this could also work in your favour as the lender can see that you have some collateral in case of non-payments.
• Having utility bills such as gas, water and electricity in your name shows that you are accustomed to paying bills every month.

To get your first credit card, first try applying at the bank where you have a savings or checking account. They will be able to assess your financial history with them and decide if they would like to grant you a credit card or not. Another option is department stores, which are often all too happy to sign you up for a credit account at their store; just be wary of high interest rates if you fail to pay on time!

Which stores offer credit cards?

These days, most clothing stores will be more than happy to get you sign on the dotted line to open an account. In fact, they often offer various bonuses and rewards for doing so, such as getting money off your next purchase or being offered a free gift.

Some of the major stores where you can get your goods on credit are (to name but a few):

• Truworths
• Edgars
• Legit
• Mr Price
• Jet
• Woolworths
• Miladys
• Foschini
• Stuttafords

To find out if your favourite clothing store offers a credit card or account system, just give them a call or enquire within when you visit there next.

Resist the row and rows of clothes

Having a clothing store credit card sounds ideal, but you need to keep temptation at bay because many clothing chain stores charge high interest rates on your credit purchases. Particularly in the current harsh economic climate, many people are cash-strapped and resort to buying on credit. However, this is only prolonging the problem; in fact, it actually makes it worse. Buy now-pay later also means buy now-pay more.

On a 6 month payment plan, there is usually no interest charged unless the customer falls behind on the payment. In this case, interest may be levied at around 30% to 35%. On a 12 month payment plan the interest is charged at 2.66%, amounting to 30% to 35% per year. But if you default on payments on a 12 month payment scheme, you will be charged extra interest of about 30% to 35% per year. This means that you will be paying interest on interest, so if you choose to make use of a payment plan make sure that you can afford the monthly payments so that you don’t slide even deeper into the red.

Truworths claims to have the lowest interests among other major stores. Truworths has a 6 month account without interest, the store as well as loner payment plans of 12, 18, or 24 months on which an interest rate of 2% per month is charged, no matter if it is a 12,18, or 24 month plan. This works out to 26.5% per year.

Hints and Tips of being a savvy shopper

• At most clothing stores, you have the option of a 6 month account offered interest-free or choose an extended payment plan of 12 to 24 months for which you will be charged interest. It is in your…well… interest to stick to the 6 month payment plan to avoid running up a high tab of interest on your credit purchases.
• Beware of other fees – most department stores also charge you a monthly fee as lost card protection. There may also be other fees such as club membership fees or subscription fees for a monthly magazine. These costs may be optional, so be sure to opt out in case you can avoid paying these costs.
• The interest rates charged by the banks fluctuates dependant on the current interest rates in to broader economic sphere, so beware that you could be charge more on what is already owing in your account.

It’s not all doom and gloom in the world of clothing store credit cards. If you are a disciplined card holder, having an account at a clothing store can help you to get a good credit record. If you buy on account but pay instalments regularly you will be doing your credit records a favour by showing that you are a responsible credit holder.

The second kind of Internet credit card fraud in S.A is that of software and devises that are used to record your credit card details.  This kind of software is called spyware and operates by recording the strokes of the keys used, or screenshots of whatever you do on your computer.  This kind of spyware however can be thwarted by means of anti-spyware software being installed on your computer.

The third kind of Internet credit card fraud is through emails that are sent to individuals claiming to be from their credit card service provider and asking you to supply them with all of your details.  This is known as a phisihing fraud.

There are however ways through which you can protect yourself from fraudulent activities online.

1. Think of credit cards as cash.  You would not walk around with thousands of rands in your wallet for fear of it being stolen and therefore you should treat your credit card like that.  Therefore one suggestion is to have a credit card that you use specifically to do online purchases with and which has a lower credit limit than your other credit cards.
2. Never give out your credit card information to people that email you requesting it.  Your bank will never ask you to supply your credit card information in an email.
3. Verify transactions on your credit card statement whenever you get it.  If there are ever any transactions that you are unsure of, contact your bank immediately and raise a red flag.
4. Do not give your credit card to others to use.  This may result in them purchasing goods off sites that you are not aware of and that may not be secure.
5. Purchase only from reputable online stores.

Credit card fraud can happen in other ways too offline. One of the most popular credit card fraudulent activities that occur is via card skimming.  This can occur at atms, via card machines in restaurants in stores and in so many other ways.  It is therefore essential that you know where your card is at all times.  Should you have to give your card to anyone at anytime, make sure that you can see your card and that no one takes your card away from you.

With the advent of portable card machines, this is somewhat reduced however you still need to be cautious. It is also essential that you do not give anyone your pin for your credit card. This applies for both online and offline as should you give someone your pin and they remember or write down your card number, they will have access to all of the credit you have available through that specific card. No one wants to find that they have had all of the money used on their credit cards. So keep yourself protected by following the steps provided above and always being cautious.

This has also resulted in it being one of the most loved stores in South Africa and this in turn means that you can never go wrong with a gift card from Woolies as it is affectionately known.

One of the great things about Woolworths gift card vouchers is that they can be used for anything in the shop, whether it be for some delicious food from their food market, or to buy something for the home. So if the person you are buying for a person that is very fussy and you are not sure of what to get them, then these gift cards offer the perfect solution.

If the person you are buying for is regular at Woolies, then they may be the owner of a Woolworths store card. This store card offers great discounts in nearly every section of the store, some even amounting to 30 or 40 percent off. So if you combine this discount with the voucher that you be given or are giving to someone else, then it really does offer the customer sensational value for money.

With that said, lets take a look at what exactly is on offer in the Woolworths stores.

1. Homeware

Woolworths has become a top contender in the homeware market as they offer fantastic products are reasonable prices. From crockery, to bedding, you can be sure to find something that will inspire you whenever you use it.

What is more is that Woolworths realises that not everyone has the same taste and therefore offers a wide range of products to meet every home owners unique style. In addition to this, Woolworths understands that different seasons call for different types of home accessories, so they offer a range of summer and winter products that are in line with the latest trends for the season.

2. Beauty and Fragrance

This is a relatively new addition to the Woolworths offering. Traditionally, Woolies offered a range of bath soaps and body washes, however they realised that they were losing customers to competitors such as Edgars Red Square. As a result, they developed a range of beauty products to meet the growing demand as well as started bringing in name brands such as Clarins and Decleor. This means that your loved one can now even use their gift cards to buy their favourite fragrances and beauty products.

3. Shoes and Accessories

Woolworths was known before has having really old fashioned shoes, however through many customer surveys they found the errors in their way and have started bringing in a wider range of shoes that will meet the needs of any occasion. From pumps, to beautiful high heels, Woolworths have definitely improved the quality of shoes that they now sell. Their accessories have also improved greatly and some of the brands that are now offered in store such as Trenery have a personalised range of accessories for their customers.

4. Fashion brands

Woolworths realised that they needed to cater to a wider market and have introduced a number of brands to meet this need. These brands include Trenery, Country Road, Studio W. and r.e. These brands offer some fantastic quality products, however these products are a little bit pricier than the Woolworths brands.