5 Takeaways That I Learned About Loans

What is a Reverse Mortgage Loan? Reverse mortgage is a special type of loan. It is also referred to as home equity conversion mortgage. The elderly are the only people who are able to get access to this type of loan. Note that they are also supposed to be sixty two years and above. In addition, these kind of people must own a home. You are not required to pay monthly payments with this type of loan. On the contrary, when the loan payment is due, all the monthly costs such as mortgage insurance premiums, mortgage interests and lenders fee are paid. This loan is repaid when a home owner dies. The loan is also payable when home owners vacate permanently. Other instances are when the home owners decide to sell the property. The home equity built is only accessible if the home owners get reverse mortgage loans. Although there are no restrictions to how reversed mortgage loans can be used, they have a lot of benefits to the old people. When people reach the age of sixty two, they become inactive. This implies that they are inactive. Old people are not only prone to diseases but also grow weaker as time elapses. Although some of the elderly rely upon their businesses for finances, others do not have. This means that reverse mortgage can be quite useful during such times. Bills such as medical can also be catered for. All the daily life expenses can be met by reverse mortgage loan. The name of this type of loan distinguishes it from all the other type of loans. It is a reversed loan. Monthly payments are not paid by the borrower. Instead, it is the lender who pays the borrower until the time when the home owner dies, vacates or sells the house. This loan has been common within the past years. Older people are making use of it by all means. Some of the advantages of reverse mortgage loan are as follows.
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One; old people enjoy the serene environment of their home as they age. Disturbing the old people always irritates them. Since they tire quickly, living and aging in a familiar environment gives them a peace of mind. The old people love quiet and peaceful environment where they can rest, host their families and do home related activities like livestock keeping. The loan is repaid when one decides to move out of the home.
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This loan is preferred because the amount of money borrowed increases with time. Even as time goes by, the age of the home owners increase. Since home equity tremendously increase so does the chances of borrowing money. The money is used to pay off debts, long-term care as well as maintenance and repair of certain things around the home. In conclusion, home owners still retain their home tittles despite having reversed mortgage loans. This is only possible until the owners die, relocate, sell or when loan term expires.
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Everything You Should Know About Merchant Accounts

There are benefits and drawbacks with regards to accepting credit card payments much like any other businesses. To help you come up with a more informed decision whether you should get merchant account service or not is the reason why we talked about both. No matter what the cost you incur, you are going to soon discover that its benefits easily outweigh its negatives.

As a matter of fact, there are several advantages that come with such like for instance, it can help in boosting your sales. Believe it or not, credit card orders in this modern time are a lot bigger compared to cash and check orders. Apart from that, there’s going to be faster checkout for customers and as a result, it speeds up the checkout line because accepting credit card payment is done almost in an instant and in addition, it is a lot cheaper to accept these kinds of payments because of the big order amounts.

Dealing with cash requires more security because the involved risks are so high. Dealing with big sum of money may possibly lead to problem as well and there is a chance that employees can give the wrong change amount. In comparison to credit card payments, your employee simply needs to swipe the card and the exact price will be calculated automatically by the machine. Last but not the least, you can offer more payment options with credit card and with that, it decreases the odds of losing sale.

However, you have to know that the system also has some pitfalls. One among which is the cost as accepting credit card payment will involve cost like what other cost that the business incurred. But you must know that any good business approach will cost your business. Apart from that, there is a possibility that you might deal with customers who make use of fraud cards but this is actually a rare scenario this is something you shouldn’t worry a lot.

Credit card industry concluded that some businesses are dealing with high risk transactions and that they pose higher risks compared to traditional businesses. In regards to this matter, the processing company should manage the rewards and risks, the merchant has to be fully equipped in doing business without having over inflated charges. On the other hand, for the merchant account service providers, there are some factors they’re considering before they see a business as high risk like for instance, the business is involved in morally ambiguous industries, using risky sales methods, selling services and products to countries abroad, process card not present transactions, transacting with high average dollar amount and the likes.

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What are High Risk Merchant Accounts?

Businesses must obtain a merchant account with an acquiring bank of a financial institution that processes credit card or debit card payments on behalf of a merchant before accepting credit card payments. A merchant account can either be a low risk or a high risk one. Most credit card processors would prefer to handle low risk merchants because it is safer to deal with than high risk merchants which only a few processors are willing to accommodate. A high risk business is something where you expect a high number of chargebacks. Chargeback is actually protection for the customer that is provided by the issuing bank. In other words, when a cardholder file a complaint regarding fraudulent transaction on their statement, the issuing bank makes an investigation into the complaint. When upon investigation it will be proven that the transaction is indeed fraudulent, the bank will refund the original value to the cardholder. So from the merchant’s point of view, if you do not prove the transaction to be legitimate, the bank will take back the entire value of the transaction from your account, along with an addition fee. This chargeback fee will range from zero to a hundred dollars depending on the merchants bank sponsoring your account. However, if the cardholder complaint is proven untrue no refund is requested from the merchant, though additional processing fee may be charged.

Chargebacks are really dependent on several factors including the kind of products or services that the merchant is offering. It could be a superficial factor based on the business industry or clientele while other are related to the merchant’s business practice.

A merchant is low risk if it only accepts one currency and they only sell low risk items like books, office supplies, home goods or clothing. This includes that your chargebacks and returns are kept to a minimum. Casinos, gambling, gaming, VoIP or telemarketing, pharmaceuticals or drug stores, adults products or activities, travel accommodations, attorneys, dating services, magazine subscriptions, and e-cigarettes are just some of the high risk products and services today. And though processors will consider each business on a case-to-case basis, not all of the above industries will be considered high risk by all processors, likewise, many additional businesses that are not listed above could be considered risky.

Traditional low risk merchant accounts can quickly be terminated if chargeback levels become excessive. When this happen, the only option left is to secure a high risk merchant account with exorbitant fees.

Whatever type of business you are in, chargebacks affect your business more than the category of your account. So it does not matter so much if you are a low risk or high risk merchant, a fraudulent transaction is the one that is more hurtful to your business.

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