A secured card, used primarily for shopping and bills collection, is a secured credit card card with a bank logo affixed to the back. The secured credit card is issued by a bank which issues the card at a small fee. A secured credit card is generally issued by banks and banks are most commonly located in the United States, unless a bank has in its national consumer credit card safety program certain restrictions including additional fees and limitations.
Here are some rules to obtaining a secured credit card.
Make all your payments in an unsecured manner.
If any of your checks or other amounts are unpaid and the funds cannot be sent to a 401(k) or other alternative source, make sure that you can spend the payment using a secured credit card.
Before applying for a secured credit card, review all the terms and conditions in the card agreement and read carefully in order to know what you are covered for any money you must owe.
Should you fail to pay your credit card bill on time or not from within seven days of receiving your secured credit card, you are literally taking a giant debt that will total up to $2,-1 years to repay – and be a burden to your family and lifestyle for all eternity.
A secured credit card is most suitable for people who have an unsecured credit history and make an excellent credit history and make a timely payment, or if you have trouble making a small income stream, or a credit card that is widely accepted for emergency cash purposes.
How it works, is like a cash advance, and a bank or a credit card interests the customer once the secured credit card is deposited in their account. You are paid monthly by a minimum deposit, or B deposit, that is equal to a percentage of the credit line.
The bank or credit card company has control of the B deposit and it is to be used for making the monthly payment. If the B deposit is less than the deposit limit offered by the secured credit card, the bank or credit card company will generally take that B deposit and make an unapproved offer to the borrower, which is normally at a higher interest rate but not necessarily higher.
A secured card should be used when you don’t have the B deposit or when you have more than sufficient B deposit. Secured credit cards should NOT be used for first time buyers. They have higher fees and lower acceptance rates for those who have less than a B deposit and pay a bit more than the maximum B deposit.
For those who are pre-approved for a secured credit card as they are preferred by some of their potential customers, they can request that the card be changed to an unsecured card.
Any new card you receive must be kept in a safe place and never in a place that is used by criminal and/or credit card interests as secured cards with no security guarantee your security.
If you consistently default on your mortgage payments, the secured card company will view your credit standing as negative and will deny you access to your vehicle and/or mortgage payment history. Keep this in mind when applying for a secured card.
Credit card processing times and security features
When you apply to a credit card processing service a company providing credit card processing services you fill in the form as a user as stated. Your card number is verified by a credit card processor at the time your transaction is processed. Your transaction confirmation code is posted and stored at the time your transaction is processed. This confirmation code is valid only if you opened an activation key that can be used to open an encryption key in order to protect your identity (see below for explanation of how this might be used). The only time you normally need to provide an activation key is for if your transaction is received during a credit card transaction.
In order to serve the needs of credit card processing service you will need to offer services to the credit card merchant and the credit card processor that are supported by the various companies providing them services. Thus you will provide a merchant account with a card processing service for every merchant or processor that has their own merchant account that you are associated with. You can run a processor account for free or try to set one up for $25/month at www.creditcardprocessor.com.
A major benefit of a merchant account is its ease of service comparison. It is possible for most card issuers to set up merchant account with about 10-15% profit margin in one year, compared to about 50-75% profit margin after 35 consecutive months as in other credit cards processing services. The comparison will help card issuers to decide which merchant service to use and which to stick with.