Having more than one source of credit can help you achieve your financial goals, but using too much credit is not always a good thing. It can hurt your wallet as well as your credit score.
It’s totally normal to use a little bit of credit from time to time, but when it becomes an obsession then that's something we want to try and fix.
A lot of people spend lots of money because they believe spending money makes them happy. It may seem like buying what you want or need makes you feel better at first, but in fact it often creates a cycle where you keep chasing the high you get by shopping.
There are ways to manage your finances so that spending doesn't turn into an addiction. One of those strategies is living under budget.
Budgeting isn't just about putting together a list of expenses and trying to cut back as far as possible. Budgeting is actually a way to live a rich life. It's learning how to enjoy what you have while still keeping up with the bills.
This article will talk about some great reasons why limiting your access to credit can be a smart move for your personal finance. Let's look at some numbers now!
The numbers
In 2012, there were around 2 million individuals who had a premium processing VISA card.1 Out of all these cards, only 100,000 received free two-day shipping every month2.
One of the main reasons why you should consider offering premium processing is because it costs less money! Companies that offer premium processing services pay for the privilege of having their credit cards processed faster than normal, so they are typically much cheaper per-card.
In fact, some companies even reduce what they charge for premium service by up to 30%! This means that if you have a very expensive regular transaction card that you use for daily spending, you can still afford to use it but just need to look for more affordable premium processing providers.
During this more expensive option, your business does not need to tell Amazon why you want VPP, but here is something important to know about it!
A lot of people assume that because VPP costs more than standard pre-authorization, then it must be for large businesses. This isn’t always the case though.
Businesses can use VPP for many reasons, including getting extra credit cards, ensuring they have enough money in their account to pay for shipping, or just because they like the rewards program that card comes with.
But what most don’t realize is that even small businesses can use VPP!
That’s right – there are no size limits to how much VPP you will pay for! All you have to do is make sure you only ship from verified addresses and accounts, and you should be good to go.
If you are looking to save some money by using VISA as a tool for credit card spending, then premium processing is your best bet. This service allows you to pay an additional fee per-transaction to use their faster checkout process instead of having to purchase all of these tools seperately!
Mostly people use this service to reduce fees for each transaction. Because VISA charges a percentage fee for buying things online, being able to pre-purchase items can help cut down on how much they have to pay in fees.
During this review period, you can continue using your current credit card to access VPP. You will just need to confirm that you have premium processing with us before we can approve you for it as an upgrade.
We recommend staying within budget while using VPP so that we can assess whether or not you’ll be able to afford it in the long run. It is possible to use VPP even if you already have another form of express credit card processing, but there are some fees associated with that too!
If you would like to keep your current account, no worries! We still want to help you stay within budget, and we may be able to find you a lower cost plan than what you have now.
Now that you have an understanding of what VPP is and how it works, the next thing to do is determine how much VPP costs for your business!
VPP pricing varies significantly depending upon the number of transactions you send through VPP, as well as whether or not you are a New Year’s Eve customer. However, we can give you an average price per transaction if you're looking to save money.
We will also cover some key points about VPP fees so you can be prepared.
Even though there’s no longer an annual fee for VPP, you will still need to make sure your business is eligible for one before signing up. Only businesses that meet the requirements of being more than $5 million in yearly gross receipts can use VPP.
In addition to this, there are additional criteria that determine if you receive your credit card or not. These include factors such as how many employees your company has and whether those employees have access to a computer.
If these things aren’t met, then you won’t be receiving your credit card either! So it’s important to check out the VPP website very carefully to see what services they offer and if your business qualifies to use them.
Even though we recommend using VPP to process as many cards as possible, there is still one major drawback of this service: If you are ever declined due to insufficient credit, it can be difficult to find out why!
Mostly because Visible Card Processor does not hold onto your card, they do not have access to the same information that an issuing bank would normally provide when you are approved for credit.
This could include things like the CVV or the name on the account, just to name a few. They also will not know what kind of reward you received with the gift card or whether you overstated how much money you had in the budget.
Since VPP users don’t have access to these details, it becomes very hard to determine if their lack of credit was actually because you didn’t have enough funds available, you lied about something, or your account got hacked. It is almost impossible to tell unless you have direct contact with the individual who gave you the approval, so unfortunately, there is no way to solve that problem.
There’s one more crucial factor to consider when deciding whether or not to invest in premium processing- how much time will it take for you to get your money back?
It takes around two weeks, at most, to process refunds via premium processing. That means that if you are waiting for your refund after business hours, there is little incentive to use VPP since you would have to wait another week to receive it.
By using our service, though, you can rest assured that you will get your funds back within 2 business days! This gives you enough time to do anything you want to with the money – spend it, save it, deposit it into another account…the possibilities are endless.
And while some credit card companies may offer additional perks such as airline rewards or cashback bonuses, none compare to having your own line of credit built right into your favorite cards.
That way, you don’t need to go looking for those rewards anywhere else! We also don’t charge any monthly fees beyond what regular spending accounts pay. So, overall, this is a pretty cost effective option.
If you are interested in learning more about VPP, download our free form here.
