Prior to 1958 there were no universal credit cards. Each merchant made their own credit-granting decisions and issued their own charge cards. Actually, it was rare that a card was even issued in the early days. Other than oil companies, most merchants kept paper files that listed your balance and your credit limit.

All of that changed in 1958 when Bank of America revolutionized the consumer credit industry by issuing their blue, white, and gold BankAmericard. Bank Of America literally mailed credit cards off to millions of consumers, no application required. The idea took off and today, BankAmericard (now called VISA) holders number in the millions and VISA cards are issued by over 13000 banks around the world.

How VISA Cards Work

Every VISA card is embossed with a unique set of numbers that separate that card from every other VISA card in circulation. The numbers are not random. Here's how they work:

Digit number one is not significant.

Digits two through six identify the bank that issued the VISA card.

Digits seven through twelve or fifteen, depending upon the issuer, represents the account number.

The remaining digits are called "check digits". These check digits are automatically calculated by a mathematical formula that uses all of the other card's numbers as a key. The check digit is a security device that helps to ensure that the card is not counterfeit with a fictitious number.

The VISA Card "Mag Stripe"

The black strip on the back of the VISA card is a specially-encoded magnetic tape that can be read by the card readers at the checkout stand.

All mag stripes contain the account number as a minimum. Different VISA card issuers add their own additional information to the stripe. This may include your full name, ATM "Fast Cash" preferences and more.

How The Merchant Gets Paid

When you use your VISA card to make a purchase, the merchant's computer payment system contacts the VISA network and transmits the information that's encoded on your card's mag stripe along with the amount of your purchase.

The VISA network contacts the computer operated by the card issuer to check your available balance (called your "open to buy"). If you have enough open to buy to cover the purchase, your balance is adjusted to reflect the purchase and the merchant's bank account is credited with the amount you spent less a service charge.

All of this happens in just seconds and you can tuck your VISA card back into your wallet and keep on shopping!

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One name that is recognized nearly everywhere in the world is MasterCard. The familiar red and orange circles have been a part of this organization’s identity since its beginning. What started out as Master Charge in 1967 changed in 1979 to MasterCard and after that to MasterCard International. Most recently, the name has been changed to MasterCard Worldwide. Although the name had changed several times, the organization’s commitment to service has not.

Known primarily for its credit card, MasterCard Worldwide is an organization consisting of numerous financial members from around the world. Among other things, these members have agreed to be issuers of the card known as MasterCard. Members and consumers alike benefit in many ways by being associated with MasterCard. Among most important benefit is that MasterCard is recognized globally and accepted at millions of establishments in the US and abroad.

When you choose MasterCard you have plenty of options. You can apply for a basic credit card that you can use anywhere that accepts MasterCard. If you prefer to keep a closer eye on your budget, MasterCard offers a debit card. The benefit of using a debit card is that charges are only approved IF you have funds to cover the full amount of the purchase.

Another option you have with MasterCard is purchasing personalized gift cards and prepaid gift cards. These types of cards make great gifts when you’ve run out of gift ideas. They’re also safer to use than cash and they offer more flexibility than you’d get if you purchased a gift card from one particular store. These gift cards are available in many denominations and need only be activated prior to use. They are accepted anywhere that accepts a debit-type MasterCard.

The newest addition to the MasterCard family of cards is the PayPass. With the PayPass, you need not swipe your card, enter your PIN or sign a receipt. All you need to do is tap the card against a PayPass reader and your transaction is complete. This technology is only now in the early stages but over 23 million establishments are trying it out. And early results are promising!

With MasterCard, you can make purchases, pay your bills, get money from an ATM and more. There are so many benefits associated with using your MasterCard that it really doesn’t make sense to use any other card. If you are part of the minority who don’t yet have a MasterCard, perhaps it’s time you apply!

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College credit cardscan be a valuable tool for students to build up an adequate credit history. However, without a sound understanding of how credit cards work, or about how to maintain personal financial responsibility, students could find themselves getting into a great deal of debt. By paying attention to the fine print on credit card applications, particularly the expiration date for introductory APRs, young people can make the best use of credit cards for college students while avoiding the worst.

If you've recently started college, you may not have given much thought yet to building up an adequate credit history, or to avoiding a bad one. But you should. Credit history is absolutely vital for some of the most important purchases you'll need to make in life. Without good credit, you'll find it difficult to buy a house, be approved for any kind of loan, or even become employed. So before applying for any college student credit cards, first make sure that you have some sound financial principles and an awareness of your college credit card options firmly in mind, in order to make the best of your credit card and avoid the worst.

Credit cards for college students are marketed to appeal to student interests. College credit cards typically come in a variety of styles and school-specific designs in order to give you the idea that you're "personalizing" your college credit card. Even if you look beyond the appeals to school spirit and a sense of community, you probably still won't see anything too out of place. College student credit cards often come with a  0% introductory APR rate, some  cash back options, "points" systems, and even rewards in the form of gift certificates or discounts for retailers targeting the 18-25 year old demographic. Retailing categories are commonly video rental stores, concert promoters, delivery services and restaurants, among others. All of this makes college student credit cards sound fairly irresistible, until you take a closer look at the fine print.

Remember, that 0% introductory APR is just that -- introductory. After a six-month period, the APR more often than not rockets up to anywhere from 17-18%, among the highest rates available on top-ranked credit cards. It's very easy in six months (and especially on a limited college budget) to become used to letting your credit card debts slide a bit. After all, a college credit card is there for you when you don't have other money handy, right? But many times young people often find to find that their steadily increasing debt rather is rapidly becoming unaffordable. Add that to the general problem of typically low income, student loans, as well as regular, unavoidable cash needs in the form of textbooks, dorm and cafeteria fees. And let's not forget about a social life! You can begin to see the problem with unwise use of credit cards for college students.

This is not to say that college student credit cards are necessarily bad things. Handled properly and in conjunction with an otherwise good academic performance, a college credit card can be a valuable asset to you in the future. A college credit card can provide proof in the event of a credit or employment check that you're financially responsible and worthy of being trusted with the loan you might need in order to buy a house or a car a few years down the line.

And, as long as you do the research, there's no reason not to take advantage of some of the rewards programs college credit cards offer, or even to show a little school spirit with your credit card design. But the cardinal rule here is to show financial responsibility. Draw up a budget and stick to it. Even if it means scaling back on a few planned purchases or some trips to local clubs, it's better to go without a little bit of pleasure now rather than face heavy APRs and overwhelming debts later.

And, let's be frank ... if you're too worried about your ability to stick to a budget, consider waiting a few years before applying for a college student credit card. Credit cards aren't going anywhere, and you'll be able to find many of the same great offers later, once you have the financial wherewithal to deal with some of the hidden pitfalls.

by : mailo berz

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With more than a decade of experience in marketing, ranking from pay-per-click to direct mail, I’ve seen a lot of failures and far more successes when it comes to marketing.
Today, the art of marketing is far more complex than it once was. However, many of the same basic principles still apply. Too often, professional marketers and small business owners overlook the basic techniques that have separated successful campaigns from those that never turn a profit. Here is my all time list of effective marketing tips.
Know your audience. Successful campaigns get that way because marketers know their audience. They fully understand their needs, how to help meet those needs and how to create demand. Knowing and understanding your audience through proper market segmentation means a well targeted campaign that generates a profitable return.
Focus on the offer. A marketing offer is the driving force of marketing promotions that drive results. In fact, market testing has proven that the offer is the most significant criterion for conversion. Focus on your offer if you want to be successful.
Split test. Never ever run a campaign without testing something. One of the most common is a split test which allows you to simultaneously test two versions of something. It can be a web page, post card, or email. Split testing is essential for improving performance.
Never work alone. The most creative ideas come from working with other creative people. Don’t feel like you need to have all the answers or great ideas. You may start with an idea, but an open dialog with creative individuals will make it better.
Don’t sell on price. I’ve seen so many marketers fail because they sell on price alone. This leads to a discounting war, lower profitability, and often bankruptcy. Rather, focus on creating so much value that the perception of price becomes insignificant.
Consistent messaging. Consider the entire user experience before you launch a campaign. From email to website to offer, is the prospect having a consistent user experience? If they are, your campaigns stand above 98% of others.
Create value after the sale. As marketers, it’s our job to understand our market segment and build relationships, not dump people off at the front door of our store and walk away. Focus as much of your energy on building relationships with customers as you do prospects.
Test. Test. Test. In addition to split testing, you should consider multiple forms of testing in each marketing discipline. For direct mail, test headlines, offers, copy, time of direct mail drop, etc. Consider testing a life long mission.
Integrated Marketing Works Best. You can’t rely on one form of marketing to carry you to success. It’s okay to generate most of your leads or sales through PPC marketing if you will but what happens when that dries out? Use multiple media sources to meet your goals.
Nothing can replace experience. You can run out and hire all of the best consultants in the world, but you still have to do the work. Nothing can replace actual experience. It will make you a stronger marketer and more successful in the long term.
Apply these helpful marketing tips if you want to be truly successful. These techniques and tips are applied by successful marketers on a daily basis. The result is an ever growing success rate of marketing success.

by;Robbinsville

 

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  The first and the foremost thing that is required to pass an journal entry is sticking to the basic principals of accounting. Mear knowledge of it will not help one must learn to practice it and simultaneously learn to apply it.
Once asked any body will tell the basic principals of debit and credit but when it comes to applying them and passing a journal entry they fail to do it.
Hence for the ease of application I had read and learned from my teacher an different way of presenting the journal entries. Which I have summarized below:-

1. In case of an Asset :  One must Debit an increase in the value of asset and credit the decrease in the value. It is because of this principal that an asset is credited while passing an depreciation entry.
2. In case of a Liability: Debit  decrease in the account and credit  increase in the account. For example: in case of an introduction of capital two accounts will be affected and they are cash account and capital account, cash account is in the nature of asset and capital in the nature of Liability (by virtue of business entity concept), when cash is brought in the asset increases and capital increases hence by following the above rule increase in asset should be debited and increase in the value of liability should be credited, hence the entry will be cash a/c Dr. to capital a/c.
3. In case of Income/ gains: The rule is similar to the rule that is applied to liabilities i.e. credit increase and debit decrease.
4. In case of Expenses/ losses: The rule is similar to assets and hence the increase in expenses should be debited and decrease in expenses should be credited.

A few examples of what we have delt with so far:

• Entry for Outstanding expenses: Expenses A/c  Dr.

To Outstanding Expenses A/c
How: Expenses as explained in rule 4 should be debited if there is an increase and following the accrual system of accounting the outstanding expenses should be recogonized and hence the entry is made following the rules 2 and 4 as outstaning expenses are in the nature of Liabilities

• Entry for accrued incomes: Accrued Income A/c  Dr.

To Income A/c
How: Accrued income is income due but not received and hence it is in the nature of assets to be specific Current assets and hence rule 1 shall apply and Income will be as per rule 3.
You are free to ask and comment on it.
There still more to come on certain other important but basic issues.

By;Apoorv aggarwal

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The foreign currencies market can be very intimidating, especially for those who are only starting out in the field. Beginners often find themselves losing the money that they invested on bad trades and on the wrong currencies. However, that does not change the fact that it is, indeed, a very lucrative field to trade in. Those who are looking to make money out of trading should definitely give this field a try.

While there is no foolproof plan that will work for everyone, there are different trading tips that beginners may follow in order to increase their chances of making money out of trading foreign currency. These are very simple tips that will do every investor good, no matter what their experience or skill level may be. 

Here is one good forex trading tip that will work wonders for beginners and experts alike: learn what you need to know and use it on your transactions. It will be very foolish of you to start trading without even taking the time to learn the basic of the trade. Just like with other businesses, you should ensure that you fully understand how the field works before you try your hand in it. Doing so will help you choose which transactions you should get into, and help you minimize your losses during unfortunate situations.

You should also see to it that you keep yourself updated, both in the tools that you use to aid your trade and on the techniques that you use to undertake your transactions. Trading tools and technologies change as the condition of the market changes. In order to continue making money out of fx trading, you need to ensure that you are using the best tools and the best techniques.

Finally, you should ensure that you gear yourself with the facilities that will enable you to gauge the market as accurately as possible. After all, you would be basing your decisions on the way that market trends and indicators are moving. For this reason, you should ensure that you measure the fx market properly, in order to give your trading decisions the best foundation possible.

by;Smith

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Forex trading can be a daunting task than stock trading. One thing that you should know is that forex market is actually simpler and straightforward than the stock market. The first thing to do is to open a trading account with a retail broker. There are some paperwork activities that are involved when you are opening an account. You are required to provide some basic information on your financial status. When your application is approved, you can fund your account so that you can begin trading. Another important issue is that you should choose the contract size and leverage that you want to use when trading.
In forex trading, leverage is important as it refers to the ratio that you want to invest in the trade. Some of the popular leverage ratios include; 10:1, 20:1, 50:1, 30:1 and 100:1. Trading with a higher leverage increases your profits as well as losses. It is important to understand the currency pairs. Within forex, each market measures the value of a single currency against another currency. An example of this is in EUR/USD, the value of euro is measured in terms of US dollars. Examples of other markets include USD/JPY, USD/CHF and GBP/USD. Note that the order of currencies is very important. You can either buy or sell any currency pair. All you have to ensure is that you sell the currency at a better price that will generate good profit. For example, you can purchase GBP/USD. In this purchase, you are aiming that the pound will have higher value than the dollar.

by:Timothy stevens

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