How to Adjust Your Budget after Spending Two Months Home

There was a time when the pandemic COVID19 spread like wildfire. Since the government had no idea of ways to contain the virus, lockdown seemed to be the best decision taken in favour of people.

Though it was impossible to prevent the virus from taking the lives of people, it could prevent the situation from going out of control. However, the worst impact of the lockdown was it decimated the economy.

You had to stop working, and you were dipping into your savings to meet your regular expenses. Some of the people could continue work from home, but they had to work on half-pay. Well, two months are over, and now the lockdown is being gradually lifted.

You all need to get back to the routine activity. Since your financial condition is no longer the same as it was before the lockdown, you will have to reassess your budget.

Continue with temporary savings

As you have spent months at home, you have developed habits of living frugally. You did your hair instead of going to the salon, and you prepared your meal instead of ordering it from a restaurant.

You have faced these temporary changes. Try them to work in the long run. As takeaways and home delivery facilities are open and soon you will be able to go to entertainment clubs, it does not mean you will be free mind to fritter away money.

If you stick to your new habits, you will be able to save some money to help you tide over during financial hardships.

Though you have started going back to your work, it will take some time to have money streaming in as it was before the lockdown.

Make sure that you get rid of your prodigal nature and reframe your budget according to your current financial situation. Lockdown period has taught you that you can make do with available things, and hence you should continue to spend less money even business picks up the spirit.

Re-evaluate your debt repayment plan

During the lockdown period, you would have got a moratorium period from your lender. Thankfully, you did not have the burden of paying off your debt when money was not coming in, but it was not an opportunity to have your debt written off.

Once the moratorium period expires, you will have to start making repayments, but they will be slightly higher this time due to accruing nature of interest.

Now is the time you should plan your repayments. A good rule of thumb says that you should prioritise debts with high-interest rates. For instance, mortgage payments should be prioritised to quick loans in Ireland.

Do not give up on an emergency cushion

You must have understood by now how important it is to maintain the emergency cushion. You must have felt that €1,000 would be enough in case any emergency pops up, but now you will be regretting why you could not have saved more. Savings and emergency cushion are two different things.

Savings will help you achieve long-term goals like building retirement funds and saving for a deposit size for your home. An emergency cushion, the other hand, will help you meet unexpected expenses, for instance, you may have a medical emergency, your car may need a repair etc.

At the time of reassessing your budget, you should try to have enough room for building an emergency cushion. Try to set aside at least 20% of your monthly income to the emergency savings account. It will not be hard to do so if you cut down your spending.

Automate your savings so that money goes directly to the account as you get your paycheque. Another benefit of the automation is it reaches the right place before you get any chance to spend it. Do not dip into these funds unless there is no emergency.

As your financial condition is not as stable as it was before, you will have to figure out ways to adjust your budget to avoid running out of money. No matter how much you are earning, it would be best if you do not stop setting aside money. If you are not left with some cash after meeting recurring expenses, you should increase your income sources.

Description: To revamp your budget after spending two months home, stick to your savings, build an emergency cushion and prioritise debt repayments.

What is acquiring: in simple words about how to accept payment by credit cards

accept payment by credit cards

What is acquiring in simple words and how does it work

In the previous XX century there was a giant leap in the development of science, engineering and technology. In parallel with these sectors, trade and the economy were booming. As a result of this development, a bank card was invented – a very convenient tool for storing and cashing money.

After some time, the functions of the card were significantly expanded, and now the buyer had the opportunity to pay in the store with its help. But progress didn’t stop there: today we can pay for goods and services with a bank card anywhere — from the store to the website — by any means.

Now let’s try to understand in detail step by step in all the intricacies of acquiring. Let’s start with the definition:

Translated from English, “acquiring” means “acquisition”, and in the banking sector, this term defines the system of accepting cash cards to pay for goods and services.

Such payments make shopping at the supermarket and the Internet easier and more affordable, and also save time when visiting the nearest store.

Millions of enterprises, organizations, shops use acquiring in their work for a number of reasons:

  • It is very comfortable;
  • The organization eliminates the risk of accepting a fake bill;
  • There is an opportunity to save on cash collection.

In turn, customers also loved this payment system, because there is no need to carry cash and there is no fear that the cashier will hand over the change incorrectly.

In fact, telling in simple terms that acquiring is not easy. Since this is a full-fledged integrated banking service, which implies a number of operations, such as technological, settlement and information services of a payment transaction company using a bank card. In this case, equipment used by the bank is used.

How to set card payment in the store? In order to fully use all the options provided by acquiring, you need to draw up an acquiring agreement with a bank that provides a similar service. This bank will install payment equipment (a special terminal, the so-called “pin-pad”) in your store, cafe, restaurant, club, and any other place that will accept bank cards in conjunction with cash desks.

What types of acquiring are

Trade does not stand still, and if some 30-40 years ago we had the opportunity to purchase goods in markets and in stores, now we can easily make purchases via the Internet without leaving home, or pay a bite in supermarkets plastic. Such freedom of action for the buyer is due to the desire of the entrepreneur to attract as many customers as possible into his business .

Banks are not lagging behind manufacturers in this endeavor, trying to invent ever new forms of cashless payments. Since the scope for trade is wide and diverse, acquiring can be of several types. It is difficult to say which acquiring is the most profitable. Depends on the situation.

What is merchant acquiring?

Merchant acquiring is widespread in retail outlets, cafes and restaurants, clubs, etc. Operations are carried out through special pos-terminals. At the same time, a fee is deducted from the recipient of funds in the amount established by the financial institution.

What is internet acquiring?

The  Internet acquiring system  speaks for itself: this type works on the expanses of the World Wide Web. No special applications or equipment are required to complete the operation. You ask “How to accept payment by cards on the site?”. To accept payment on the site by credit card you only need access to the Internet.

What is mobile acquiring?

In mobile acquiring, the operation becomes possible with a smartphone. When using mobile acquiring, there is no need to bind to a specific outlet.

Who needs acquiring and why

In fact, acquiring is beneficial for all participants in trade and financial relations.

For the consumer, cashless payments are convenient in that they do not need to specifically look for an ATM to cash out funds. If you are planning to make a major purchase, there is no need to carry money with you and worry that they can be stolen. When you want to use us routing number Coming to the store with a card instead of money, the buyer will not worry if he has enough cash to buy.

Acquiring is useful for retail outlets, restaurants, clubs and other institutions in that it reduces the risk of accepting false notes, saves money on collection, and also increases the prestige of the organization, attracts new customers and increases its income. A consumer who is accustomed to constantly paying with a card will consistently choose the outlets where this service is provided for purchases and will avoid a place where there is only cash payment.

Well, for banks, money transactions have always been, are, and will be profitable, because it is their job. And to attract customers, they are ready to provide a system of various bonuses, discounts on banking services, free training for employees in working with the acquiring system, etc. An entrepreneur is obliged to pay a commission to the bank for each transaction, and despite the fact that the bank itself also pays a fee to the payment system, and uses part of the funds for the development and maintenance of the acquiring system, its benefit from the provision of the service is obvious.

What steps do you need to complete for acquiring?

Payment for services through the pos terminal is somewhat different from the usual cash settlement system through the cashier, however, this process is not at all complicated if you remember its algorithm:

  • First of all, the cashier activates a bank card by transferring it through the terminal;
  • Data on the card holder are sent to the processing center of the bank;
  • Checking the balance of funds on the card;
  • If there are enough funds, the amount is debited from the card and sent to the operator’s bank account;
  • Two checks are issued – to the seller and the buyer;
  • The seller signs a check for the buyer, the buyer for the seller;
  • The seller must verify the signature on the check with the signature on the card;
  • Upon the expiration of the period stipulated in the contract, the acquiring bank transfers the money to the entrepreneur’s account, having previously deducted the commission.

Payment for services through the pos terminal is somewhat different from the usual cash settlement system through the cashier, however, this process is not at all complicated if you remember its algorithm:

  • First of all, the cashier activates a bank card by transferring it through the terminal;
  • Data on the card holder are sent to the processing center of the bank;
  • Checking the balance of funds on the card;
  • If there are enough funds, the amount is debited from the card and sent to the operator’s bank account;
  • Two checks are issued – to the seller and the buyer;
  • The seller signs a check for the buyer, the buyer for the seller;
  • The seller must verify the signature on the check with the signature on the card;
  • Upon the expiration of the period stipulated in the contract, the acquiring bank transfers the money to the entrepreneur’s account, having previously deducted the commission.

As you can see, accepting payment with bank cards in the store is quite simple, and when choosing high-quality high-speed equipment it’s also fast. In this case, there is no tedious reading of notes and search for trifles. The operation is clear, fast and error free.

To connect with the bank, an Internet connection, a telephone network or GSM-connection can be used. The most effective among these options is, of course, the Internet. GSM-communication provides the ability to accept cashless payments where, for some reason, the Internet is absent. In addition, such a pos terminal is equipped with a battery and can be transported from one place to another. This is very convenient when paying at the place of delivery. However, such a connection is the most expensive.

The pos terminal device includes a monitor, a keyboard for input, a card reader, a printing device (for issuing a check) and a pin pad, with which the client enters a pin code to the card.

Without a cash register, acquiring is possible in two ways – using a portable or stationary pos-terminal, or entering bank card details through the website. A SIM card is integrated into pos-terminals, with the help of which communication with the bank is carried out. Such terminals are capable of reading information from debit and credit cards equipped with a chip or magnetic tape.

How can I connect with a credit card payment?

Having a little understanding of what acquiring is, the question inevitably arises: how to connect payment with plastic cards ? In order to become a user of the acquiring system, you need to contact the direct provider of this service – to the bank. There you can get expert advice regarding the features of the system and how to work with it. You should also be provided with full information about the tariffs and terms of the refund.

In order to make payment by credit cards in the store, the entrepreneur must be registered as an individual entrepreneur or LLC , and also have a current open current account . The place of sale of goods or services must have stable access to the Internet.

If all of the above conditions are met, you just come to the bank and conclude an acquiring service agreement. The agreement must prescribe all the conditions, tariffs, the cost of acquiring , as well as the rights and obligations of the parties.

For security reasons, the bank may require from the entrepreneur evidence that the organization is not fraudulent and needs to install equipment specifically for the purpose of acquiring, and not fraud with plastic cards. The entrepreneur will have to provide a copy of the lease agreement for the premises, as well as photographs of the location of the outlet.

The whole process of paperwork can take about a month.

What to look for when choosing an acquirer bank

Having a little understanding of the acquiring system, a novice entrepreneur faces a new question: how to choose a bank to connect this service? First of all, you should carefully study the conditions under which various banks provide acquiring services. After analyzing all the offers, choose what suits you best.

  1. It will be useful to find out what equipment the bank provides. The speed of transactions will depend on the selected hardware and software. The least costly and most effective will be the use of a pos-terminal;
  2. Pay attention to what type of connection is used, since this factor also affects the speed of the operation. There can be several communication standards – dial-up, GSM, GPRS, Ethernet, Wi-Fi. The fastest is the combination of Ethernet and Wi-Fi (the answer comes within 1-3 seconds). Also, the dial-up and GPRS standards have a fairly high speed, and the latter will have to be additionally paid at the operator’s tariff
  3. Find out what payment systems a financial institution provides. It is more profitable for a novice entrepreneur to work with bank cards of clients with various incomes, because due to this, the client base will only expand;
  4. Read the acquiring service agreement carefully. In any agreement, the main provisions of the relationship between the consumer of the service and the financial organization are prescribed. A thorough study of the rights and obligations of the parties reduces the possibility of unpleasant surprises in the future. If the bank does not fulfill its obligations, then using the contract it will be easier for you to prove your case in court;
  5. Ask what services an acquiring bank provides. Such an option as installation of equipment and its subsequent after-sales service will be very useful to you. It will also be useful to train your employees to work on equipment. After the training, they should acquire knowledge about the principles of the terminal, about types of bank cards and details, about the customer service algorithm with a card, and also learn to cancel authorization, issue a refund, and determine the authenticity of the card;
  6. What financial conditions does the acquiring bank offer? Pay special attention to the period for returning profits to the company. This usually takes one to three calendar days. It will be important to evaluate your expenses when using the service. This amount will include the cost of installing and renting equipment and its maintenance, as well as connecting the service itself;
  7. Compare the rates for the service offered by different banks. As a rule, bank rates look like a commission charged on each transaction, which is expressed as a percentage.

Probably no one will be able to give you an answer to the question of which acquiring is more profitable for private entrepreneurs, only you can choose the best option for yourself by examining the offers of banks and analyzing your financial situation.

What does the acquiring tariff consist of?

Each bank has its own tariff schedule. Tariffs range from 1.5 to 3.0%, depending on the bank and the financial turnover of the enterprise. Everything is logical here: the more customers use a card to pay for a purchase, the lower the commission the bank takes from the enterprise for its services. At least that’s how Sberbank, Alfa Bank, VTB 24 and other banks work.

Additionally, the bank may charge a subscription fee for using the equipment. This fee is due to the fact that the bank needs to cover its own costs for providing paper for printing checks, paying for mobile Internet for terminals, training enterprise employees on the rules for working with equipment, providing information support, etc.

In addition, the bank provides the outlet with advertising materials, from which the consumer must find out that in this store there is the possibility of paying for purchases using a card.

Rights and obligations of the parties

Owning an acquiring system and organizing cashless payments in your store or restaurant implies the observance of certain conditions:

  • You should ensure the placement and safety of equipment for receiving bank cards in the territory of your outlet;
  • Under the terms of the acquiring agreement, you agree to accept cards for payment;
  • You agree to pay the acquiring bank a fee for the transfer of funds, which is specified in the contract.

In turn, the financial institution with which you enter into an agreement has its obligations to you:

  • Providing equipment for servicing plastic cards;
  • Training employees of the organization to work on pos-terminals;
  • Providing instant verification of a sufficient amount of funds on the card for the operation;
  • Compensation of the organization of the amounts paid by credit card within the time specified in the contract;
  • The provision of consumables, after-sales service, as well as prompt assistance in case of emergency situations in the operation of the equipment.

The benefits of using acquiring in business

Firstly, after connecting the acquiring service and installing the necessary equipment, sales will certainly increase. A purely psychological moment is triggered here. The buyer does not count the hard earned money. He easily and simply passes the card through the terminal and that’s it – the purchase is complete. It is much easier for people to part with virtual money than with real money. In addition, people love choice. By giving them the right to choose the method of payment for the purchase themselves, you increase customer loyalty to your organization.

Secondly, by installing a pos-terminal, you increase the security of financial settlements. Not always the cashier can determine the authenticity of the bill, especially at rush hour, when a large flow of visitors passes through the cashier. Bank transfer excludes the possibility of accepting a fake bill. In addition, if a store robbery suddenly occurs, the money transferred from the buyer’s card to the entrepreneur’s account will remain untouched.

Thirdly, working with an acquiring bank, you get access to discount programs and soft loans to this financial institution.

Fourthly, most banks provide free training for your employees. As a result, you get more qualified employees without spending your own money.

Disadvantages of Acquiring

With all the positive qualities and a fairly high degree of security of the acquiring system, do not relax and forget about the basic safety rules. Often, cardholders become victims of unscrupulous scammers. Of course, the state, the payment systems themselves , and banks are doing everything possible to protect funds, but the more sophisticated the protection becomes, the more cunning the scammers become.

Cards with a magnetic stripe were less protected from unauthorized reading, so their release was discontinued and cards with a chip with a higher degree of protection replaced.

As part of the training of enterprise personnel, the bank gives detailed safety instructions for accepting bank cards, which must be strictly observed.

Another significant drawback of the acquiring system is the commission and rent for the use of equipment charged by the bank. And here it is already to judge the profitability of using the system solely by the money turnover of the enterprise. At the same time, statistics show that even small enterprises with a modest income can increase it by about 15% by connecting a cashless payment system.

Conclusion

In general, acquiring provides a number of opportunities for small businesses to grow and develop, to promote goods and reduce costs, and also has a positive effect on the economy.

What you should consider before declaring bankruptcy

Someone might have his own reasons for declaring bankruptcy as it has its own pros and cons .but considering debt restructuring can prove very helpful for you. Referring to a debt restructuring company will help you because these companies deal with these kind of situations a lot, and they can provide you with solutions that you might not be able to think yourself under enormous financial pressure…..and that makes sense, it’s hard to think clearly when you are under such stressful situation.

Where bankruptcy can put you at ease as you will not have to pay some of your debts (not all of them) anymore, on the other hand it can cost you bankruptcy fee ( charges for declaring bankruptcy) also it can cost you your collateral’s, financial haircut will also be applied to your assests. It can also put a negative impact on your immigration process and even after discharging it still affects you from 3 to 6 years after.

For many of you for sure debt restructuring can help.

Debt restructuringis to reconsider or renegotiate the terms of the loan for the ease of the borrower who is facing financial distress and has not been able to pay off his loan on the terms applied by the lender previously, newly applied terms would be flexible than the previous terms. Some restructuring charges may apply for this purpose, Restructuring can be done by lowering the interest rate, extending the loan period, or by enabling the debtor to pay his loan later to recover from temporary bankruptcy. 

Debt-restructuring plan (DRP) will enable you to liquify your debts also restructuring is less costly than fileing for bankruptcy. Debt Restructuringcompany (our company) will examine your debt that you currently have and work with you to consolidate it.

Here are some benefits of restructuring your debt.

1) Restructuring your debt will allow you to pay your debt in lower payments with less interest rate.

2) These companies will consolidate with the lender for more flexible terms and conditions than those imposed previously. 

3) The restructuringwill help you maintain a flexible finance for yourself.

4) It enables you to invest your money due to flexibility in your finance that will release your capital.

5) These debt restructuring make efforts to understand your vision for your future to maximize your business enabling you to pay your debt.

6) Restructuring of the debt will allow you some more time to pay your debt with more installments over a prolonged period of time .that can help you to stabilizing your financial condition.

CONCLUSION

Bankruptcy may look like an easy escape from financial debt but it has its own negative effects. Debt restructuring is good for debt settlements as it takes the pressure off of your shoulder by handling your debt management for you saving you from bankruptcy and you can focus on growing economically investing your money in other business, bring prosperity in your life .Bankruptcy should be the last option as there are many alternative solutions available out there .