Users Of Credit Card Merchant Accounts: What Is Your ‘Red Flag Rule’ Risk Level?
The Federal Trade Commission (FTC) is implementing a 'Red Flags Rule' program to combat identity theft. Since credit cards are such a target for identity theft, any business that uses merchant accounts to take credit cards will be required to produce a written Identity Theft Prevention Program under this rule. The only real question is whether your business is considered to be at low risk, or high risk, for identity theft activities. If your business is determined to be a high risk, then you will have to construct a comprehensive plan, which could be expensive to develop and administer. However, for 'low risk' businesses, the FTC has developed a streamlined program to implement.
To determine the risk level for your business the FTC wants you to ask yourself these questions:
Do you know your clients personally? If you have a level of familiarity with your costumers, it is unlikely that someone will be able to impersonate them. This would be considered low risk.
Users Of Credit Card Merchant Accounts: What Is Your ‘Red Flag Rule’ Risk Level?
Do you usually provide your services at your customers' homes? Identity thieves tend to be more transient in order to avoid being caught. If you deal with regularly with customers in their own homes, your business could be considered low risk.
Have you ever experienced an incident of identity theft? If your business has been established for a while and nobody has complained that their identity was fraudulently used to make a purchase, then your business is low risk.
Are you in a business where identity theft is uncommon? If there are no reports of identity theft in your industry, and it does not seem to be a current target for this criminal activity then you can consider your business to be low risk.
Users Of Credit Card Merchant Accounts: What Is Your ‘Red Flag Rule’ Risk Level?
If, on the basis of these questions, you can demonstrate that your business is in the low risk category then you will be able to fulfill your requirements under the 'Red Flags Rule' by filling out a simple form describing the identity theft prevention measures that you have in place.
Changing existing credit account from individual to joint?
My girlfriend and I, to take advantage of 36 months no interest, signed up for a CompUSA credit card to buy our new $1700 Plasma TV. We have only had it for 3 months and have already paid off half of the TV. We got the credit card in my name since I have better credit. However, since she is making payments on the card too, she has expressed interest in making the account a joint account. Now, we went through a similar situation with Target and after having the card for some months they were able to make it a joint account. However, after calling HSBC (AKA CompUSA) and talking to someone who could barely speak english, we were informed that they couldn’t turn the account into a joint account despite there being a joint account offering at the time of application. If I talk to the right person can ANY company technically turn an individual to a joint or do some companies just not want to change them?
I do not wish to add her as an authorized user because that would not help to improve her credit. I want her to be an actual joint user so that her credit looks better as we pay off the purchase(s) together.
On what factors they may have rejected my Citibank credit card application?
I have an account in Citibank with healthy balance and regular inflows. I have taken a few loans in recent times and did not default in payment. My credit score is around 560.
I also use my dad’s credit card (joint account) with huge credit limit and have excellent repayment history since I’ve been paying on this card for over 14 months. This would have been my own first credit card.
I’m in employment/business for last 3.5 years after completing college.
If you haven’t defaulted on your loans, your score should be higher than 560. You application might also have been rejected because you have too much credit. I recommend you request your free annual credit reports and see what’s on it.
I don’t know legal-wise if they have to do that, but you should be able to call them and tell them you want to add your gf as an authorized user.
Just got A&L Premier Direct account with terrible credit ratings, joint application, why?
Myself and my girlfriend both have terrible credit ratings due to bad credit handling when we were around 18 years old, its so bad that seperately, we find it difficult to even get a basic bank account, nevermind a current account, neither of us can get a credit card, contract mobile phone, or anything like that. We applied as joint applicants for the alliance and leicester premier direct current account and unbelievably were approved!!! Im just wondering why, its not like one of our credit ratings is aiding the other as we both have terrible ratings, why the acceptance together when we cannot get anything apart? UK only please and please, no criticising our bad credit is from 5/6 years ago and we are in the process of sorting it out.
Thanks for legitimate answers, i will choose top answer.
On a joint account, they can go after each of you for the whole debt .. plainly having two people they can chase means they are more likley to get their money back …
Also, if you have regular wages coming in, this may have made the difference .. plus the fact that you have no recent defaults and are getting on top of your debts is also likley to have improved your ‘credit rating’ ..
Finally there is the fact that Banks do, occasional, still make mistakes ‘in your favor’
.. for example, if you changed address 3-5 years ago, they may not have discovered your old debts (yet)
SO DON’T, whatever you do, ‘bounce’ a payment, go into Overdraft or run up some massive Credit Card debt .. in fact, don’t do anything (such as ask for an Overdraft ‘facility’ or a Personal Loan), that is likley to make them re-check your Credit Rating …
It is NOT unknown for a Bank to arbitrarily close an account and tell their ex-customer that they are ‘unwelcome’ …
Is there a bank account with an additional cardholder facility? (NOT CREDIT CARD)?
My partner and I need a joint bank account for bills for house etc. However, he has excellent credit but my history is poor, so we have been refused a joint bank account application. Is there another form of account we can have in his name with me as an additional card holder? We don’t want an overdraft, or cheque book. Just a basic account that we can put money into and withdraw if needed. Any advice would be great.
Whenever I’ve had someone else have my debit card, then they just let me put the name on the account after. I have only done this at small town banks, though, so maybe that’s why.
Still, if there is a “smaller” more local bank around you, you may want to try there.
Are credit card companies liable to set up the account according to the information on the application?
A credit card company carelessly and erroneously issued joint credit in the name of, and to an address, of 1. someone whose name, signature and SS# was not on the application, and 2. someone who did not sign the application.
Do I have any legal argument that me, the person who did sign the application, accepted/used services (dental work) under the false pretense/or with the implied understanding that the account would be set up according to the application?
Are you asking since the credit company put the card in the wrong name, are you liable for the charges (the dental work you had done)? You can certainly get the card changed, as is your right but if your looking for a way out of paying for your charges, well good luck with that.