Paypal Offers New SMS-Based Money Transfer Service

PayPal has just launched a new service called PayPal Mobile. This service allows a PayPal user with an active mobile phone account to send a payment to another PayPal account -- even another mobile user with a PayPal account. Of course the PayPal user at the other end of the transaction could be either an individual or -- more importantly -- a merchant.

This system clears the way for PayPal to enter the potentially massive "micro-payment" market. With PayPal Mobile anyone with a PayPal account could pay electronically for goods purchased from any merchant also having a PayPal account. Of course this capability already exists, but most PayPal users are stuck with making PayPal transactions using their computers.

** SMS-based payment system

PayPal Mobile is mobile phone and SMS-based, which means you use text messaging to send the payment. That completely frees the user from dependence on his or her computer to access his or her PayPal account.

PayPal Mobile payments are sent by sending a text message to 729725 (paypal), and then keying in the amount and destination of the payment. The destination can be another mobile number, a regular land-line number, or the person's email address (the one registered with PayPal).

The new system currently only works with mobile phones in the U.K., U.S., and Canada, but is expected to expand to other countries once the bugs are worked out.

To make use of this system, you need an active PayPal account. Login into your account and go to your Profile. Click on Phone, and then click on the "Activate Payments" link. You will be asked to enter a PIN, and will be phoned at your number to confirm your activation.

Normal land-line numbers can be activated too, but of course, text messaging will not work with these. To send money by voice or keypad using your land-line, you call 1-800-4PAYPAL. Once the payment is sent, the person you are sending the money to will be notified by either an automated phone call, or by email.

** Potentially valuable for offline merchants

The important thing to notice about this is that it lets a merchant associate a normal land-line number with his or her PayPal account. So say you're an antique dealer in Toronto. A customer wants to buy something from you and says "Do you take PayPal?"

"Sure", you say, "Just send the payment to 416-123-1234". While he's standing in front of you your customer uses his cell phone to call PayPal and has the payment sent to your number. A minute later you receive an automated call informing you of the payment. And just to make sure, you check your online account to see if the funds have been transferred.

** PayPal is targeting mobile users

It is fairly obvious who PayPal is targeting with this new text messaging payment service. It is a perfect fit for cell phone users who regularly use text messaging, and who also regularly buy things requiring fast, hassle-free micro payments. Digital music is the most obvious example.

Other micro-payment systems are typically tied in with cell phone companies, payment processing companies that focus on merchant services, or in-house solutions like those provided by iTunes. That's all right if you deal with a limited number of vendors. But for customers who want to use this service for several vendors, they are forced to use a mish mash of payment processors depending on the merchant they are dealing with.

Clearly there is a need for a reliable third party system that stands apart from specific merchants, specific banks, and specific credit card companies. A payment processing service provided by a broadly-used and legitimate money clearing house like PayPal seems like a pretty good idea, and one that has the potential to seriously increase the PayPal user base at the same time.

Rick Hendershot publishes Linknet News | Reduce mobile phone costs - Free tips and secrets | Free sms service - Send gsm sms to German mobile phone users.

Credit Card Balance Transfer Offers

Indeed, credit card companies will do whatever they can to compete with each other. As one company thinks of better strategies, features, and other programs, another will conceptualize apparently better offers that greatly exceed those of its competitors.

Interest rates are the favourite points of competition of most providers. Each one has its own claim of what a better interest rate is. As soon as the enrolee has been convinced, he will then be encouraged to avail of the balance transfer offer. But are these types of offers really beneficial?

Balance transfers in credit cards happen when you transfer your bills from another credit card to another one which claims to impose lower interest rates.

However, in doing so, you must take extra precaution. While the procedure appears to be that straightforward, there are a lot of things that you have to take into consideration first.

First, you have to check if the low interest rates in the other credit card will, in fact, persist. More often than not, providers lure customers by giving a very low introductory rate. A few months after, higher rates will start to take effect.

Thus, before you decide to transfer all your balances to one credit card which apparently has lower rates, make sure you have read the fine prints in the documents being presented to you.

Oftentimes, the not-so-favourable conditions are contained in that portion of the form. Think twice before you do sign. Otherwise, you might end up paying higher than before.

If in case it was indicated early on that the low rates are, in fact, introductory and that they will increase after some time, inquire how much it will be and if it will remain to be so. When you know the exact figures, you can accurately weigh out your options.

Moreover, before closing your other credit cards and sticking to a new one, check if the low rates are for all parts of the bill. Sometimes, the low rates are only for those which are balance transferred. New purchases may have a different rate. If this is the case, you may avail of the balance transfer offer but use your previous credit cards for new purchases.

Some credit card companies also consider balance transfers as cash advances. Thus, the rates may be a lot higher. Inquire about the new credit card's classifications as well as clarify the titles of their various programs and features. One term may mean differently for two providers.

In addition, balance transfer may indeed have lower interest rates as well new purchases. Your inquiry should not end here, though.

You also have to look into the annual fees, late fees, finance charges, and other similar considerations. You may have saved a good amount by transferring your balance but you may end up paying higher fees than before. Weigh which one will be more cost-effective for you.

If in the end you have weighed your options well and decided on transferring your balance to another credit card, check with your old credit card if your balance with them has indeed been removed.

This is just to ensure that you will not be stuck paying two bills for the same purchases. Coordinate closely with your former and current provider to avoid any mix-ups.

Balance transfer offers may indeed be beneficial if reviewed carefully. You have to make sure, before making any decisions, that such is not another catchy credit card offer to guard yourself from.

Important Note:
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Balance Transfer Credit Card Comparison and Reviews
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Successful Credit Card Balance Transfers

Credit card balance transfer is a good way of consolidating your credit card debt. It is also the best way to evade the possible problem that your debt can give. With the high demand of these credit card transfers, companies are competing with one another to get the business.

Before you go into credit card balance transfer, you must learn some pointers to be able to appreciate its function. Here is a checklist of the things you should keep in mind to enjoy the best that it can offer.

1. Carrying out your credit card balance transfers should always be on time, it should not overlap on periods from one to the next as it can bring more money charges on your account.

2. You should always make sure the availability of the zero credit card money transfer is on time. There is no use for applying for an offer after the expiration date.

3. If your credit card issues free interest rate, make sure that it is true. Read the small printings on the promo sheet to know exactly the process of their promo.

4. It is crucial to transfer a credit balance. You should transfer all the balances to normal interest card as the store cards have the tendency to have a higher APR rate.

5. A zero interest or low interest card must be easily identified. You should trust a source where you can have a comparison of two credit cards. You should choose a source that does not advertise a particular credit card; aside from the comprehensive description of comparison, the source must also help you make a good decision. You can check a financial broker for this matter.

6. Always remember the expiration date of your zero balance rate credit cards so you can apply for a new credit card balance transfer before it expires.

7. Choose a flexible and quick interest free credit card balance transfer.

You are sure to get the best credit card money transfer by following the pointer sited in this article. You also have to follow the nine steps for you to get the right procedures in money transferring.

1. Find a lender that gives free interest rate or those that have zero introductory balance transfer rate.

2. You must shop for a credit card wisely. Always be aware of all the things about your chosen credit card.

3. Once the new credit card arrives, call the one who issues the card and tell about your plan of money transferring from your previous credit card. They are the one who will arrange it for you.

4. You will be offered with many privileges you do not need, such as insurance plans. Just tell them that you do not need it now.

5. If the balanced is successfully transferred, never use your previous credit card again. Destroy the card after closing the account to avoid the temptation to use it again.

6. Remember that your new account has a zero introductory balance transfer rate, so you will need a minimum rate to repay it every month during the period.

7. Manage your debt better this time, after getting a new credit card.

You need to learn all of these to transfer successfully a balance to a new account. Make sure to follow the directions carefully for more positive results.

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Credit Cards. Get the information you are seeking now by visiting Credit Card Balance Transfers

Fixed APR Balance Transfers: Better Than A 0% APR

0% balance transfers offer great short term savings, free up money to pay down debt quicker, and can ultimately save consumers hundreds, if not thousands of dollars in interest over their duration. However, the very best 0% balance transfer offers on the market only last 15 months. For many, this is not enough time to completely eliminate their credit card debt and they are faced with a decision: pay the new regular interest rate or transfer their balance again. For most, a fixed APR balance transfer credit card never enters their mind. However, this balance transfer offer is often the best option for many credit card users.

First, let me explain a 0% balance transfer worst case scenario. An acquaintance of mine thought he could save a few thousand dollars in student loan interest by transferring his balance to a 0% APR credit card. The student loan had a fixed APR of 7.99%. He figured he?d save $1600 the first year on his $20,000 loan, then transfer the remaining balance to a new 0% APR credit card the next year.

What he didn?t realize was that its not always that easy to get approved for a new 0% APR credit card year after year, especially when you have a high amount of credit card debt. When it came time to transfer the $18000 left on his credit card, he was only able to get a $2000 0% balance transfer. He was stuck with $16000 of credit card debt with a 12% interest rate and the clock was ticking on his other $2000 in debt. Instead of a comfortable fixed APR of 7.99%, my acquaintance got stuck in a credit card nightmare.

Fixed APR balance transfer credit cards provide consumers with a much better way to pay down long term debt such as student loans or car loans at a set interest rate. Currently, some credit card companies are offering fixed APR credit card rates as low as 3.99% for the life of the balance. A rate such as this is lower than many student loan and car loan rates, and can provide consumers savings of 3% or even 10% on long term debt each year.

A fixed APR balance transfer is also a good option for individuals with high credit card debt considering a second mortgage to pay off their high interest credit cards. For example, a 3.99% fixed APR may be lower than a second mortgage?s interest rate and it wouldn?t involve costly refinancing fees. More importantly, however, is the fact that a fixed APR balance transfer doesn?t remove equity from your home.

0% balance transfer credit cards offer consumers great short term savings. In the long run, however, a fixed APR credit card provides a viable, interest saving option for those looking to reduce higher interest loans and credit card debt over a period of more than 12 to 15 months. Imagine how much better off my friend would be if he transferred his $20000 balance to a 3.99% fixed APR credit card instead of getting greedy with 0% APR credit cards.

Jeff Weber is President & CEO of Credit Card Depot Inc. His primary website, http://www.credit-card-depot.com, has covered the credit card market for over two years, providing consumers with detailed credit card information and links to online credit card applications. Over 40,000 individuals visit Credit Card Depot each month.