Per-Transaction Fees: Understanding the Definition, Components, and Typical Cost

Definition of Per-Transaction Fees Payment processors and financial institutions charge Per-Transaction Fees to cover the expenses involved in authorizing, verifying, and settling transactions. These fees vary depending on factors such as transaction volume, transaction value, and the payment method used. Benefits of Per-Transaction Fees Per-Transaction Fees provide several benefits to …

Obligor Definition Responsibilities Scenarios and Types

Obligor Definition, Responsibilities, Scenarios, and Types Responsibilities of an Obligor The responsibilities of an obligor vary depending on the nature of the agreement or contract. In general, an obligor is required to fulfill certain obligations, such as: Repaying a loan or debt within a specified timeframe Making regular payments towards …

Hard Inquiry: Definition How It Works Impact on Credit Score

What is a Hard Inquiry? During a hard inquiry, the lender or creditor will review your credit history, including your payment history, credit utilization, and any previous credit inquiries. They use this information to assess your creditworthiness and determine whether to approve your application. How does it work? When you …

Fair Debt Collection Practices Act: Definition and Rules

Fair Debt Collection Practices Act: Definition and Rules The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets guidelines and regulations for debt collectors in the United States. It was enacted in 1977 with the aim of protecting consumers from abusive and unfair debt collection practices. Definition …

Fair Credit Billing Act: Consumer Protection Explained

Fair Credit Billing Act: Consumer Protection Explained The Fair Credit Billing Act (FCBA) is a federal law that provides consumer protection in cases of billing errors and unauthorized charges on credit card accounts. It was enacted in 1974 and is enforced by the Federal Trade Commission (FTC). What is the …

Default Risk Definition Types and Ways to Measure

Default Risk Definition Default risk refers to the possibility that a borrower or debtor will fail to meet their financial obligations, such as repaying a loan or making interest payments. It is a key concept in the field of finance and is crucial for lenders, investors, and credit rating agencies …