Hiring an Accountant

When dealing with your business’s money it’s crucial to find a reliable accountant you’re comfortable with.  Use these tips when searching for a trustworthy accountant and accounting firm.

Tips for Hiring an Accountant:

Get Recommendations.  Ask business colleagues, your banker, or other business professionals to refer a reputable accountant. You can also find trustworthy Certified Public Accountants (CPAs) through your state’s Society of Certified Public Accountants website. Always remember to check out every candidate at bbb.org to read reviews or complaints from previous clients.

Check Credentials.  Find out if the accountant is a Certified Public Accountant (CPA). To work as a CPA, the accountant must obtain an undergraduate degree, pass an exam, and meet the experience requirements. A CPA must also participate in continuing education classes to remain licensed and certified, as well as, abide by certain ethical accounting standards.

Determine Size.  The size of the accounting firm you choose will depend on the size of your business and what types of services are needed. Large accounting firms have more resources, while small firms will be able to provide more one-on-one personal contact. Whomever you choose, be sure you feel comfortable with them because you will need to trust them with sensitive financial information.

Interview Candidates.  When interviewing candidates, it’s important to look for an accountant that has a vast amount of experience specifically in the area you need. Be sure to ask about the types of services they provide and which areas they specialize in. Some firms will be able to provide more in depth services, like financial planning advice, retirement planning, and employee benefit planning, while other firms may specialize in preparing tax returns and end of the year financial statements. Be sure to get to know the people who will be working with your account.

Request References.  Ask the accountant or accounting firm to provide references you may contact. Ask the references how often they are in contact with the accountant throughout the year. Ask what type of services the accountant provides for their business and if they are satisfied.

Discuss Fees.  Be sure to ask about service fees upfront. Find out if the accountant charges by the hour with an additional fixed cost or if they charge monthly. Get an estimate of the annual cost for the services you are purchasing and compare the bid with other accounting firms. Keep in mind you will usually get what you pay for, meaning an experienced accountant will charge more for their services, but will usually be worth the money.

FTC Privacy Rules - What You Need to Know

Small businesses need to know what the Federal Trade Commission (FTC) is recommending in their 72-page report on consumer privacy about how customer personal information should be handled online and offline. Here are five points small businesses need to know about the FTC recommendations as U.S. data-privacy regulations evolve.

The report doesn’t actually establish any rules. It does make recommendations to Congress for developing new consumer-privacy rules and offer best practices for businesses.

Some small businesses don’t need to worry. If you only collect “non-sensitive” consumer data and don’t share it with third parties, your business is exempt from the FTC guidelines. However, if you are collecting Social Security numbers and financial, health, children’s, and geo-location information, then take notice. Furthermore, if you collect any data from more than 5,000 customers each year, or if you share with third parties, following FTC best practices is recommended.

Common sense goes a long way. If you are practicing transparency and simplicity, you are doing well. Be upfront with customers about what information you collect and why. Keep privacy policies simple and easy to understand. Give customers a chance to opt out when applicable.

“Do Not Track” is coming. Web browsers such as Mozilla Firefox already have privacy tools that allow consumers the feature to limit data that is collected about them. The Digital Advertising Alliance has a tool for members, too.

Pay particular attention to mobile data. The FTC report says, “The unique features of the mobile phone which is highly personal, almost always on, and travels with the consumer have facilitated unprecedented levels of data collection.” As a result, expect more guidelines or regulatory requirements.

Be aware of what information is collected, what happens to it, and how the privacy policy is stated whether you are the business or consumer.

Five Steps to Building an E-Commerce Site for Your Small Business

Expanding your business into the world of e-commerce is a huge step. It can be expensive, time consuming, frustrating and at the same time, the most rewarding adventure you’ll ever take!  If done properly, a world of customers await your product or service. On the other hand, if done in haste, it can have negative financial consequences.

Here are five steps to help build an e-commerce site:

1. Start with a plan:  Have a 3-year business plan before you get started, and update the plan as your business changes and grows. Local organizations and online webinars are available to assist small business owners with the development of a business plan.

2. Name your site:  Creating a website is a primary goal for any e-commerce business. However, before you get that far, you need to name and register your website. Choosing a name can be hard; it has to be unique, reflective of who you are and what you are offering, while being catchy and memorable.

3. Assemble your pages:  You’ll need pictures and descriptions of your products and services to display on your site. There are copyright laws for pictures and content on the Internet, so be very careful when using anything without permission; fines can be very costly.

4. Setup Payment Processing:  Once your web site is active, you need to be able to accept payments for your products or services. Choosing a credit card processing company and possibly opening a PayPal account are good options for processing payments. Before you start taking credit card payments, you need to make sure you are Payment Card Industry Data Security Standard (PCI DSS) compliant. This means you are able to protect your customers’ credit card information. Online merchants are prime targets for data thieves. If data is stolen and it is your fault, you can incur fines or penalties and may even lose your right to accept credit card payments. Most processing companies take care of this for you, but research ahead of time to avoid issues.

5. Start marketing:  The most important part of the e-commerce puzzle is being found. There are many ways to help customers find your site, but most of them involve paying for advertising. Over time, your site will show up naturally in search engines, but the top positions can be purchased (known as pay-per-click). Writing articles and blogs with links to your products is also a free way to increase your relevance online. Lack of a good marketing strategy is the biggest pitfall to an e-commerce site. Spending money that doesn’t turn into sales can sink a business. Constant testing of ads and writing information that readers are interested in will continue to build strong foundations for a successful e-commerce sites.

Website Design Services

The Internet is a huge resource for consumers so it’s important for businesses to have a strong presence on the web to attract customers and market their brand. If your business is looking to set-up or revamp your website, you may need website design services to provide the right tools. Use these tips as a guide when searching for web design services.

Tips for Hiring Website Design Services:

Determine Necessary Functions.  Think about your business and determine whether your website needs a specialized design or if a simple template will be able to do the job. Keep in mind how your website will be used by your customers. Ask yourself if the website will need to function as an online store or if the website’s sole purpose is to market the business.

Do Your Research.  Ask co-workers and other professionals to recommend web design businesses. Check out businesses at bbb.org to read reviews or complaints. Find out how long the web design service has been doing business and what types of websites they have designed.

Check Out Their Portfolio.  Explore the websites in their portfolio. Make sure the websites convey the proper message for the specific business and the website is user-friendly. If you don’t feel like the website professionally portrays the business, you may want to look into different website designers. Be sure the website incorporates the latest marketing trends and tools. 

Request References.  Request a list of references from the website design business and ask to contact previous customers. Ask the references if the business is reputable and if they were completely satisfied with the services provided. Check to see if the references are still using the design that was shown in the portfolio.

Understand Costs.  When working with a budget, especially a limited budget, it’s important to get the best value for your money. When checking out web designers, look at what the designer is able to provide you. Although one designer may be cheaper, they may not be offering as much value for your money as a designer who is a little more expensive.

Be Sure You're Comfortable.  The web design business should be easy to work with and you should feel comfortable telling them your ideas and opinions since you’ll be working together on the job. Be sure there is always a way to communicate so you are able to get the website you desire.

What Motivates a Customer to Buy?

What motivates a customer to buy from one company and not another? Do you know why your customers buy from you? If not, here are some motivating factors they consider when choosing a company to do business with. 

Convenience: This can be provided in a number of ways, such as the hours you're open, your method of delivery, a user-friendly website, and/or your physical location. If you make the buying experience convenient for your customers, then they're more likely to pay a premium for your service or product. 

Best Value for the Price: Everyone is watching their pennies these days, so price does matter. Prospective customers will most often seek out the best product or service if the price is right. In addition, if they perceive the benefits being offered by two competitors to be the same, a customer will choose price as the tie breaker.

Personal Attention: Potential customers are more likely to buy if your employees are courteous, helpful and attentive. Make them feel as though they are the most important person in the world.

Ease of Buying: Do you make it easy for customers to buy from you? For instance, is your ordering process user-friendly? If you have a storefront or office, is parking convenient and accessible? When someone calls your business, do they have to go through a maze of prompts before they reach a live person? All of the above will either entice or deter a potential customer from buying your product or service. 

Honesty and Integrity: This is very important to customers who may have had a bad experience with one of your competitors. To ensure "peace of mind", make it be known to your customers that you're BBB Accredited by using our logo in your advertising and marketing materials.

Increase Sales Without Spending a lot of Money

Increasing your sales doesn’t always have to mean spending money. Take a look at what is already working for you, and find ways to build on those successful elements. The Direct Selling Education Foundation, a BBB National Partner, recommends the follow ways to increase sales without increasing your spending:

Identify top customers and offer them more. You likely have loyal customers who spend more on a regular basis than others. Identify those people and offer them more than they already get. For example, start a VIP program where top customers receive special promotions, incentives, or exclusive access to new products and services. When your top customers know how much they are appreciated, they will not only embrace that “VIP” role by patronizing your business more often, but they will want to share their positive experience with their families and friends. Superior customer service can have far-reaching effects on your overall business.

Customize your sales pitch for each client. Each client is an individual and should be treated as such. Don’t go with a generic sales pitch that every single client hears. Do some research about each person, and incorporate something personal about him or her into your pitch, especially if it’s something you share (an interest in sports, a community activity). When you can relate to clients on a personal level, they will be assured that you have their best interests in mind.

Increase goals for referrals and sales will increase. Bump up your goals for getting referrals. It doesn’t have to be a large jump, but setting the bar higher will motivate you to work harder and acquire more. Instead of shooting for 5 a week, increase your goal to 7 or 8. Make the time in your schedule to meet this new goal, and you’ll find your sales increasing steadily over time. Each time you find that you are meeting the goal on a consistent basis, consider raising it again. Your business should never run in a straight line, but should always be heading in an upward direction to maintain growth and successInteract personally with customers more frequently. This may come easier in a retail business, but no matter what type of business you run, make the effort to interact with customers on a personal level as often as possible. Learn their names and one or two facts about them. People love going into a place where they feel like more than just a number. One customer of a local deli states that the moment she realized she would never take her business elsewhere was when the owner greeted her by name, asked how her daughters were, and offered her “the usual.” It’s a comforting feeling for a customer and will go a long way to acquiring loyalty and appreciation.

Find ways to improve upon what works for you, break out of your comfort zone, and always look to set the bar higher for yourself and your business.
Customize your sales pitch for each client. Each client is an individual and should be treated as such. Don’t go with a generic sales pitch that every single client hears. Do some research about each person, and incorporate something personal about him or her into your pitch, especially if it’s something you share (an interest in sports, a community activity). When you can relate to clients on a personal level, they will be assured that you have their best interests in mind.

Increase goals for referrals and sales will increase. Bump up your goals for getting referrals. It doesn’t have to be a large jump, but setting the bar higher will motivate you to work harder and acquire more. Instead of shooting for 5 a week, increase your goal to 7 or 8. Make the time in your schedule to meet this new goal, and you’ll find your sales increasing steadily over time. Each time you find that you are meeting the goal on a consistent basis, consider raising it again. Your business should never run in a straight line, but should always be heading in an upward direction to maintain growth and successInteract personally with customers more frequently. This may come easier in a retail business, but no matter what type of business you run, make the effort to interact with customers on a personal level as often as possible. Learn their names and one or two facts about them. People love going into a place where they feel like more than just a number. One customer of a local deli states that the moment she realized she would never take her business elsewhere was when the owner greeted her by name, asked how her daughters were, and offered her “the usual.” It’s a comforting feeling for a customer and will go a long way to acquiring loyalty and appreciation.

Find ways to improve upon what works for you, break out of your comfort zone, and always look to set the bar higher for yourself and your business.

Is Your Digital Marketing Outdated?

Businesses worry about keeping their computers up-to-the-minute. But what about your digital marketing strategies? Are they way older than Windows 07? Meet Michael Lovas, multi-book author and man behind the psycho-social marketing strategies of the Spokane firm About People (along with wife Pam Holloway.) “A lot of bad advice was good advice ten or 20 years ago,” Lovas says, “But with digital media, people began reading differently. The old approach to layouts and writing ceased to [be effective.]” Lovas says first impressions mean design and content. “If those aren’t presented right, your message will likely go unread.” Statistics have shown that most people leave a webpage after ten seconds, reading no more than 120 words. (By the end of this sentence you’ll be on word 126.)

Five Quick Don'ts:
1. Don’t assume email is the same as direct mail or that people are itching to read it.
2. Don’t treat your website like a brochure, with long sentences, long paragraphs, and no subheads. 
3. Don’t fill your company blog with irrelevant personal anecdotes and lofty pontifications. 
4. Don’t build the top of your marketing page around a pretty, generic image that has little to do with your business or your customers. 
5. Don’t clutter the top of your website by cramming too many elements into it.

Five Quick Dos:
1. Do your homework. Know that people only skim digital marketing, moving their eyes in an “E” or “F” pattern—not the older “Z” reading formation. 
2. Do give the reader visual stepping stones: subheads guiding the eyes to points of relevance in descending order. 
3. Do use sidebars, quotes, or graphics to break up large chunks of text. 
4. Do keep in mind that your website needs to reflect what your customers want to learn—not what you want to say. 
5. Do link to something your visitors will find valuable.

How to Help Customers Find You

Think about the last time you wanted to make a purchase that required some research, whether it was a new car, a new TV, some furniture, or a bike for your child. What was the very first thing you did? If you’re like most people, your answer can be summed up in one word: Google. When consumers are in the early stages of buying something, they are likely to turn to Google. So how can you use this to your advantage? Read on for some ways to make yourself more visible online and offline.

Online Commenting. This is a very effective way to drive traffic to your website. Write brief but meaningful comments on sites that are relevant to your business. You can also write reviews of books about your industry on sites like Amazon or Google Books. Participating in this type of online discourse will allow you to network with other likeminded people in your field, and eventually make your name more recognizable on the web. Furthermore, frequent commenting on well-chosen sites can increase the likelihood that people will find you on search engines like Google.

YouTube and Podcasts. These are valuable resources for you to use in your search for new customers. Do not dismiss YouTube as solely a website for young people watching viral videos. Many businesses are now using YouTube channels to post all kinds of videos such as tutorials, product demonstrations, and mini-advertisements. Include the link to your website so viewers know where to go for more information. The same goes for podcasts; for people on the go, they are a necessity. Consider using this medium to communicate with not only prospects, but current customers as well.

Smartphone apps. Apps are a must for any brick and mortar business. By registering for popular apps like FourSquare, Google Places, Yelp, and GoWalla, you can take advantage of the ever increasing use of smartphones by current and potential customers. Most of these apps are available for iPhones as well as Android and Blackberry phones. People use these apps not only to find the location of a business, but also to link to the business website and read reviews by other users.

Here are some more ways:

Signage on cars
Fun signage/banner/T-shirts for your clients to display
Testimonials
Online/printed Reviews
Follow up cards, emails and phone calls
Seasonal promotions for your community
Sponsor charities and causes in your community
Weekly workshops and/or presentations in community hubs
Partnering with other businesses
Referral exchange – where you refer business to them and they refer business to you.
Sporting/community event meet and greet
Offer online/offline contest and give-a-ways
Joining or starting organizations and clubs

Many of the methods listed above are low-cost ways to help customers find you. Make the most out of your online presence, but don’t forget to also make it easy for your local community to find you offline as well.

What have you done to help your customers find you?

BBB Warning: Smart Phone Apps May Share Your Information

Smart phone apps can make life easier, putting dozens of useful tools in the palm of your hand. But BBB is warning consumers to make sure the apps they download don’t take more information than they need to do the job.

In a recent settlement by the Federal Trade Commission, the agency found that a flashlight app’s privacy policy had been deceiving users into sharing their geographic location and device information with advertising networks and other third parties. “Brightest Flashlight Free," developed by Goldenshores Technologies, LLC, is one of the most popular apps on Android mobile devices and has been downloaded more than 10 million times.

However, according to the FTC, the company's privacy policy told consumers that any information collected by the app would be used by the company, and listed some categories of information that it might collect, including geographic location. The privacy policy failed, however, to mention that this private information would be released to third parties. The complaint also involved the company collecting information as soon as users opened the app, even before accepting or refusing the terms of the privacy policy.

Goldenshores Technologies has agreed to settle the FTC charges. The settlement goes on to prohibit the company from misrepresenting how users' information is collected and shared and how much control users have over the way the information is shared. It also requires defendants to obtain consumers’ affirmative express consent before collecting, using and sharing information.

It’s not always easy to tell if an app is going to collect your information or how it will use it. BBB is urging

smart phone users to:

• Research companies and apps before downloading, including industry publications and user reviews;

• Read the full privacy policy (and, on Android phones, the “Permissions” screen);

• Opt out of location sharing when prompted;

• Periodically check all privacy settings on your smart phone and keep them set as high as you can without altering the functions of your apps (some apps, like maps and compasses, need geo-location information in order to work properly);

• Update your apps when a new version comes out (your phone should alert you); often app updates fix “bugs” from earlier versions;

• Delete apps you no longer use from your phone.

For information on apps for children, check out BBB’s Children’s Advertising Review Unit.

For more tips you can trust, visit bbb.org.

How The BBB Helps With Your Internet Marketing & SEO

This blog post was written by Phil Singleton, Founder & CEO of Kansas City Web Design, a Kansas City BBB A+ rated accredited business.

There are so many reasons why businesses should join the BBB.  Most of these are well-known and self-explanatory.  Yet,  BBB Accreditation provides your business with many online benefits that are often overlooked.

The BBB is a highly trusted website.  The search engines know that BBB members go through an extensive vetting process to become accredited.   The information on your BBB Business Review, including the link back to your company’s website, provides search engines with important information about your business.  While a BBB listing is by no means a ‘magic bullet’ that ensures high search engine rankings, it can help to boost your overall Internet marketing efforts and provide other benefits as well.

Here’s why:

1. BBB is a PR8 Website: The major search engines consider BBB.org to be a ‘high authority’ website.   Google, for example, has a score for websites called PageRank, rated from 0-10 (Google.com is a PR9 website).  Have you ever wondered why some websites appear ahead of yours in search results?  One possibility is that your competitors have more high authority websites linking back to their site.  This is over-simplifying search engine optimization (SEO) because many factors influence your website’s rank – but high quality backlinks are still a very important part. In other words, a link from BBB to your website is a valuable link.

2. BBB Kansas City is a PR5 website:  Local chapters pages of the BBB tend to have a PageRank as well.  The Kansas City BBB has a high page rank in its own right.  Further, the combination of high domain authority with local, highly relevant content makes your link(s) from the BBB valuable.

3.  Your BBB Page Is a Powerful ‘Mini Site’:  The Kansas BBB has strong organic rankings for many types of searches.  If your company takes advantage of all the great features on your BBB profile page, your BBB page can achieve its own organic rankings.  In other words, a prospective Kansas City customer could search for a service and it’s possible that your BBB company page could rank for that search term.

Further, if you have an SEO program in place, your Internet marketing consultant can drive SEO efforts at your BBB page – extend your keyword reach an overall Internet visibility.

4.  BBB Interactive Seals Increase Conversion Rates: A highly visible, accredited BBB seal is extremely helpful for ‘website conversions’.  A website conversion is the action you would like your prospective customers to take at the end of their website visit.  This could be an online sale, a phone call, filling out a contact for or application, etc.  Your website visitors develop a first impression in a fraction of a second.  After that initial impression, your website has another three seconds to convince visitors to stay and read more.  A highly visible BBB seal helps establish credibility and trust immediately, which in turn will help in increase your website’s conversion rate.

5.  High Quality Outbound Links:  Backlinks pointing to your website are just one SEO ranking factor.  Strategically placed outbound links can contribute to your website’s organic search engine rankings.  This is especially helpful when creating blog posts to your website.  When you are writing on a topic and the text or page contains an outbound link to a relevant, quality website, this link is often perceived by search engines to add value to the page or post.  Thus, linking your seal to your BBB profile page, or linking to a BBB page or blog post may contribute to your organic rankings.

In summary, if you are a BBB Accredited Business, be sure to take advantage of the SEO benefits that your membership can bring.  Make sure your profile is up to date and contains your website information.  Add relevant and optimized content to your member page (logo, images, videos, etc.).  Display the BBB seal prominently on your website.  Hyperlink your seal to your BBB company profile page.

Holiday Gift Cards

Marlborough, MA - December 13, 2013 - Finding the perfect gift during the holiday season is not an easy task. Gift cards are a hassle-free present that allows the recipient to choose something they really want or need. Better Business Bureau serving Eastern MA, ME, RI and VT (BBB) offers tips on how to choose a gift card that will best suit the both the gifter and recipient.

“When purchasing a gift card, it is important to choose the right one for the recipient,” stated Paula Fleming, Vice President of Communications and Marketing for the local BBB. “Consumers need to understand the type of gift card they are purchasing, as well as, the fine print and policies associated with it.”

Giving gift cards has been on the rise for years and according to the National Retail Federation, consumers will spend roughly $29.8 billion on gift cards this year. The survey also states that gas station, department stores and restaurants are top choices for gift cards. Gift cards are popular for their convenience and the freedom they give to the recipient.

BBB offers the following tips when purchasing a gift card:

· Inspect the card before buying it. Verify that no protective stickers have been removed, and that the codes on the back of the card haven’t been scratched off to reveal a PIN number. Report any damaged cards to the store selling the cards.

· Know the rules. Understand the different types of gift cards: retail gift cards, which can only be redeemed at the retailers and restaurants that sell them; and bank gift cards, which carry the logo of a payment card network such as American Express, MasterCard or Visa and can be used wherever the brand is accepted.

· Check it out. Make sure you are buying from a known and trusted source. Always check out a business at bbb.org. Avoid online auction sites, because the cards sold there may be counterfeit or may have been obtained fraudulently.

· Read the fine print before buying. Is there a fee to buy the card? Are there shipping and handling fees for cards bought by phone or online? Will any fees be deducted from the card after it is purchased?

· Provide the recipient with back up. Give the recipient the original receipt in case the card is later lost or stolen. Also, before you buy retail gift cards, consider the financial condition of the retailer or restaurant. A card from a business that files for bankruptcy or goes out of business may be worthless. If the business closes a store near the recipient, it may be hard to find another location where the card can be used.

· Treat the gift card like cash. It’s important to report lost or stolen cards to the issuer immediately. Some issuers will not replace cards that are lost or stolen, while other issuers will, for a fee. Make sure to use gift cards as soon as possible, because it’s not unusual to lose or forget about them.

For more advice on finding reputable businesses around the holidays, visit bbb.org.

BBB at a Glance - Quick Facts

What did you learn about being BBB accredited? 

How to Improve Your Credit Score

Whether you like it or not, the ugly truth is your credit report and credit score have a great deal of power. They serve as key tools that measure the financial risk you pose to lenders. The higher the score, the lower the risk. Credit scores and reports are used to determine whether or not you are approved for a mortgage, loan, or even a bank account and can positively and negatively affect the interest rates on your credit cards and other borrowing methods. Therefore, it is extremely beneficial to do what you can now to improve your credit score and resolve any errors on your report. This will prevent this information from haunting the remainder of your financial life.

According to a recent Federal Trade Commission report, more than one-in-four credit reports contain errors. Make sure to check your credit report for errors or potential fraud once each year. You can order a free copy of your credit report from the three major credit reporting agencies once every 12 months by visiting www.annualcreditreport.com. The site is run by the three credit reporting agencies: Equifax, Experian, and TransUnion. Keep in mind that this is the only free resource to receive your official credit report. Do not fall for any other company that advertises “free” credit reports because these companies will make you sign up and pay for other services.

After you check out your credit report, the next step to take is to fix any errors. Contact each of the three reporting agencies to report the errors, and begin the process to correct them. This often requires sending in a letter, including your name and address, exactly which items you’d like to dispute and why. Include copies of supporting documentation and a copy of your report with the errors circled or highlighted. Also contact the provider of the incorrect information and have it fixed on their end, so the problem does not reappear in the future. If you still encounter issues, visit The Federal Trade Commission to learn more about your rights when dealing with credit reporting agencies.

It’s always good to be building good credit because this will help you out in the future. Here are some quick and easy tips on how to maintain a good credit score or make some necessary improvements:

• -Keep track of your bills and make sure to pay them on time.
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• -Do not max out your credit cards. Keep your credit card balances low, and try to limit your purchases to less than 25% of your credit limit at any time, even if you always pay off your bills in full.
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• -Limit the number of credit cards you open, including retail store cards. They may come with great perks, but many cards show lenders that you tend to borrow money at high rates over short periods of time, which signals risky borrowing behavior.
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• -Keep open old cards with a long credit history. They may help your credit score because the length of your credit history accounts for 15% of your score. The higher the average age of your accounts, the more it could improve your score.
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• -Remember to pay traffic or parking tickets or even library fines. If these bills end up at a collection agency, it could drop your credit score by as much as 100 points! Make sure to also keep records of these sorts of payments, in case you need to dispute an error.
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For more information, visit BBB’s Managing Credit – Made Simpler. There you will find tips on paying off balances, managing your budget, getting financial help, and protecting yourself from credit fraud.

Western Union and Better Business Bureau Warn of Charity Scams During Giving Season

The holidays bring out the best in people, and many charities count on end-of-year generosity from donors to meet the needs of those less fortunate.   Sadly, scammers know this and prey on unsuspecting consumers who don’t do their homework when giving money to charities.  Scammers solicit by phone and email, or post links to fraudulent charities on social media sites with names similar to those of legitimate organizations.  In some cases, scammers even pose as legitimate charities, in one variation of the so-called imposter scam.

Western Union and Better Business Bureau launched BBB Scam Stopper to help consumers reduce their chances of becoming a victim of common scams.  “We urge donors to give thoughtfully, and to be wary of scams this holiday season,” said Art Taylor, President and CEO of BBB Wise Giving Alliance, “It’s important to check out a charity first, and make sure you are giving to a charity that will use your donation wisely.” BBB’s give.org has reviews of more than 11,000 charities.

Here are tips to consider when giving money to charities:

 

·         It’s best always to donate to a charity directly after confirming its legitimacy – rather than giving in response to a phone call or by clicking an email link.

·         Never send a money transfer to an individual for a charity.  Western Union does accept donations for charities, but the money transfer must be sent to the organization, not to an individual.

·         Never share banking or credit card information with a person or business you don’t actually know.

·         Never click on links to charities on unfamiliar websites or in texts or emails. These may take you to a lookalike website where you will be asked to provide personal financial information or to click on something that downloads harmful malware into your computer.

“Resist rushing.  If a charity is legitimate, they’ll accept your donation any time,” said Shelley Bernhardt, Director of Consumer Protection at Western Union.

For more information visit westernunion.com/stopfraud or, to test your knowledge of scams, take the Fraud Quiz: westernunion.com/fraudquiz.

To learn more about which charities meet BBB Wise Giving Alliance standards, go to give.org. 

Sharp Rise in Online Retailer Complaints

The long lines for the newest iPhone showed that consumers are still willing to wait for the latest and greatest electronic device. However, many prefer to skip the line and jump online to find good discounts on electronics and other items. But before you do, Better Business Bureau is warning online shoppers to beware of questionable advertisements and phony websites.

BBB received six times more complaints nationally against online retailers in 2012 than 2011 – from 62 in 2011 to 347 complaints in 2012. Most consumers allege they were charged undisclosed fees and taxes, while others claim they were charged for a product they later discovered was out of stock and undeliverable.

When considering the purchase of an electronic device or any item from an online retailer, it’s important for consumers to do their research. Make sure the price advertised is specifically for the device you want and not just a similar version. Also, remember that not all websites are legitimate. Ensure the site is secure by looking for the “s” in https when entering your payment information.

BBB advises consumers to also look out for the following when planning to do business with an online retailer:

1) Advertised prices are much lower than retail. Everyone is looking for a bargain on electronics and scammers use tantalizingly low prices to lure victims in. If the prices for items are well below those of trusted competitors, be prepared to walk away.

2) Spelling and grammar. Many phony electronics websites are created by scammers overseas and you can spot them because they usually contain spelling and grammar mistakes.

3) Payment via wire transfer only. Scammers often ask victims to wire payments because the money cannot be easily tracked or retrieved in the case of fraud. BBB recommends always using a credit card to pay for electronics online. If the website turns out to be fraudulent, you can dispute the charge with your credit card company.

4) Lack of information. Always try to find a seller’s physical address, not just a P.O. Box and phone number. Research the company’s name and website for additional information. Check bbb.org for detailed information about the company including owner information and history of complaints.

5) Fraudulent security seals. When shopping online, you want to look for the seals of trusted organizations and confirm that the business’s use of the seal is legitimate. You can typically do this by clicking on the seal which, if legitimate, will link you to a confirmation page on the certifying organization’s site. For BBB Accredited Businesses using the dynamic seal on their website, the clickable link will direct the consumer back to the company’s BBB Business Review.

How often do you shop online for business or personal reasons?