A lot of Home-Based Businesses opportunities are sold through seminars, direct marketing, and telemarketing campaigns. Some are legitimate, some are not, and some are even in between. How is it possible to be in between legitimate and illegal?
First of all, anytime there is large cash investment for a home-based business opportunity, you should ask lots of questions. Often the companies that sell these opportunities will accept your credit card as payment for the investment. If this is the case, one of the questions you should ask is how the payment will be processed.
Ordinarily, credit card transactions are processed through normal payment channels. When transactions are processed in this way, you have the right to later dispute the credit card charge and recover your money if the seller fails to deliver the advertised product or service. The Fair Credit Billing Act allows for this.
However, some companies have gotten sneaky and will process larger credit card transactions as ‘balance transfers’. What many people don’t realize is that when a transaction is processed in this manner, you will usually lose your right to later dispute the charge if goods or services are not delivered. Since these ‘opportunities’ often require a large cash outlay, this is can cause you financial grief.
Even if they don’t call it ‘balance transfer’ up front, you will know the transaction is processed in this way because they will need to initiate a three way phone conversation with your credit card company to authorize it.
This blog post talks about some things to look for when evaluating a Home-Based Business opportunity. But one thing you might add is if you hear the words “Balance Transfer” in talking about how you will make payment, beware the consequences! If you’re unsure about the opportunity and think you might use your credit card dispute rights later as ‘insurance’, think again.
Tags: Home Business Ripoff, Balance Transfer Scam, Balance Transfer Ripoff, Home Businesses Opportunities