Category: Popular Posts

Here is the summary: Unlike the Apple Card, where Apple serves primarily as a marketing and UX frontend for Goldman Sachs, Apple is providing far more of the functionality tied to Apple Pay Later. “Apple Inc. will handle the lending itself for a new “buy now, pay later” offering, sidestepping partners as the tech giant…

“Cross-border acquiring” is when a merchant operating in Country A uses an acquirerAcquirer (or Acquiring bank) Acquirer (or Acquiring bank) A bank or a financial institute, which acquires funds for its merchant from a shopper. To accept card payments, an acquirer should be licensed by corresponding card networks and either partner with a payment processor, or be…

Building a business case for accepting alternative payment methods (APMs) Users want making a purchase to be as frictionless as possible. There will be many reasons a user decides not to complete a sale, including unexpected costs, being forced to create an account, or being made to complete long-winded forms. But with most people using…

The science behind Buy-Now-Pay-Later: “Neuroscientists have found that asking people to pay money activates the same brain regions as physical pain – we have learned to be wary of paying for things in the same way as we avoid hot cookers or electrical sockets,” “But anything that still allows us to get the positive reward from…

Benefits to Merchants for DCCDynamic Currency Conversion (DCC) Dynamic Currency Conversion (DCC) or Cardholder Preferred Currency (CPC) Allows shoppers to convert the transaction amount to their card’s default currency when making a payment abroad. The shopper is presented with the choice to convert the transaction amount, when the transaction is in a currency other than the default…

Independent Sales Organizations (ISO) act as intermediaries between merchants and their banks, essentially reselling the services of processors. In some cases, they might actually be banks: For example, Wells Fargo is a First Data ISO. As payment gateways, they ensure the secure transfer of the transaction data. They also service merchant bank accounts and might…

What is least-cost routing? Least-cost routing is where a merchant chooses to route a transaction to the lowest cost network for that transaction ‘Least-cost routing’ is sometimes also referred to as ‘tap and save’, ‘merchant choice routing’, ‘wave and save’, ‘lowest-cost routing’, ‘low-cost routing’, ‘merchant routing’, or ‘smart routing.’ However, these terms are not always…

Credit cards have made little headway, and even card companies’ dominance in debit card transaction processing is now under threat. The Indonesian central bank has debuted its own payment network, called the National Payment Gateway, and requires domestic banks to use the new network for local debit card transactions. Banks are in the process of converting Visa- and…

Authorization Time Limits: Explained Authorization time limits will vary by transaction type and by one’s MCCMCC MCCs are determined by card networks like Visa, MasterCard and American Express, who use it to decide how much to charge the businesses for accepting credit card payments (interchange fee). MCC Codes (or merchant category codes) are assigned to merchant…