payment methods
PCI compliance
-"The Payment Card Industry Data Standard Standards (PCI DSS) provide a framework which all businesses who accept credit cards must abide by. -Composed of the world's five largest credit card brands, the PCI Security Standards Council manages and enforces these rules" (Savage). -The PCI compliance process is about payment security. It doesn't just magically happen, nor is it 100% taken care of by your POS system or IT vendor. -In other words, your business is responsible for ensuring that specific processes are followed and requirements are met, 24/7/365 1.A firewall must be setup and maintained to protect cardholder data 2.Change the vendor supplied default system passwords and security parameters 3.Protect all of the card holder data you store and process 4.All cardholder data that is transmitted across open, public networks should be encrypted 5.Ensure your systems are protected against malware and anti-virus software is up-to-date 6.Maintain secure systems and applications 7.Access to cardholder data needs to be restricted 8.Access to the system should be uniquely identified and authenticated 9.Restrict physical access to your systems 10.Monitor and log all activity on the system 11.Regularly test the systems security 12. Up-to-date security policies should be maintained and made available to all employees
in the news (citi)
-1981, Citi bought out Diners Club International -Citi decided to dismantle Diners Club's payment acceptance network within the region -Citi made a deal with MasterCard in 2004 to bring Diners Club onto the MasterCard network in the United States and Canada -Diners Club became a MasterCard in terms of payment acceptance and merchant recognition, while maintaining its traditional benefits and rewards
web payment services
-A facility that manages the transfer of funds from a customer to the merchant of an e-commerce Web site -the money may come from: a digital wallet, from a credit card stored on a server of the digital wallet service, from a prepaid account stored in the payment service's server -authorize.net -international checkout -paypal -trial pay
EMV "chip and PIN"
-Almost every credit card issued in the U.S. is equipped with EMV technology. -EMV is a security standard for storing account information on credit cards. -an alternative to the magnetic stripe (mag stripe) that has traditionally been used to store information on the backs of cards in the United States -stands for "Europay, Mastercard, and Visa," the three companies who began this initiative. -It's a more secure way to store information, providing better protection against some forms of credit card fraud than the older mag stripe, because it can't be as easily "skimmed" by fake credit card readers. -When you make a purchase with a credit card, the terminal needs to verify that you're the one who's actually using the card. -This verification is usually done with a signature in the U.S., and sometimes with a PIN in other countries. -The chip and the terminal work together to create a unique, encrypted code, called a token or cryptogram. This token is unique to the specific transaction taking place, and will only be used that one time. •This is a dynamic number, meaning it will be different for every transaction. That's in contrast to the static information contained in a mag stripe, which is always there on your card and able to be copied. -Next, this token needs to be decoded to verify that it came from your card's chip -After the token is verified, and the system determines that you have enough available credit on your card, the purchase will be approved
bitcoin
-Bitcoin is the most popular cryptocurrency, dominating the crypto space with its blockchain technology and its scarcity. -created in 2009 by the pseudonym Satoshi Nakamoto, who might be an individual or a group of people. -It works on a peer to peer network, where no intermediaries are involved. -It is the digital currency, which aims to exclude the intervention of any third parties, while you are transacting -It is gaining adoption and some people have started using BTCs in real-time, like buying a Lamborghini or buying a mansion. -It's easy as well as advanced. Once you understand the technology behind it, you will definitely embrace the beauty of this digital currency
contact or contactless
-Contactless cards are faster to use •To make a purchase, the card owner just waves his card over the RFID reader, waits for the acceptance indicator - and goes on his/her way. •American Express, Visa and Mastercard have all agreed to waive the signature requirement for credit card transactions under $25. -Visa extended its transaction limit to $50 from $25 in 2010
credit cards
-CreditCards.com, continuously monitor the credit card market in order to bring you the best credit cards, reviews and credit card offers available online. -Credit Card offers are displayed side by side so you can easily compare key factors such as interest rates, annual fees as well as other key features -Credit card associations such as Visa and MasterCard are nonprofit associations that set standards for the issuing banks—such as Citibank—that actually issue the credit cards and process transactions -The Visa and MasterCard associations do not issue credit or debit cards directly. They are each collectively comprised of thousands of banks worldwide. These banks pay membership fees to the associations, and are thus permitted to issue cards. -American Express, Diners Club, and Discover are not associations; each of these companies issues its card directly, and maintains its own clearance network. -Other third parties (called processing centers or clearinghouses) usually handle verification of accounts and balances.
discover card
-Discover is known for its 100 percent USA-based customer service, often receiving top marks on surveys by consumer groups. -All cards in Discover's portfolio offer rewards in the form of cash back or miles. -Some cash-back cardholders have the potential to earn even more thanks to revolving quarterly categories that provide as high as 5 percent cash back on categories that range from gas to restaurants and much more. -thanks to Discover's Cashback Match™ program, eligible new cardholders could earn up to 10 percent cash back in those categories during the first year
paid by cash
-Enter your ZIP Code to see the ten nearest retail locations where you can pay in cash. -At the store, load the amount you wish onto the card you have selected and pay the upfront fee (between $1.95 and $5.95). -each card has different limits as to how much you can load -- between $25 and $500. -Some cards will require you to return to your computer and register your name and address at their site. -This is very important: Internet merchants will only process payments on cards that have registered addresses. -That's it. You are ready to start shopping. -You will have a new, fully activated 16-digit card number along with a CVC2 code and an expiration date which you can use in most online shopping carts
zelle
-Get started by enrolling your email or mobile number through your mobile banking app or with the Zelle app. -Enter the preferred email address or mobile number of the recipient. You can send money to almost anyone with a bank account in the U.S. Enter the amount to send. Your recipient gets a notification explaining how to complete the payment, simply and quickly
Credit cards are offered through a variety of banks. You must remember that there is a cost to the bank associated with offering customers the option of using credit
-In order to get a credit card account in your name alone, you must be at least 18 years of age. But there are additional financial requirements from ages 18 to 21, including the ability to prove independent income. The process gets a little easier after you turn 21 years old, but there are still important things to know to set yourself up for the application and qualification process
authorize.net
-Merchants can connect to the Authorize.Net Payment Gateway, which provides the infrastructure and security necessary to ensure fast, reliable and secure transmission of transaction data. -available 24/7 for processing transactions. -offer a number of value-adding services to assist merchants in managing their businesses and protecting themselves from fraud. -the free, Authorize.Net Verified Merchant Seal can be added to a merchant's Web site to help build consumer confidence
mobile payments now include:
-Mobile wallets, also referred to as digital wallets -Contactless mobile payments -Closed loop mobile payments -Money transfers -Mobile point-of-sale (POS) -Carrier payments (Mali).
in the news (new york)
-New York became the latest city to tell businesses they must accept cash -New York joins Philadelphia, San Francisco and the state of New Jersey in passing legislation that lawmakers say will prevent businesses from enacting policies that shut out the millions of Americans who don't have a bank account, lack credit cards or don't have photo identification
card verification value code (CVV) or card security code (CSC)
-One simple step that many online merchants are using to secure their online shopping for consumers is the requirement of the 3 or 4 digit code on the front or the back of the consumer's credit card. -In the event that someone steals an individual's credit or debit card information, unless they have the physical card in their presence or had the opportunity to also view the code that is located on the back or the front of the credit card, the transaction will not be verified.
paypal credit
-PayPal Credit (formerly Bill Me Later) is a convenient and secure way to pay on the web or over the phone. -Bill Me Later lets users pay without using a credit card. once added to your PayPal account, it can be used almost everywhere PayPal is accepted. -Millions of shoppers love Bill Me Later because it's fast, simple and secure. -Leading web stores and catalogs love Bill Me Later because they want to offer easy, safe, and convenient options for their customers at check-out. -You can pay your Bill Me Later account online using either a checking or savings account. They do not accept credit cards
paypal
-PayPal is the safer, easier way to pay and get paid online. -The service allows anyone to pay in any way they prefer, including through credit cards, bank accounts, buyer credit or account balances, without sharing financial information. -PayPal has quickly become a global leader in online payment solutions with more than 164 million accounts worldwide. -Available in 190 markets and 17 currencies around the world, PayPal enables global ecommerce by making payments possible across different locations, currencies, and languages. -Located in San Jose, California, PayPal was founded in 1998 and was acquired by eBay in 2002
visa rushcard
-RushCard is a prepaid Visa debit card. -You can only spend what you deposit, so there are no costly overdraft or interest fees. -It's an easy-to-use and a convenient alternative to credit cards and traditional banking. -Use your RushCard without the worry of going into debt or overdrawing your account! -Because your RushCard carries the Visa logo it can be used at millions of locations worldwide—to withdraw cash, make everyday purchases, shop online, or pay bills.
in the news (coin)
-Smart payments company Coin this week announced the shutdown of its various product services, officially closing product support, social media channels, and the connected Coin app on iOS and Android devices. -The news follows the discontinuation of all Coin products last May, when Coin was acquired by Fitbit and the company subsequently ceased selling its line of smart payment cards
deferred/installment billing
-Some stores offer their own credit terms or a form of deferred/installment billing -paypal credit -quadpay & afterpay
in the news (starbucks)
-Starbucks began testing a policy in which it will not accept cash at a store in Seattle, supporting only plastic or mobile payments. -it's rare to ban cash outright. -Another example is Shake Shack, which introduced a cashless location in New York last year as part of its effort to introduce its mobile app into its standard ordering process
jcb cards
-The Japan Credit Bureau (JCB) Card has a merchant network of 10.93 million spanning 189 countries. It is supported by more than 320 financial institutions worldwide and serves more than 48 million cardholders in 18 countries. -philosophy of "identify the customer's needs and please the customer with Service from the Heart" is paying rich dividends as their customers spend US$43 billion annually on their JCB cards -accepted in australia, new zealand, canada through american express and in the US through discover
gsa smart pay
-The U.S. General Services Administration (GSA) SmartPay® 2 program provides charge cards to U.S. government agencies/departments, as well as tribal governments, through master contracts that are negotiated with major national banks. -In June 2007, the Office of Charge Card Management awarded the GSA SmartPay® 2 master contracts to Citibank, JP Morgan Chase, and U.S. Bank. -Most agencies have transitioned to the new GSA SmartPay 2 cards on November 29, 2008
when kids shop online (scrip)
-The second form of currency, which by and large is used much more by kids, is less about cash and more about credits that have been offered and exchanged by brands or organizations for usage. -That could involve the ability to download music. Most marketers offer promotions and access to music. Coca-Cola, Pepsi and Doritos engage with kids using credits and points in a kind of exchange or barter system. -We've seen kids ages as young as 12 and 13 making online purchases using both methods
online credit card transactions
-When no card impression is taken, and no signature is available, these are called Cardholder Not Present (CNP) transactions
international checkout
-You can buy from any online store. -To buy goods, go to "Place an Order!" and enter items you want to purchase, the price and the store you want us to buy from. -Your total, including shipping, handling and fees will automatically be calculated. -If you would like to continue at this point click the International Checkout-button. Enter your billing and shipping information, choose a payment method and submit your information through their secure server. -Customers may select to pay International Checkout in their own local currency with Visa or Master Card. -Additionally, they may pay via American Express, Discover, JCB, PayPal, Moneybookers, or Bank Transfer
moneygram
-affordable, reliable and convenient to send and receive money or make payments. -MoneyGram® money transfers -ExpressPayment® bill payments -money orders and more. -You'll find their agents in many convenient places where you shop, just look for the MoneyGram sign. -And with a network of 186,000 Money transfer agents in 190 countries and territories, they not only have a global reach but we're also in a neighborhood near you
pay-by-phone apps
-amazon pay -apple pay -google pay -pay with square -samsung pay -venmo
mobile payments
-close second payment method for many e-commerce superpowers
The transition to a cashless society has been a long time in the making, rise in Alternative Payment Methods (APMs)
-credit cards still claim the lion's share of all transactions -over half of all online transactions will be made using alternative payment methods by 2021
online merchants will continue to offer payment options to
-drive up order values -suit multiple shopping interests -appeal to a broader range of consumers -it's easier to spend money with a credit card than with cash -Credit cards also increase impulse purchases (and tips). -Why? Simple: consumers are not tied to what is in their wallets at that moment
payment methods in foreign countries
-interac, canada -citibank ecard, india -mondex cards, england, hong kong and canada -octopus cards, china, hong kong -cartes-bancaires, france -zipmoney, australia
bank account related (elayaway)
-makes it easy for you to buy the products and services that you want by paying for them through manageable monthly payments that you set. -Their intuitive calculator allows you to break down your order's purchase price over 3 to 13 monthly payments. -will automatically deduct the payments from your bank account and you will receive your order once it's paid in full. -plan and budget for holiday purchases, anniversaries, birthdays, vacations and more!
store-brand credit cards
-many stores offer their brand of charge cards -bloomingdales -home depot -macys -sears -target -domestications
american express
-offers cards with flexible payment options as well as those that require payment in full at each statement. -credit and charge cards for individuals, small businesses and corporations, and there are plenty of options for people seeking a card for everyday purchases as well as those designed to reward your loyalty to a specific hotel or airline brand
mastercard
-offers nearly every type of credit card desired, including many with options for various rewards as well as cards issued by a variety of banks. -Expert ratings and reviews can be used to find the best credit card offers and to make credit card comparisons. -Mastercard credit cards are widely accepted and offer many benefits
in the news (nyc mta)
-people can use Apple Pay for public transportation in NYC. The rollout is part of the MTA's One Metro New York initiative in which it's testing new payment methods for fares. The tap and pay system that will support Apple Pay will be available on the 4/5/6 Subway lines. The service will also be available on buses in Staten Island -The news out of Apple Pay comes just a few days after Google announced a partnership with the MTA. Last week Google said it added the MTA to its list of transit agencies that will let commuters pay for rides via Google Pay
limitations of online credit card payment systems
-security - neither the merchant nor the consumer can be fully authenticated -merchant risk - consumers can repudiate charges even though the goods have shipped or the product downloaded -cost - approximately 3.5% of the purchase, plus 20-30 cents per transaction, plus setup fees. PayPal also tacks on a variable fee from 1.5%-3% depending on the size of the transaction. -social equality - young adults do not all have credit cards or adults who are considered poor risks because of low income
diners club international
-sets the standard for premier benefits. -Your Diners Club Card is accepted at over 38 million Mastercard merchant locations worldwide - anywhere Mastercard is accepted.
stored value/prepaid methods
-stores information electronically on a magnetic stripe or computer chip and can be used to purchase goods or services. -The balance recorded on the card is debited at a merchant's point of sale terminal when the consumer makes a purchase. -contain all the information necessary to identify the card and its value. -This has enabled point of sale terminals in most systems to be ''off line''. it is unnecessary to contact a depository institution or database for transaction authorization -includes debit cards, gift cards, prepaid cards, smart cards -accountnow, visa rushcard, paid by cash
psychological aspects
-the more cash-based a payment is, the more likely people will be cautious about spending. When you spend it, you have less of it in your wallet. -we have credit cards. while tangible, does not represent actual money. It's just a piece of plastic, and a shopper does not see the result of their expenditure for almost a month -people spend 12-18% more when using credit cards instead of cash -people are willing to spend more—as much as 83% in some cases—when paying with a credit card instead of cash
trialpay
-the only payment method that increases a customer's willingness to pay. -entices shoppers to complete their purchase by giving a 2-for-1 with every transaction. -Shoppers get their original product for free by completing one offer from blue-chip advertisers. -everyone wins: merchants make more sales from their current traffic, advertisers acquire new customers on a pay-for-performance basis and shoppers get a free product with every purchase.
in the news (nipsey hussle)
-unpaid credit card bill. -the rapper owed tens of thousands of dollars to American Express credit card. -The bill never got paid so now, the credit card company is taking his estate to court.
money transfers
-western union -wu pay -moneygram -zelle
Visa
-will be accepted around the world, you may want to choose a Visa credit card. -Visa credit card offers include a wide assortment of credit cards including cash back, low interest, balance transfer, student, and business cards issued by a variety of banks
accountnow
-work like a checking account. -FDIC insured, like a checking account, to ensure the safety of your money. -come with a prepaid card containing the debit logo. -like bank issued debit cards but better. -Not only can you make purchases and withdraw cash with our prepaid card, you can only spend what is in your account. -Since you are only spending money you add to your prepaid card account, you can avoid falling into debt and possibly damaging your credit score. -Because you're not borrowing money, you will never have to worry about finance charges, late charges, or over-the-limit fees
payment cards
1.Credit card: make purchases with borrowed money, known as credit. You will begin to build up a balance that needs to be repaid at the end of every month. 2.Debit card -A debit card and your bank account are directly connected. Will automatically deplete your bank account's funds. Will not build your credit history. 3.Charge card - offers as large, often unlimited, credit limits for cardholders. any charges made with a charge card must be paid in full by the end of every month. There is no minimum balance. Prepaid cards - you are loading money into it. After using all of your funds you can then reload it with additional money. A prepaid card eliminates the need for carrying cash but does not help build your credit history
WU pay
WU® Pay (formerly eBillme) is an online payment option, which allows you to shop online, and pay cash using online bill pay, or in person at a participating Western Union Agent location in the U.S
western union
You can send money in minutes, the next day, or directly to a bank account, either online or from one of our 320,000 Western Union Agent locations worldwide. Use cash, credit, or debit cards
in-store financing
some stores offer their own financing
quadpay & afterpay
•QuadPay - Your order is split into 4 installments paid over 6 weeks. •AfterPay - The Installment Feature allows you to pay for your purchase via a down payment and 3 subsequent installments or via four installments as set out on your Payment Schedule.