Signifyd’s Post

interesting we do much work in payments

It's fascinating how the In-Store Payments ecosystem is evolving! 🌟 This is a great infographic about the overall flow. Banking as a Service (#BaaS), embedded finance, and AI are poised to revolutionize the experience by leveraging facial recognition, voice-activated systems, and biometric authentication. These advancements will enable seamless and contactless payment experiences 💳🔍📱 #FinTech #Innovation #Payments #AI #BaaS #EmbeddedFinance #FacialRecognition #ContactlessPayments #RetailTech #FutureOfPayments #WomeninTech #Product Great summary Arthur Bedel 💳 ♻️ Looking forward to the updated infographic with the future payment 🚀📊

𝐓𝐡𝐞 𝐈𝐧-𝐬𝐭𝐨𝐫𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦 —Gateways, Acquirers, Issuers, Card Networks, Risk & Fraud providers and ISO/MSP. Easy peasy👇 For a payment transaction in-store to take place, a legacy payment process also mostly called Card Present (#CP), there needs to be a few players involved: 👉 Issuer 👉 Acquirer 👉 Card Network 👉 ISO / MSP 👉 Merchant 👉 Customer —— 🔸 𝐒𝐭𝐞𝐩𝐬 0-1: The cardholder opens an account in the #issuingbank (Wells Fargo, Chase, Bank of America…) and gets the debit/credit card. The merchant registers with ISO - Square (Independent Sales Organization) or MSP - The Transaction Group (Member Service Provider) for in-store sales. ISO/MSP partners with payment processors (Nuvei) to open merchant accounts. 🔸 𝐒𝐭𝐞𝐩𝐬 2-5: The acquiring process. The payment gateway (Cybersource, Nuvei, Braintree) accepts the purchase transaction and collects payment information/data. It is then sent to a payment/acquirer processor (who often can be the same as the payment gateway - Nuvei, Fiserv, Elavon, Inc.) which uses customer information to collect payments. The acquiring processor sends the transaction to the card network. It also owns and operates the merchant’s account during settlement, which doesn’t always happen in real time. 🔸 𝐒𝐭𝐞𝐩𝐬 6-8: The issuing process. The issuing processor talks to the card network (Visa, Mastercard, American Express) on the issuing bank’s behalf. It validates and operates the customer’s account. 🔸Once the funds have been credited/deposited, in this case for either debit or credit card transactions, the transaction is finalized ✔️ —— Today, this process is becoming more complex with additional services being offered by payment service providers including Banking-as-a-service (#BaaS), #embeddedfinance, Insurance Services etc which will ultimately provide additional value to customers and merchants altogether. 👉 The real question is, how can merchants continue to deliver a seamless experience to consumers (even improve that experience) while adding risk/fraud features and financial services to the mix? 👉 My guess? The hardware will play a major role and the in-store experience as we know it today will change entirely. It may sound unreal but it is happening 🚀 —— 𝐒𝐨𝐮𝐫𝐜𝐞: ByteByteGo, Hua Li for their great diagram! ✍️ The Payments Brews ☕️: https://lnkd.in/g5cDhnjC ✍️ Connecting the dots in payments... & Marcel van Oost

Chargebacks are inherent to card payments and continuously hamper merchant profitability every year. With our #OpenBanking APIs, merchants no longer have to worry about chargebacks and can start accepting guaranteed payments. Learn how in our blog: https://lnkd.in/dss3rm_u

📢 New AMEX Policy Ends CID Match Chargebacks: What It Means for Your Business, brought to you by Ben Herut, Chargeflow's new Director of Risk Discover how the April 2024 policy change by AMEX will transform your online sales process, eliminating fraud chargebacks for CID mismatches. Dive into our blog to learn how this impacts your business and explore how Chargeflow facilitates a smooth transition to these new standards. 🔗 https://lnkd.in/dY3Q7vb9 #FinTech #PaymentProcessing #ChargebackPrevention #AMEX #Chargeflow

CHARGEBACKS MONTH: How tech and consumer behaviour changed the digital marketplace Over the last decade, the approach to chargeback solutions in the UK has seen significant evolution, driven by advancements in #technology, changes in consumer behaviour, and shifts in the regulatory landscape. In the realm of finance and #ecommerce, chargebacks represent a crucial aspect of transactional security and customer satisfaction. This article explores how chargeback solutions have developed over the past ten years, adapting to a rapidly changing digital marketplace, based on input from attendees at the Merchant Fraud Summit… https://brnw.ch/21wFtYu

The chargeback—a forced refund to a cardholder’s account that is initiated by the issuing bank—turns 50 years old later this year. The maneuver, legislated into existence to foster trust in card payments at a time when few consumers were using them, has aged into a management headache for merchants. In an age of proliferating card usage and ongoing growth of e-commerce channels, chargebacks are easy to initiate and easy for consumers to win. Merchants, meanwhile, need help with the complex process of challenging chargebacks, heading them off in the first place, and avoiding the escalating consequences of a high chargeback rate. It’s an endurance test most merchants are not equipped to navigate alone. Login to read the report: https://lnkd.in/ebuEyNeQ

𝐓𝐡𝐞 𝐈𝐧-𝐬𝐭𝐨𝐫𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦 —Gateways, Acquirers, Issuers, Card Networks, Risk & Fraud providers and ISO/MSP. Easy peasy👇 For a payment transaction in-store to take place, a legacy payment process also mostly called Card Present (#CP), there needs to be a few players involved: 👉 Issuer 👉 Acquirer 👉 Card Network 👉 ISO / MSP 👉 Merchant 👉 Customer —— 🔸 𝐒𝐭𝐞𝐩𝐬 0-1: The cardholder opens an account in the #issuingbank (Wells Fargo, Chase, Bank of America…) and gets the debit/credit card. The merchant registers with ISO - Square (Independent Sales Organization) or MSP - The Transaction Group (Member Service Provider) for in-store sales. ISO/MSP partners with payment processors (Nuvei) to open merchant accounts. 🔸 𝐒𝐭𝐞𝐩𝐬 2-5: The acquiring process. The payment gateway (Cybersource, Nuvei, Braintree) accepts the purchase transaction and collects payment information/data. It is then sent to a payment/acquirer processor (who often can be the same as the payment gateway - Nuvei, Fiserv, Elavon, Inc.) which uses customer information to collect payments. The acquiring processor sends the transaction to the card network. It also owns and operates the merchant’s account during settlement, which doesn’t always happen in real time. 🔸 𝐒𝐭𝐞𝐩𝐬 6-8: The issuing process. The issuing processor talks to the card network (Visa, Mastercard, American Express) on the issuing bank’s behalf. It validates and operates the customer’s account. 🔸Once the funds have been credited/deposited, in this case for either debit or credit card transactions, the transaction is finalized ✔️ —— Today, this process is becoming more complex with additional services being offered by payment service providers including Banking-as-a-service (#BaaS), #embeddedfinance, Insurance Services etc which will ultimately provide additional value to customers and merchants altogether. 👉 The real question is, how can merchants continue to deliver a seamless experience to consumers (even improve that experience) while adding risk/fraud features and financial services to the mix? 👉 My guess? The hardware will play a major role and the in-store experience as we know it today will change entirely. It may sound unreal but it is happening 🚀 —— 𝐒𝐨𝐮𝐫𝐜𝐞: ByteByteGo, Hua Li for their great diagram!

Merchants are likely aware of the increasing difficulty in recognizing identical payment cards across the growing number of payment methods available to consumers today. Payment Account Reference (PAR) is a tool developed to help solve this problem. PAR is a unique identifier provided directly by payment schemes that acts as a bridge between various forms of cardholder data used when collecting payments. PAR provides a secure way to link multiple payment methods to a single account, benefiting both merchants and consumers. Leveraging Basis Theory's Reactors or Pre-configured Proxy, merchants can access PAR to improve their loyalty programs, reduce fraud, and better understand customer behavior. Learn more: https://hubs.la/Q025GLTv0 #paymentaccountreference #paymentprocessing #merchants

I've seen a lot of messaging recently about consumer protection on card payments and why this will always be a blocker for open banking adoption until pay by bank has a similar consumer protection service in place. I understand why many in the card industry see pay by bank as a threat that will eat away at margins, but they need to understand there are a lot more benefits to merchants and their customers than simply cost savings. ---> Why else would both Mastercard and Visa acquire open banking platforms if they didn't see the benefit of the solution and that it will have its place alongside card payments 🤷♂️ ---> The chargeback process is also not a silver bullet that will protect all customers making a purchase by card. There are various defence metrics that merchants can deploy to endeavour to win a chargeback dispute with a customer. ---> Exploring how pay by bank can align more closely with Section 75 of the Consumer Credit Act in the long run will be interesting for sure. I still feel though that a lot of the protection offered in principal is a comfort blanket for customers, when the reality of getting your money back is not simple. How many people in my network have had a difficult chargeback battle or opened a can of worms trying to get money back from a retailer via Section 75? I have gone through the ringer via both of these channels in the past and more people need to understand that they aren't necessarily the all out protection they are made out to be. --------------------------------------- Signifyd has a great chargeback process breakdown on their website for those who want to find out more on the mechanics of the process: https://lnkd.in/eDtjn932 Which? has a great breakdown on Section 75 as well: https://lnkd.in/ePQfV4ay