...Question 2 The company RFC encounters some difficulties in its payment processing system. Re-engineering might solve some of the issues faced by its managers. First of all, a full understanding of the five different problems RFC listed in this case study is necessary. Althought each one of these problem is unique, affects different part of the organisation and have their own consequences, they all come from the same origin: Complexity of information management and communication Process too slow Here are some possible changes that would improve the payment processing. Eliminate the possibility for the customer to pay in the Home Office directly. Indeed, the Home Office have huge difficulties to find informations about the payment, leading therefore to lots of errors of payments (Problem #1). This action will simplifies the payment processing and reduce factors of errors and clerical work (Problem #3). Beside, it will also reduce the time needed to make necessary file updating. There is a delay between the moment a payment is made, and the moment when this fact is taken into account in the business process database. Alas, no matter the changes in the processes, there will always be a little delay. In this case, batch payment processing is run every evening to update all data centrally, so the delay is at least 1 day long. An action would be to urge managers of the branchs to hurry to update particuliary important file each time they have to make a modification...
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...automate the functions of payment system through the clearing houses under the control of Bangladesh Bank, a program was launched in the name of Bangladesh Automated Clearing House (BACH) with two components- one is Bangladesh Automated Cheque Processing System (BACPS) and Bangladesh Electronic Funds Transfer Network (BEFTN). BACHS stands for Bangladesh Automated Clearing House System which is the nationwide electronic payment network that allows the actual clearing of electronic payments and payment-related information between financial institutions. It is an electronic network for financial transaction. The main benefits of making and receiving BACH payments are cost savings and convenience. BACH processes large volume of debit and credit transactions which are originated in batches. It has two components – 1. The Automated Cheque Processing System and 2. The Electronic Funds Transfer. The Bangladesh Electronic Funds Transfer Network (BEFTN) operates as a processing and delivery centre providing for the distribution and settlement of electronic credit and debit instruments among all participating banks. BEFTN is the central clearing facility, operated by Bangladesh Banks that receives entries from originating banks, distributes the entries to appropriate receiving banks and facilitate the settlement functions for the participating banking institutions. BEFTN is a highly reliable and efficient nationwide batch-oriented funds transfer system which provides for the...
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...Whether or Not Public Sector Enterprises Accept Electronic Payments Gregory L. Jackson University of Maryland University College AMBA 600 - 9046 May 6th, 2014 Professor Susan Malone The Impact of Convenience Fees 2 Executive Summary This research study examines the use of convenience fees and how they have impacted whether or not public sector enterprises accept electronic payments. As budgets continue to shrink for U.S. government agencies, many local, state, and federal officials are struggling to provide services their citizens have grown accustom to in business environments. Convenience fee based electronic payment programs provided by many governments enable citizens to pay for obligations such as taxes, utility bills, and court costs through secure websites, interactive voice response (IVR), and even mobile payment capabilities. Fortunately, there is a solution for public sector enterprises to offer valuable services to their citizens without...
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... | 5 | Old payment and settlement system | 7 | Clearing activities in old system | 7 | Difficulties in old system | 9 | New payment and settlement system | 10 | About MICR cheques, its processing ,benefits and strength | 11-14 | About automated clearing house | 14 | Overall contribution over our economy | 16 | Chapter3 - Criticism | 19 | Chapter4 - Conclusion | 20 | Chapter5 - References | 21 | 1. Introduction 2. About Bangladesh banking and the new era 3. Old payment and settlement system 4. Difficulties of old system 5. New payment system Executive Summary This Term Paper is about the “contribution of MICR cheques & Automated Clearing House over our economy”. It is great pleasure for us that banking industry of Bangladesh is growing and modernizing its activities to a great extent. So in my term paper I have tried to demonstrate our new payment and settlement system, which recently adopt new methods and systems. As we know Bangladesh bank launched new MICR cheques as the initiative of automation system to all over banks in our country. So considering the importance of having a modern state-of-the-art payment and settlement system, Bangladesh Bank has actively worked...
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... | Executive Summary This paper aims to summarize the plans and strategies that will generate sales of merchant processing services and equipment for Franchise Card Network. Franchise Card Network (FCN) is a vehicle solely dedicated to delivering the best possible payment processing solutions to franchisors and their franchisees. FPN works exclusively in the franchise space, utilizing the extensive knowledge of its human resources in the areas of retail and payment processing to facilitate the unique needs of franchise systems. FCN’s goal is to provide fair, fully disclosed pricing and empowering merchants to take control of their payments processing costs. Franchise Card Network (FCN) believes in the promise and value small to medium-size businesses offer the marketplace. Through innovation and experience, Franchise Card Network helps guide these businesses in managing the opportunities and risks associated with establishing and expanding their payment processing capabilities. Franchise Card Network will empower its clients with rapid application approvals, with most applications being approved within two business days. In addition, FCN’s investment in technology will effectively harness and exceed the growing demands in the processing industry. Therefore, allowing Franchise Card Network to support nearly every vertical market with increasing and profitable business solutions. Whether opening a new business...
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...MasterCard Incorporated Company Profile Publication Date: 17 Jun 2011 www.datamonitor.com Europe, Middle East & Africa 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7551 9090 e: euroinfo@datamonitor.com Americas 245 5th Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Asia Pacific Level 46 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8088 7405 e: apinfo@datamonitor.com MasterCard Incorporated ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities...
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...article examines the cash management and payments developments in India, in terms of bank offerings and new corporate best practice. Traditionally having a paper-based clearing system involving not only high processing cost but security risk, cash management in India has certainly undergone a paradigm change. From a product-centric approach, the focus for almost all banks today has shifted emphatically to the customer. And success is all about bringing the maximum possible delivery channels to the prospect's doorstep. In the rapidly transforming world of business, banking faces its biggest challenge yet - constant change. With every bank seeming to offer service possible, efficiency coupled with innovative value added solutions have emerged as the key business differentiators that affect a bank's bottom line. Confronted with shrinking deposits/margins, rising customer expectations and intensifying competition, banks must at all times strive to be a step ahead of industry standards. At the same time, they cannot lose sight of credit risk, a natural byproduct of the increasingly complex relationships in today's dynamic markets. For some time now, technology has been the key driving force behind every successful bank. In such an environment, the ability to recognise and capture market share depends entirely on the bank's competence to evolve technically and offer the customer a seamless process flow. The objective of a cash management system is to improve revenue, maximise profits...
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...Bank Accounting (FI-BL) Release 4.6C HELP.FIBL Bank Accounting (FI-BL) SAP AG Copyright © Copyright 2001 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft , WINDOWS , NT , EXCEL , Word , PowerPoint and SQL Server are registered trademarks of Microsoft Corporation. IBM , DB2 , OS/2 , DB2/6000 , Parallel Sysplex , MVS/ESA , RS/6000 , AIX , S/390 , ® ® ® AS/400 , OS/390 , and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation. INFORMIX -OnLine for SAP and Informix Dynamic Server Informix Software Incorporated. ® ® ® ® ® ® TM ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® are registered trademarks of UNIX , X/Open , OSF/1 , and Motif are registered trademarks of the Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C , World Wide Web Consortium, Massachusetts Institute of Technology. JAVA is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP EarlyWatch...
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...Chapter 11 E-Commerce Payment Systems Learning Objectives Upon completion of this chapter, you will be able to: 1. Understand the shifts that are occurring with regard to online payments. 2. Discuss the players and processes involved in using credit cards online. 3. Discuss the different categories and potential uses of smart cards. 4. Discuss various online alternatives to credit card payments and identify under what circumstances they are best used. 5. Describe the processes and parties involved in e-checking. 6. Describe payment methods in B2B EC, including payments for global trade. Content Opening Case: Pay-per-View Pages: The Next iTunes 11.1 The Payment Revolution 11.2 Using Payment Cards Online 11.3 Smart Cards 11.4 Stored-Value Cards 11.5 E-Micropayments 11.6 E-Checking 11.7 B2B Electronic Payments Managerial Issues Closing Case: The Check Is in the Network Answers to Pause/Break Section Review Questions Section 11.1 Review Questions 1. Describe the trends that are occurring in cash and non-cash payments in the United States. Today, we are in the midst of a payment revolution, with cards and electronic payments taking the place of cash and checks. In 2003, the combined use of credit and debit cards for in-store payments for the first time exceeded the combined use of cash and checks (Federal Reserve System 2004). 2. What types of e-payments should B2C merchants support? For online B2C merchants, the implications...
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...America: EMV Payment Card Industry Standardization Author: R.B. America: EMV Payment Card Industry Standardization Unfortunately for the American Payment Card Industry (PCI) infrastructure, the mandated adoption of the Europay, MasterCard, Visa (EMV) standard is futile of addressing the critical deficiencies of the de facto requirements, by the Payment Card Industry Security Standards Council (PCI SSC), protecting sensitive data in memory, transit or at rest. Therefore, PCI key players: such as cardholders, merchants, acquirers, and issuers alike must continue to stay vigilant of the risk by threat agents attempting to exploit vulnerabilities in the payment processing system in order to extract unauthorized sensitive data or information. First, EMV is a two decade old technology standard that originated in Europe in the early 1980’s. Its primary objective is to address fraud that results from extracting card issuer and cardholder data that is encoded on a magnetic stripe (Track1 and Track 2) on the backside of debit and credit payment cards. Second, while it can be argued that the EMV technology standard has its pros, such as providing a single payment card a mechanism to sustain multiple applications. The implementation of the EMV standard does not address many of the critical issues or methods used to extract Track 1 and Track 2 data in the card payment transaction stages. Such as, vulnerabilities in payment applications and devices or encryption methods of...
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...4.1 ELECTRONİC PAYMENT SYSTEMS (EPS) Issues of trust and acceptance play a more significant role in the e-commerce world than in traditional businesses as far as payment systems are concerned. Traditionally, a customer sees a product, examines it, and then pays for it by cash, check, or credit card (Figure 4.1). In the e-commerce world, in most cases the customer does not actually see the concrete product at the time of transaction, and the method of payment is performed electronically. Figure 4.1 Traditional payment scheme EPSs enable a customer to pay for the goods and services online by using integrated hardware and software systems. The main objectives of EPS are to increase efficiency, improve security, and enhance customer convenience and ease of use. Although these systems are in their immaturity, some significant development has been made. There are several methods and tools that can be used to enable EPS implementation (Figure 4.2) Figure 4.2 Electronic payment scheme While customers pay for goods/services by cash, check, or credit cards in conventional businesses, online buyers may use one of the following EPSs to pay for products/services purchased online: • • • • • • • • • Electronic funds transfer (EFT): EFT involves electronic transfer of money by financial institutions. Payment cards : They contain stored financial value that can be transferred from the customer's computer to the businessman's computer. Credit cards : They are the most popular...
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...article examines the cash management and payments developments in India, in terms of bank offerings and new corporate best practice. Traditionally having a paper-based clearing system involving not only high processing cost but security risk, cash management in India has certainly undergone a paradigm change. From a product-centric approach, the focus for almost all banks today has shifted emphatically to the customer. And success is all about bringing the maximum possible delivery channels to the prospect's doorstep. In the rapidly transforming world of business, banking faces its biggest challenge yet - constant change. With every bank seeming to offer service possible, efficiency coupled with innovative value added solutions have emerged as the key business differentiators that affect a bank's bottom line. Confronted with shrinking deposits/margins, rising customer expectations and intensifying competition, banks must at all times strive to be a step ahead of industry standards. At the same time, they cannot lose sight of credit risk, a natural byproduct of the increasingly complex relationships in today's dynamic markets. For some time now, technology has been the key driving force behind every successful bank. In such an environment, the ability to recognise and capture market share depends entirely on the bank's competence to evolve technically and offer the customer a seamless process flow. The objective of a cash management system is to improve revenue, maximise profits...
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...Statement of the Purpose The proposal entitled, “Implementation of reloadable debit card on New Era University” aims to attain the following: * To have an easy transaction in payment purposes of the consumers * To lessen the hassle of counting paper bills and coins * To have an accurate record of all billings in school facilities * To lessen the incident of losing large amount of money Background of the Purpose Prepaid card are rapidly growing having been introduced as an alternative to cash. One of the new trends in payment transaction today is the use of reloadable debit cards. These are actually prepaid cards that can be reloaded with value after it is issued. Within the university, for example, a student cannot control overspending of purchases (e.g.) and as a consequence, he might be forced to bring a large amount of money. Doing so, he is also carrying the risk of losing the money because of carelessness. Moreover, taking into consideration that he must convert first his cash into chits before he could buy is also another picture and the cueing problem of the long lines awaits every student which as a result, time-consuming. Whereas, it is also a difficulty on the administration to maintain transactions on a manual basis. The recognition of income would be another question. There are recent events of fraud and mischief with school chits for personal advantages. The impression to their subordinates would not be good on handling such situations...
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...ELECTRONIC PAYMENT SYSTEM Electronic Payments or e-payments refer to the technological breakthrough that enables us to perform financial transactions electronically. It can also be explain as a way of paying for a goods or services electronically, instead of using cash or a check, in person or by mail. TYPES OF ELECTRONIC PAYMENT SYSTEM Some of the types of electronic payments are the following; • Credit Card • Debit Card • Smart Card • E-Money • Electronic Fund Transfer (EFT) CREDIT CARD Credit card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it, which is use to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain period after which he/she can pay the credit card bill. It is usually credit card monthly payment cycle. Following are the actors in the credit card system. • The card holder - Customer • The merchant- seller of product who accept credit card payments. • The card issuer bank - card holder's bank • The acquirer bank - the merchant's bank • The card brand - for example , visa or MasterCard Credit card payment process STEP DESCRIPTION 1 Bank issues and activates a credit card to customer on his/her request. 2 Customer presents credit card information to merchant site or to merchant from whom he/she want to purchase a product/service. 3 Merchant validates customer's...
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...are not paid by consumers. An interchange fee is a small fee paid by a merchant’s acquiring bank to a cardholder’s issuing bank as part of an electronic payment card transaction. Interchange facilitates the global electronic payments system and serves as a critical tool to balance the benefits and costs of that system among its participants. This fee allows merchants to enjoy all the benefits they seek from card acceptance, including security, guaranteed payment, fraud protection and speed of service. Each merchant is able to negotiate its own card acceptance costs with its acquiring bank, and similarly, the merchant’s bank and card-issuing bank are also able to bilaterally negotiate their fees. To overcome the inefficiency of thousands of separate negotiations, however, MasterCard sets “default” interchange rates that may be used in the absence of separately negotiated arrangements. MasterCard publicly discloses all of its interchange rates on its website, and merchants are free to disclose these fees to their customers. For further information, please visit www.mastercardmerchant.com. Myth: Reducing and capping interchange will benefit consumers, so enacting the Durbin Amendment is a positive development. FACT: For more than four decades, interchange has been set to balance the costs, risks and rewards of electronic payments for cardholders, merchants and issuing banks. Even prior to the price caps enacted by the Durbin Amendment’s implementation, consumers saw the unintended...
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