All Posts by Ursula Librizzi

What Are E-Commerce Payment Systems?

What Are E-Commerce Payment Systems?

E-commerce payment systems are softwares that facilitate the authorization of online payments. These systems are typically comprised of a shopping cart provider, a Payment Gateway and a Merchant Service Provider that work together to provide a fully functioning e-commerce platform. E-Commerce Payment Systems Defined Shopping Cart Shopping cart software is as its name suggests, a place for customers to add items to purchase, but it’s also so much more as an e-commerce payment system. Your shopping cart software will display your products and make it easy and intuitive to make an online purchase. Think of it as a virtual…

How Does ACH Payment Processing Work?

How Does ACH Payment Processing Work?

ACH payment processing operates via the ACH network. Every ACH transaction goes through a seven-step process involving six entities. These entities include the originator, the receiver, the originating depository financial institution (ODFI), the receiving depository financial institution (RDFI), an ACH operator and the National Automated Clearing House Association (NACHA). Below, we define each entity involved and the technical steps to ACH payment processing. Entities Involved in ACH Payment Processing Originator: An individual, corporation or other entity that initiates a transaction using the ACH network. Receiver: An individual, corporation or other entity that receives an ACH payment. ODFI: A financial institution…

The True Cost of Paper Checks

The True Cost of Paper Checks

Estimates suggest your business could be spending $24,540 annually just processing paper checks. Since 1865, checks have played a pivotal role in the United States payment system. Checks were the only non-cash option for the first 100 years of its existence, until credit cards were introduced in the 1950s. As payment technology has evolved, the need for checks has diminished — but the costs have remained. Here are three ways paper checks could be costing your business more than you realize: Money – According to NACHA, it costs on average $1.22 to process a paper check, which accounts for manpower…

Who Regulates Credit Card Processing Companies?

Who Regulates Credit Card Processing Companies?

Credit card processing companies, including Merchant Service Providers and Payment Facilitators alike, are regulated by a number of organizations. The Card Association Network, the Payment Card Industry Data Security Standard (PCI DSS), the National Automated Clearing House (NACHA), sponsor banks and the federal government all play a role in credit card processing regulations. Below we outline how each player is involved, what they regulate and, most importantly, the ways in which processing companies are not regulated. Credit Card Processing Company Regulators Card Association Network The Card Association Network is comprised of four major credit card networks: Visa, MasterCard, Discover and…