How to choose a Payment Processor

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ text_font_size=”12px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

By Mariana Almeida Marques

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ link_text_color=”#7CDA24″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

The Paytech industry is loaded with companies that offer innovative and disruptive services to enhance your company’s payment system. But in the midst of so many great products, it can be difficult to choose which one is the right fit for your company. In this article, we will guide you through some fundamental components to take into consideration when choosing a payment processor for your business.

 

Fraud protection

Payment processors can also be called Payment Service Providers (PSP) or Merchant Service Providers (MSP). Even though they all have fundamentally the same role in payment processing, there are some aspects that differentiate them. For example, some payment processors offer more features and support than others, such as tighter fraud protection and PCI compliance assistance.

Payment processors, along with Issuing banks, are responsible for verifying the cardholder’s payment details so that a transaction can be authorised. The more complex the verification process is, the more protection it offers against fraud. Thus, your payment processor should have strong fraud protection tools in place.

Besides the most widely used CVV and AVS verification, some payment processors use technology that collects data from billions of transactions. This data is then analysed and used to develop fraud patterns and automatically identify any fraud suspicion. Finding a payment processor that is PCI compliant gives you more reassurance that their payment processing is secure.

[/et_pb_text]Fraud protection in the payments industry[et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Authorisation rates

An authorisation rate indicates the percentage of transactions that were successful, against the total of transactions. Authorisation rates are important because a higher authorisation rate means less money lost with failed transactions. Some payment processors have better authorisation rates than others, so it might be worth doing some research to find which ones can better optimise your current rates and increase your profit.

 

Type of payments

Another point of differentiation is the type of payments they accept, as some payment processors focus on online payments, whilst others focus on in-store payments. It is worth considering what the company’s plans are, so you can choose a payment process that best accommodates your needs.

Square, for example, has a strong focus on Card Present transactions and is best known for the Point of Sale infrastructure it sells to restaurants and retail shops (though it also offer payment processing). GoCardless, on the other hand, specialises in Card-Not-Present transactions as deals with online payments such as Recurring Payments, invoices and subscriptions.

 

Pricing and fees

There are some unavoidable fees that the merchant has to pay for using a payment processor. Transaction fees consist of the interchange rate, markup fee and assessment fee, and are paid to Issuing bank, payment processor, card network and Acquiring bank- all the players that took part in the payment transaction. Flat fees are paid exclusively to the payment processors as a set monthly sum for their service.

[/et_pb_text]Debit and credit cards accepted by payment processors[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

Different payment processors have different pricing models, and whilst some are very transparent with the fees they charge, others can have hidden fees that are difficult to predict. Tiered pricing is often the most costly model: rather than paying an interchange fee directly, the merchant pays the payment processor a tiered rate, who is responsible for paying the interchange fees to the Issuing bank. Because the payment processor sets its own tiered rates, there can be hidden costs and fees can turn out to be unnecessarily expensive. So, it is important to be aware of the pricing and fees of each payment processor before making a decision.

[/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

More is better

Offering a variety of payment methods to customers means the merchant can better accommodate their different needs or preferences, which can ultimately result in more customers and more revenue. Imburse allows you to connect with any payment processor you want, so you have the freedom to partner with the ones that better fit your business’ needs and growth plans.

You also have the flexibility to add new payment processors easily and quickly, increasing your adaptability to customer and market changes. If you would like to know more about Imburse, please reach out to us via the contact button below. We will be happy to show you Imburse’s functionalities and what they can do for our business.

 

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

What is a PSP and how does it work?

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ text_font_size=”12px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

By Mariana Almeida Marques

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

Payment transactions are much more complex than one would think. Customers aren’t particularly interested in knowing how their money reaches the receiver’s account, however, for businesses that deal with payments on a daily basis, it can be useful to know the key factors of payment processing.

 

What is a PSP?

A PSP is a Payment Service Provider, also called Merchant Service Provider (MSP) or Payment Processor, and it is one of the key players in a payment transaction. PSPs process and manage the entire transaction, actually moving the funds from one account to the other, and serve as a mediator between the Issuing bank, card/payment network and Acquiring bank.

PSPs are responsible for authorising a payment and ensuring that funds are transmitted to the merchant’s account. Every business that takes debit or credit card payments needs to partner with a Payment Service Provider and pay them directly for their services. Some of the most well-known PSPs are PayPal, Square, Stripe, Adyen and GoCardless.

[/et_pb_text]Payment Service Providers help merchants to accept payments and manage their transactionss [et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” header_4_font=”Lato||||||||” header_4_text_color=”#000000″ custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

How does a payment transaction work?

Though it can seem confusing at first, the basis of payment processing is quite simple. When a customer purchases something online, scans a device or enters their bank information manually, the payment gateway collects the payment information from the Issuing bank and transmits it to the PSP. It is now common to see payment gateways and PSPs merged into the same company, such as Stripe or Braintree.

Verification

The Issuing Bank then needs to verify the information through the payment processor, making sure that the payment details are valid and that there are enough funds in the bank account to process the payment. The transaction also has to pass verification checks based on the card’s CVV number or AVS.

CVV means Card Verification Value, and is composed by 3 digits on the back of the card for Visa and MasterCard, or 4 digits in front of the card for American Express. AVS means Address Verification Service, and it is a system used to verify the address and zip code of the cardholder. Both of these are used to ensure the legitimacy of all the data and prevent fraud or identity theft. If all details are correct, the PSP authorises the payment.

Authorisation

Authorisation is one of the main steps of a payment transaction. Merchants can choose between an authorisation hold or capture. Essentially, an authorisation hold means that the payment is authorised by the PSP and ready to be transferred, but it is on hold for the merchant to review the details of the payment before accepting it.

Merchants might choose to put the payment on hold to double check that the payment is legitimate and avoid chargebacks. They can have up to one month to review the order before the authorisation expires, depending on the PSP they partner with. Customers see this as a “pending” payment in their bank account until the merchant approves it.

Capture, on the other hand, means that the payment can be transferred immediately and doesn’t have to go through the merchant for review after it was authorised. This is the most common option and takes only a few seconds.

[/et_pb_text]Payment Service Providers are responsible for authorising a payment [et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”18px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” header_4_font=”Lato||||||||” header_4_text_color=”#000000″ inline_fonts=”Lato”]

Settlement

From then on, it is quite simple. The Issuing Bank charges the cardholder and the payment is processed via a card network (Visa, MasterCard, American Express) until it reaches the Acquiring bank (merchant’s bank), who settles the payment and deposits the funds in the merchant’s bank account. Overall, the PSP’s job is to facilitate the movement of funds and ensures that the payment arrives in the account.

Connecting with the right PSPs and deploying payment technologies can be a stressful, expensive and time-consuming process. At Imburse, we understand the power that payments have in your business. Our mission is not only to connect companies with any PSP and technologies available on the market, but to do so easily, quickly and inexpensively.

If you have any questions regarding PSPs or would like to know more about Imburse, get in contact with us today via the button below.

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

A complete guide to SEPA Transfers

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ text_font_size=”12px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

By Mariana Almeida Marques

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

If your company is based in Europe, you might have heard of SEPA before. Created in 2008 by the European Union, SEPA is a widely popular payment scheme aimed at making international payments in Euros as easy and fast as domestic payments.

 

What is a SEPA bank transfer?

A SEPA bank transfer is a cross-border payment made within the Eurozone. The SEPA (Single Euro Payments Area) network allows countries that use the Euro currency to make international payments easily and inexpensively, just like a domestic payment. Some of the SEPA member-states don’t use the Euro currency, however, they have special agreements with the European Union so they can continue to benefit from this payment scheme.

Aside from harmonising international payments, SEPA also creates a single market for payment services, generating more competitiveness in this sector. SEPA is regulated and managed by the European Commission and the European Central Bank (ECB).

 

Who can get a SEPA bank account?

You don’t need a specific SEPA bank account to make SEPA payments. Your traditional bank account should already cover SEPA bank transfers if it is located within the Eurozone area. If you are based in a non-Eurozone country, you can double check which banks or financial institutions offer SEPA before opening an account with that bank or making a payment. In order to make a SEPA transfer, the transaction needs to be in Euro currency, otherwise you will have to use your national payment system.

[/et_pb_text]SEPA payment system in Europe [et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Which countries are included?

SEPA has 36 member-states, which include 27 European Union countries, 4 European Free Trade Association countries (Liechtenstein, Norway, Iceland, and Switzerland), 4 microstates (Vatican City, San Marino, Monaco, Andorra) and the UK. Though not all of these countries are part of the European Union or use the Euro currency, they have special monetary arrangements set in place to be able to use SEPA transfers. As long as you have an Euro bank account, you can make SEPA payments.

The full list of member-states is: Austria, Belgium, United Kingdom, Bulgaria, Cyprus, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Republic of Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Spain and Sweden, Switzerland, Monaco, Norway, Liechtenstein and Iceland.

 

Types of SEPA bank transfers: Direct Debit/Credit/Instant Credit

SEPA offers three types of bank transfers: Direct Debit, Credit Transfer and Instant Credit. The SEPA Credit Transfer works just like any other credit transfer, though you need to add the IBAN and occasionally the BIC (Bank Identifier Code) of both the payer and recipient. These numbers are used to authenticate the payment and to ensure that the money arrives in the right bank account.

SEPA Instant Credit is, essentially, a much faster version of a Credit Transfer. With Instant Credit, the payment arrives in the recipient’s bank account within just a few seconds due to direct routing from the Issuing bank to the Acquiring bank. This payment is also available 24/7, every day of the year, so money transfers won’t be affected by weekends and national holidays. Before you request a SEPA Instant Credit payment, you need to check that both your bank account and the recipient’s bank account accept this type of payment, otherwise you won’t be able to make it.

Lastly, SEPA Direct Debit is most commonly used for Recurring Payments such as monthly bills or subscriptions, in which the recipient (a company) has to request the payer (a customer) for the payment. As opposed to credit transfers, SEPA Direct Debit is a pull-payment, as the funds need to be requested by the recipient first. The payer must then sign a mandate (contract) to allow the recurring withdrawal of money from their account. The SEPA Direct Debit is divided into Core Direct Debit, offered to all individuals, and B2B Direct Debit, offered exclusively to businesses. It isn’t mandatory for banks to offer the B2B Direct Debit to their customers, so you need to check if your bank provides this service before setting up a business-to-business direct debit transaction.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

 

How does a SEPA transfer work? Pros and Cons:

A SEPA transfer works just like a domestic transfer. There are various advantages for businesses to use SEPA, including the flexibility to take payments from anywhere in the SEPA zone. This allows company to expand their services to other countries and reach different customer bases. It is also free, fast and secure.

The only downside of using SEPA is that it is only available to its 36 member states and within Europe, so it isn’t a viable solution for companies based in other continents, nor does it allow European countries to take payments from non-SEPA countries across the globe.

 

How long does a SEPA transfer take?

SEPA Credit Transfers take one business day to be processed and settled, so if you transferred money to any other SEPA country, it should arrive in the recipient’s bank account in one day. National bank holidays and weekends might affect the waiting times.

SEPA Instant Credit, as the name suggests, is an instant payment that is processed and settled within just a few seconds- much like any domestic payment. National holidays and weekends won’t affect the waiting times.

SEPA Core Direct Debit takes two business days to be processed, whilst B2B Direct Debit takes three business days. They might take longer to reach the recipient’s account should there be weekends and national holidays in between the process.

 

How much do transfers cost?

There are no fees for making or taking SEPA payments, so in most cases it is just like making a domestic transfer. If you are making a SEPA payment from a non-Euro country, however, you will have to pay a currency conversion fee, so that the money can be converted to Euros before the payment is processed. The cost of this fee depends on the latest exchange rate and your own bank.

[/et_pb_text]SEPA payment system in Europe [et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Are there transfer limits?

With SEPA Credit Transfers, the transfer limit is €999,999,999.99 (one cent less than a billion euros). Instant Credit allows you to transfer a maximum of €100,000 in one single payment, whilst Direct Debits depend on the agreement you made with the payer- they don’t have a transfer limit.

Imburse can connect your company to SEPA so you can expand your business in Europe. Our platform offers integration-free connectivity to the whole payment ecosystem and allows you to partner with the payment providers that best suit your company’s needs. Reach out to us by clicking the button below if you would like to know more about our solution.

 

 

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

How to accept global payments

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ text_font_size=”12px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

By Mariana Almeida Marques

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

Each country has their own national payment system that allows payments to be processed in a matter of seconds. However, international transactions are a much more complicated and costly process. Many companies do business with partners or sell to customers overseas, so they regularly make and receive payments across borders.

 

What are Global Payments?

Global payments, also named cross-border payments, are transactions where the payer and the receiver are based in different countries. Though it can also be between individuals, global payments are most commonly used by international companies that operate in different countries and need to pay to suppliers overseas or receive payments from customers in another country.

It is crucial for these companies that transactions are as fast and efficient as possible, as that is a key part of their business. In order to operate globally and make seamless international payments, companies need to work with payment service providers (PSP) that accept a wide range of payments. Choosing the right PSP enables companies to collect money more easily, predict their cash flow and know exactly what fees to expect (including currency exchange fees), as some banks and PSP charge higher fees than others.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Types of global payments

It is important to offer a variety of payment types to customers, as they can have different preferences. Credit card payments are a popular option, as customers only have to insert their bank account details as they would do for a domestic payment. The behind-the-scenes is a lot more complex than it looks on the customer end, with both the credit card provider and acquiring bank having to work together to validate and process the transaction.

Global bank transfers are processed similarly: payers are asked to insert the bank account details of the receiver, which can be the IBAN (International Bank Account Number) and BIC number (Bank Identifier Code), or the IBAN alone. Countries like the United States do not accept IBAN, so you will need the receiver’s BIC number to make the international payment. The rest of the work is on the Payment Service Provider.

Global payments can also be done through eWallets (purchasing a product online from an international company, for example), though the payment can only be considered a cross-border payment once it reaches the merchant’s account.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

 

Processing a global payment

On the customer side, making a global payment is quite simple- all customers have to do is insert the IBAN and BIC/SWIFT code of the receiver, so that the transaction can be routed to the right bank account. If the transaction is approved, they will receive the payment confirmation and the funds will be withdrawn from their account.

Though the funds are withdrawn immediately, they usually arrive in the receiver’s account in one to five working days. The waiting time can be affected by bank holidays and weekends (as these payments can only be processed on business days), the need to exchange currency, fraud prevention processes or mistakes in payment details.

From hidden fees to unpredictable waiting times, global payments can have multiple pain points depending on which PSP you partner with. It’s crucial to make sure that all fees are transparent and that the PSP you choose to work with is connected to as many acquiring banks as possible, in different parts of the world, as this facilitates the payment approval.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Are global payments secure?

Global payments are extremely secure. PSPs that offer global payment services comply with the SCA (Strong Customer Authentication) regulation set by PSD2 through 3D secure authentication. This means that their process of verifying customers’ identities and checking the validity of their bank accounts requires new authentication methods, such as biometrics, which significantly reduces the risk of cyber fraud. Most PSPs are also PCI-compliant.

 

Why to grow your business to accept international payments?

In today’s world, it is almost critical to accept international payments if your company wants to stay competitive. Restricting your business to a single location is also limiting your customer reach and opportunities to gain fraction in the market.

This is understandably a big decision to make that involves some financial investment and potentially higher costs due to exchange rates. However, it is also a necessary step not just to thrive but to survive in an industry that is packed with highly reputable companies that offer their services worldwide. Accepting international payments is part of the process if your business wants to expand.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

 

What are hosted international payments?

Hosted international payments are payments processed via a different hosted payment page, and not directly via your company’s website. This means that when your customers proceed to check out, they will be taken to another page to complete the payment. These hosted pages work with any kind of payment- international or domestic.

If you partner with a PSP that has strong payment security and is PCI compliant, this hosted page should safely capture and store your customers’ data. The hosted payments page feature helps you provide your customers a seamless payments experience whilst ensuring that their data is protected.

 

What are international payment gateways?

A payment gateway is a tool that transmits the payment data from the Issuing bank to the payment processor. When you purchase something, your details will be transmitted to the payment processor via a payment gateway. The payment gateway is also responsible for communicating to you if the transaction was authorised. Most often, companies offer gateway and processing services all in one.

An international payment gateway is a gateway that offers multi-currency payments and has its services translated to multiple languages, making it easier for businesses to take international payments.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” header_4_font=”Lato||||||||” header_4_text_color=”#000000″ custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

What global payment solutions are available?

There is a long list of trustable PSPs and payment gateways that offer global payment solutions. Some of the most popular ones include:

PayPal

Its gateway service is available in over 200 countries and regions and supports 25 currencies. PayPal is know to be a cheap, efficient and easy way to transfer money international. It counts with more than 220 million users, making it the most used payments platform worldwide.

Stripe

Stripe differs from other international payment gateways because it provides a range of APIs which allow companies to customise their services. It also covers over 100 currencies across the globe and offers a wide variety of payment types and support features.

Adyen

Adyen covers 150 currencies and accepts a wide range of payment methods. It is used by renowned corporations such as Microsoft, Spotify and eBay (who previously used PayPal as their main payment gateway).

Authorize.net

Authorize.net is a subsidiary of Visa Inc. and offers a customisable platform to take international payments online or in-person. The biggest downside of Authorise.net is that you can only use its services if your business is based in the US, the UK, Canada, Europe or Australia.

Other popular international payment gateways include FIS Global (previously WorldPay), Braintree (owned by PayPal), 2Checkout, Opayo, Checkout.com, Amazon Pay and Sage Pay.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

 

How to choose the best global payment gateway for my business?

All international payment gateways offer similar services when it comes to the currencies, languages and countries they cover. It is useful to consider what your company’s future plans are, as well as the amount of support and features you would require, so that you can find the payment gateway that best suits your company’s needs.

Imburse offers connectivity to the global payments ecosystem so you can make payments and collect money from your customers no matter where they are in the world. Making global payments is a key part of many international businesses, so it should be a simple, fast and cost-efficient process.

By connecting to Imburse, you can instantly connect with any international payment gateway and payment provider you want, gaining the freedom to expand to new markets at no additional cost. Do reach out to us here if you are interested in what Imburse can do for your business- our expert team is always happy to help you.

 

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

The benefits of offering savings platforms

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ text_font_size=”12px” header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” inline_fonts=”Lato”]

By Mariana Almeida Marques

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

More people are saving money

Saving money became more popular than ever last year, with UK households saving an all-time high of 29.1% of their income. The Covid-19 outbreak led to lockdown measures and business closures worldwide, which prompted people to drastically reduce their spending, leaving them with more money to put towards savings. Moreover, lack of job security and uncertainty about the future has made increasingly more people rethink their finances and realise the importance of setting some money aside.

UK households aren’t alone in this: household savings have increased steadily since 2013 in most countries around the globe. In the United States, the total savings deposits of American households has doubled since 2010, reaching its peak of $10.91 trillion last April. At the same time, however, a report from the non-profit AARP found that 51% of American don’t have any emergency savings whatsoever, partially because they don’t know how to save money.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” header_4_font=”Lato||||||||” header_4_text_color=”#000000″ header_4_font_size=”24px” inline_fonts=”Lato”]

 

What customers are looking for

Long gone are the days when offering a savings account was enough, and both banks and insurers are starting to realise this and to vary their product offering in order to reach new demographics and strengthen their connection with current customers. It is no longer about offering customers the possibility to put their money into a set account with a set interest rate, but about understanding their savings goals and helping them throughout their savings journey.

Individuals now have a general interest in saving money and taking control of their finances digitally. However, a lot of people tend to struggle with building up their savings, particularly millennials and gen Z. Low interest rates and lack of information around how much they should save and how exactly they can start saving play a part in keeping them demotivated and unwilling to set money side. That is why they need an easy and engaging platform that allows them to save money even without realising.

Offering user-friendly savings platforms that are customisable and easy to understand can help banks, insurers and retailers emotionally connect with the customer and build their sense of trust and loyalty to the company. Customers know that saving money is an ongoing and challenging process, so the most effective way for them to build up their savings balance is through small, reachable steps.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

How our MicroSavings platform can help

Imburse has developed a straightforward and easy-to-use MicroSavings platform to help you help your customers save money. Our main mission is to make payments easier and faster, whilst giving companies the freedom to expand globally. With our MicroSavings, you can not only make seamless payment transactions anywhere in the world, but be a part of your customers’ savings journeys and build long-lasting connections with them.

With our MicroSavings platform, you can set up as many saving programmes as you want for your customers, and edit them according to your customers’ preferences. The platform is highly customisable, so you can set up the tracking configuration as well as dynamic saving rules that your customers can choose from. These rules are based on behaviour and payment habits and include, for example, saving 10% of every transaction or rounding up their spending to the nearest pound. Different customers have different preferences, so allowing customers to personalise their savings rules is an incredibly valuable preposition.

After customers have selected their saving rule, they can link it to an existing card and start saving immediately. They will be notified via SMS of how much they have spent and saved over a certain period of time, which allows them to better monitor their spending whilst keeping motivated to continue their savings journey. Essentially, our MicroSavings platform offers an easy, stress-free and timesaving plan for your customers to save money successfully.

The financial services industry is now driven by innovative ideas and state-of-the-art technology. As financial enterprises and banks continue to push the boundaries of innovation, that leaves customers expecting a high level of creativity and effectiveness from the services they get. If they don’t find them in your company, they will find them somewhere else. As it turns out, saving money can actually be an easy and enjoyable task, so there couldn’t be a better time for companies to show this to their customers.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” header_4_font=”Lato||||||||” header_4_text_color=”#000000″ inline_fonts=”Lato”]

Contact us to know more

If you have any questions regarding our MicroSavings platforms and would like to discuss further, please reach out to us here. Our expert team is always happy to help you, and would love to show you what this platform can do for your business and your customers.

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

How to choose the right savings software

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text admin_label=”Text” _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ text_font_size=”12px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

By Mariana Almeida Marques

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” header_4_font=”Lato||||||||” header_4_font_size=”24px” header_5_font=”Lato||||||||” header_5_text_color=”#000000″ header_5_font_size=”24px” header_6_font=”Lato||||||||” header_6_text_color=”#000000″ header_6_font_size=”24px” inline_fonts=”Lato”]

Emergency funds are an important safety net to have, and the Covid-19 crisis proved that. Many people across the world have suffered financially, whether through job redundancy, furlough or uncertainty about the future. Whilst some could tap into their savings accounts to pay for necessities, others realised they weren’t financially prepared for income loss and unexpected costs.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Saving money: the issues customers face  

Older generations tend to have the biggest savings, whereas young people struggle the most with saving money. Those under 40 are more likely to have lost jobs and income due to Covid-19, being left with little to no money to save (Financial Times). This economic instability sparked an interest in younger generations to become more financially aware and take control of their money.

However, the lack of motivation and financial acumen, along with undefined saving goals, prevented many people from starting their savings journey. Questions arise on where to begin, how much to save, how often and even where to put the money. A startling 70% of UK workers live pay check by pay check and approximately 26% of UK workers have less than £1,000 in savings.

This means that they simply won’t be able to set aside a big sum of money every month or, if they do, chances are they will tap into their savings later in the month when their bank account starts to run low. Discrepancies in salaries, expenses and priorities make it impossible to create a one-size-fits-all savings solution that works for everyone.

[/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

Why it is important to offer a customisable savings tool?

From income, to regular expenses, to more general aspects such as age and gender, there are countless factors that influence how much people save. In order to successfully build up their savings, customers need a platform that they can tailor to their own individual needs. They are looking for savings tools that have flexibility, personalisation and convenience at their core, so those are three irreplaceable factors that must be considered when offering a service to customers.

The mission for financial institutions is to make saving money an engaging and enjoyable task for their customers, rather than a burdensome chore. The financial industry is packed with unique products and ideas, as innovative FinTechs take a customer-focused approach to develop saving tools that succeed in filling a gap in the market.

Traditional insurers now have the chance to innovate and partner with financial start-ups such as Imburse, to develop unique products and services that increase customer satisfaction and customer loyalty. The one secret sauce for success truly isn’t a secret anymore: giving customers exactly what they are looking for.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

How our MicroSavings platform can help

Take our MicroSavings platform, for example. It is easy to deploy and highly customisable, so your customers have the flexibility to configure a saving plan that best suits their needs. They can opt for rounding up their transactions to the nearest pound or saving a set percentage of each transaction they make. What is best, they will be building up their savings in pre-determined increments without having to actually make frequent decisions. The proposition is simple: your customers can save money every time they spend without the stress that often comes with having to make regular financial decisions.

The MicroSavings platform also allows you to interact with your customers regularly and build stronger relationships with them. The financial services industry is highly competitive and customers always have multiple options to choose from, so offering a savings tool that is customer-focused, simple and efficient will prevent your customers from looking for services offered elsewhere.

But perhaps the most relevant aspect of MicroSavings is how easy and quick it is to set it up: all there is to do is deploy the functionality, configurate the tracking options and choose the saving rules you want to offer your customers. After that, you will be ready to go.

The MicroSavings platform allows insurers to establish more meaningful relationships with their customers and play an active role in their financial journeys, all hassle-free, whilst saving time and resources. For more information on our MicroSavings platform, contact us here. Our team is happy to answer any questions you may have, offer advice and guide you through the platform.

 

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.9.2″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

What is Faster Payments?

[et_pb_section fb_built=”1″ _builder_version=”4.9.2″ _module_preset=”default” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.9.2″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.2″ _module_preset=”default”][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_font_size=”12px”]

By Mariana Almeida Marques 

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px”]

In an industry driven by innovation and speed, processing payments quickly is a necessity. Despite the complexity of payment processing, individuals and companies can now make payments within minutes. In the UK, that is thanks to the Faster Payments system.

What are Faster Payments?

Faster Payments is a payments system where electronic payments are, as they name says, processed quickly and arrive almost immediately to the receiver’s account. It is owned and operated by Pay.UK, the same retail payments authority that manages Bacs payments and cheques.

The Faster Payments Service (FPS) launched in 2008, aimed at reducing waiting times for bank-to-bank transfers. Faster Payments can be done via the internet on the bank’s website, mobile banking, telephone banking or physically at a branch. There are various types of Faster Payments, the most popular being single immediate payments (individual, one-off payments) that can be processed instantly, 24 hours a day, 7 days a week.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px”]

Other types of Faster Payments include forward-dated payments (one-off payments that can be scheduled for a later date), standing orders (automated recurring payments that a customer authorises and controls) and, lastly, Direct Corporate Access (DCA) payments, that allows banks’ corporate customers to send payment messages and make payments directly through the Faster Payments Service.

For all Faster Payments, there is a limit on the amount of money that you can transfer via the Faster Payments system, which depends on each bank’s own rules. The general maximum amount per transfer is £250.000.

 

How does Faster Payments work?

There are currently 35 banks and building societies directly connected to the Faster Payments system. Even if your bank isn’t a direct participant, all the other banks and building societies in the UK accept Faster Payments through a sponsor bank. To ensure that your bank and the receiver’s bank are able to take Faster Payments, you can check the list of direct participants here or verify a sort code here.

To make a Faster Payment, you need to provide the bank details (account number and sort code) of the receiver, so his/her identity can be identified. A reference to explain the nature of the payment is often optional, so it is up to the payer to include this.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px”]

Both the Issuing Bank (payer’s bank, where the money is coming from) and Acquiring Bank (receiver’s bank, where the money is being deposited) need to perform identity checks to ensure the legitimacy of the payment. If all information is valid, the Faster Payments system will credit the Acquiring Bank and inform your bank that the transaction is completed. You will also be notified that the payment was successful.

 

The difference between Faster Payments and Bacs

Both payment systems are very popular in the UK, but they do have their own differences. A Bacs payment takes three working days to clear, so the receiver will only see the funds in his/her account three days after the payment was initiated. Faster Payments, on the other hand, are often processed within seconds.

The Bacs payment system is most often used for Direct Debit and Direct Credit (for example, to pay salaries or bills), whilst Faster Payments is used for any individual bank-to-bank transfer between people or organisations, and not for Recurring Payments.

Imburse can connect your company to Faster Payments, BACS and all the other payment systems in the UK and globally. By connecting to us, enterprises don’t have to worry about individually integrating payment systems into their own IT systems, effectively saving valuable time, money and resources. Reach out to us here if you are interested in our solution, have any queries or would like to know more.

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.2″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.2″ _module_preset=”default”][et_pb_button button_url=”https://www.imbursepayments.com/contact/” button_text=”Contact Us” button_alignment=”center” _builder_version=”4.9.2″ _module_preset=”default” custom_button=”on” button_text_size=”16px” button_text_color=”#FFFFFF” button_bg_color=”#0937f2″ button_border_color=”RGBA(0,0,0,0)” button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

PSD2 impacts on the payments industry

[et_pb_section fb_built=”1″ _builder_version=”4.9.2″ _module_preset=”default” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.9.2″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.2″ _module_preset=”default”][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ text_font_size=”12px”]

By Mariana Almeida Marques 

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px”]

Payment services is a heavily regulated industry, which comes as no surprise considering the increasingly higher risk levels of fraud and cybercrime and the threats this poses to both companies consumers. Not only that, but there is also a much higher volume of transactions globally, as more individuals are preferring to make purchases and payments digitally.

 

What is PSD2?

PSD2, or Payment Services Directive, is an European directive for electronic payment services. It came into effect in 2018, as an amendment to the original PSD, created in 2007, and it plays a crucial role in regulating payment services and payment providers both in the EU and EEA. This directive regulates both Payment Initiation Services (PIS) and Account Information Services (AIS).

Whilst the PIS facilitates the online payment transaction by accessing the customer account and initiating the payment process, AIS is an online service that compiles information of a customer’s bank accounts, providing customers with an overview of their finances and allowing them to share these details with other financial providers.

PSD2 mandates stronger security for online transactions reinforced through multiple tools, such as a multi-factor authentication (MFA) that often includes biometric factors like face, voice or fingerprints to ensure that the payment is indeed initiated by the account owner and not somebody else. It also requires banks to share their customers’ bank account information with third-party banking services, providing that customers give their consent.

[/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px”]

 

What benefits does PSD2 bring to companies and customers?

The regulations imposed by PSD2 are quite clear, but its consequences aren’t as straightforward. Generally, this directive has a large impact on both Payment Service Providers (PSP) and customers, particularly when it comes to added security and collaboration between financial institutions.

PSD2 aims to strengthen customer rights, regulating the information collected and shared by banking services, as well as keeping transparency at the core of all services provided. The ultimate goal of this measure is to homogenise payment services as a whole, by enforcing the same regulations to each and every financial institution in the EU and EEA.

When it comes to sharing customers’ information with third-party banking services, it is understandable to see some initial reticence from big financial institutions, particularly those that have been around long before the technology advancements we are currently experiencing. This rule to share data is indeed a challenge imposed to traditional banks that are used to work towards a monopoly of customer data, making it more difficult for banks to become a one-stop-shop and to own all parts of the payment process.

 

The age of partnerships

PSD2’s goal, aside from building stronger online security in payment transactions, is also to boost innovation within the industry. This only reinforces an existing trend that is being adopted by more and more institutions: partnerships between big banks and smaller financial enterprises. Both are incredibly different and despite the competitive environment of the industry, there is proof that this type of collaboration is beneficial to everyone, including the customers. One of the many examples is the partnership between the automated lending platform Kabbage, and ING, an Amsterdam-based banking services corporation, which allowed ING to expand its business lending into France and Italy and more efficiently serve its existing customers.

Keeping services and databases in-house comes at a high cost for banks, because they are forced to spend millions purely in maintaining their current IT systems and ensuring these are relatively up-to-date. The prime time for the finance industry is now, when industry-wide changes are happening, innovative solutions are being launched regularly and customers are expressing their desire for easy access to seamless services that suit their needs. If financial institutions don’t adapt to industry changes now, it will become increasingly difficult to gain competitive advantage in the future.

FinTech start-ups offer big banks the possibility to adapt to industry-wide technological challenges and be ‘future-proof’, so they can be agile enough to easily readjust to the market as it changes. The finance industry is essentially controlled by customer demand and by the highly innovative solutions that are frequently being deployed.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px”]

Take Imburse and what it can do for your business. Imburse offers integration-free connection with the whole payment ecosystem, allowing companies to easily and quickly deploy the payment technologies they want, when they want. Partnering with Imburse means that you can adapt your services to your customers’ needs, expand your business worldwide and always be at the forefront of industry changes.

Whether you are paying out or collecting money, Imburse helps you perform a seamless transaction with the providers of your choice, whilst providing you with efficient management tools and resources to ensure security and build a solid database of customer behaviour. This is just one example of what collaborating with FinTechs can actually bring to the table.

 

Implementing PSD2 in the ecommerce industry

The deadline for the ecommerce industry to implement Strong Customer Authentication (SCA) rules was extended until the 14th of September this year, in light of the Covid-19 crisis. This means that by September, all payment service providers, card issuers and online retailers must be compliant with this rule and have stronger authentication methods set in place to protect their customers.

Online sales reached all-time highs last year, mainly due to lockdown measures that kept physical stores closed. This booming in online shopping magnified the whole e-commerce industry, which is expected to continue to grow globally at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027 (Grand View Research).

This is perhaps not surprising at all, considering that people are turning to digital to make purchases, and that online shopping does bring the commodity that customers now desire. However, it does intensify the need for stronger online security which will act as an extra layer in the payment process. This will benefit both the customers, protecting their money, and businesses, avoiding chargebacks and helping to build trust and reputation.

The consequences of PSD2 are actually mirroring existing trends within the payments industry: firstly, the concern with online security and, secondly, the need to partner with FinTechs that offer newer, more innovative services. Therefore, it serves as an extra push for companies to really invest in these trends and reap the benefits later.

 

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.2″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.2″ _module_preset=”default”][et_pb_button button_url=”https://www.imbursepayments.com/contact/” button_text=”Contact Us ” button_alignment=”center” _builder_version=”4.9.2″ _module_preset=”default” custom_button=”on” button_text_size=”16px” button_text_color=”#FFFFFF” button_bg_color=”#0937f2″ button_border_color=”RGBA(0,0,0,0)” button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]