Faster, Real-Time Payments Don’t Get Everyone Excited

Jun 25, 2019

Last month, Visa acquired control of Earthport plc, which will enable account-to-account transfers.

London-based Earthport is one of the largest ACH networks in the world and allows Visa to expand real-time payment capabilities to the public. Visa acquired Earthport for $320.4 million after a fierce bidding battle with competitor, MasterCard.

The acquisition connects Visa to ACH and real-time networks in more than 85 countries, which allows the scheme to transfer money to those who don’t have Visa cards. Until this acquisition, Visa Direct service enables real-time push payments but receivers of money needed to have Visa cards to use it.

But Wait There’s More

Though Visa’s chief executive Alfred Kelly championed the acquisition, it was reported that he was lukewarm on the urgency of real-time payments. He wasn’t sure that everyone was going to hurry to adopt faster payments just because some people were making a big deal about it in the industry.

To date, New York City-based Clearing House Payments Co. (TCH), which is owned by many of the nation’s largest banks and vendors, like ACI Worldwide and Fidelity National Information Services Inc., has built or contributed innovations to faster-payments systems throughout the country.

Despite this, Kelly wondered whether there were a need and dependability for competing faster payments networks, cautioning that these types of systems don’t protect merchants and the public from unauthorized transactions. His main beef with real-time payments centered on fraud protections. With transactions completed in mere seconds, he wondered if the world was ready to handle transactions that cannot be returned easily. In a nutshell, he wondered whether real-time systems had the safeguards the world could count on with existing payments landscapes.

Separating Innovation from the Status Quo

The world is indeed abuzz with chatter of faster payments and how they will revolutionize the industry and all involved. Whenever something exciting and most often better, it shakes up the status quo.

For example, the Federal Reserve assembled a task force to explore real-time payments, but the world has heard little about what they plan to do next. This is probably because traditional institutions, specifically banks, are ready for the industry to be turned on its head. Instead, they would rather poke at the flaws.
In reality, it will be probably a least a little while before the payments industry completely embraces real-time payments and figures out how to monetize it. However, the companies that position themselves to profit early from its innovations will see the most opportunities when these tools are fully adopted.

In actuality, this is what Visa is doing. However, it also has forgotten to plant that seed of doubt that some competitors may pay attention to.

In the End

New, faster payment methods will impact everything from payroll disbursements to tax refunds to insurance payouts. And, those are just naming a few. Some part of every sector is thinking about how it can make real-time payments work for them.

No matter where you stand now, the accessibility of real-time payments will impact you in the next decade or so in the U.S. Those that invest now will see the most significant benefits later.

Apply for Merchant Account Services

If you are in need of merchant account services, contact EMB works with high-risk merchants with all types of backgrounds. Apply online today.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat