Fed Details Faster Payment Processing Plan

Feb 12, 2015

The details of the Fed’s newest plan for faster payment processing have been released. EMB clients who are reliant on fast payment processing, such as e-cig merchant account owners, will find the progress encouraging. The Fed’s plans outline specific sectors of payment processing to receive upgrades as well as possible approaches to the undertaking.

Sluggish payment processing is the bane of many online and credit-based businesses. E-cig merchants, for example, often are hindered by state laws that restrict retail outlets, shipping, and basic commodities necessary for a Vape shop. As a result many of these businesses rely on online approaches to business as opposed to traditional retail locations. Online shops require credit and debit payment processing. Even if a business has an e-cig merchant account from eMerchantBroker.com, faster payment process will be a boon to merchants.

The Fed has targeted peer-to-peer payments, person-to-business transactions, business-to-person payments, high-value business-to-person payments, and business-to-business transactions. These five forms of payment account for more than 29 billion transactions in the United States. The Fed’s method for enabling these areas to be modernized is to utilize stakeholders to help identify effective approaches. An efficient transaction network would greatly benefit the payment processing industry as a whole, impacting even small businesses and merchants like those at EMB.

The proposal outlines a 10-year plan and cooperation and inclusion of the NACHA and Clearing House, though their involvement is unclear at present. The bottom line is that faster payment processing will benefit the US greatly. Small businesses will have less to worry about, particularly in the high risk sectors, as payments both in and out of their merchant accounts will be smoother and faster, allowing for a more efficient business model. The UK already features real-time payment processing and the calls for the Fed to modernize the US system are overwhelming. The Fed’s plan is a step in the right direction, but everyone involved hopes for accelerated efforts over the next year.

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