The Progress Faster Payments Has Had

Jul 24, 2017

The initial discussions around Faster Payments date back to 2013. However, there is still much work to be done and there are several major challenges to be overcome.

If you take the example of countries like the U.K., Australia, and Mexico, you’ll see they’ve applied a more prescriptive approach to the process of faster payments development. Standards and roles are established by regulators or central banks with the purpose of helping private-industry players act in harmony.

The Fed and the Faster Payments Task Force (FPTF) set “effectiveness criteria” and not standards. This enabled the existing players to have the time and space to develop their own proprietary solutions, in the wake of which 2 dominant players, Zelle and RPS, were created.

However, these solutions aren’t interoperable. Moreover, they only work with their member financial institutions (FIs). These 2 large, bank-dominated entities establish and keep under control all the rules, pricing, message formats, etc. It feels like these are going to be the new versions of Visa and Mastercard.

With this in mind, it’s important to turn to a reliable and trustworthy payment processor like for payment processing. EMB, voted the #1 high risk processor in the US, offers the best high risk payment processing to help you grow your business.

Standards and a framework aren’t the only issues playing a major with regard to faster payments. 6 other criteria are required for the creation of a new payment method. The progress registered in the industry so far can be found below:

  1. A clearing and settlement mechanism (CSM) accomplished through RPS.
  1. Real-time posting at financial institutions accomplished at all financial-institution members of RPS and Zelle.
  1. Credentials: Zelle requires social credentials (e.g. email addresses and phone numbers) as payment credentials, TCH still requires American Bankers Association routing-and-transit/account numbers. There are still steps to be taken in terms of credential standardization so they can be carried on mobile phones and presented like today’s payment cards. What is more, social credentials don’t operate well with corporate accounts.
  1. Risk Management: there are still things to be clarified in terms of how social credentials can be made secure and tamper-proof without resulting in unnecessary friction.
  1. Business/Economic/Legal Model: the merits of different pricing methods (e.g. interchange, sender/receiver pay, etc.) haven’t been deliberated. Also, how market dominance of a new duopoly is going to be prevented?
  1. Branding/Market Education: the thing that key stakeholders and consumer groups should receive information about upcoming changes with plenty of lead time is crucial.

According to BI Intelligence, as time passes, the number of transactions affected by faster payments will grow. P2P, B2B, C2B, and B2C payments, which comprised 12% of US payments volume in 2014, will get the most from such a system. Rapidly growing over time, these areas will increase the impact of the system. The implementation of faster payments will be a “mixed bag” for banks, because of additional costs associated with the implementation.


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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.

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