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What makes it easy to send wire transfers, pay bills…. Payment systems! 💰 Contrary to common belief, there is more than one payment system! In fact, each payment method operates on a distinct payment system. Here's everything you need to know about it: ⁉️ Why Payment Systems Matter Banks are autonomous in designing and managing their systems and face no legal constraints on implementation. While this autonomy is advantageous for internal operations, it poses challenges when different banks need to communicate. The absence of a standardized framework leads to the need for a common ground — a payment system that facilitates seamless communication among disparate banking entities. 💼 The Role of Payment Systems Payment systems serve as the glue, establishing clear rules, workflows, and processing protocols for various payment methods. Their primary function is to ensure interoperability between different banks and financial institutions. 2️⃣ Types of Payment Systems: There are two types of payment systems: 1. Open-loop Payment Systems: 😀 => 🏦 => 🎛️ <= 🏦 <= 😀 In an open-loop system, where both parties (😀) operate through different banks (🏦), communication transpires via the payment system (🎛️). For instance, when a user initiates a transaction, their bank checks for sufficient funds and transfers the order to the payment system. This system then processes the order, notifying the receiver's bank and acknowledging the sender's bank. Examples of open-loop systems include Visa and MasterCard (link in the comments) 2. Closed-loop Payment Systems: 😀 => 🎛️ <= 😀 Contrastingly, closed-loop systems involve both parties operating within the same bank or organization. PayPal is an example of this system, allowing them to process payments internally without relying on external systems. ❓ Which system is predominant? Both systems are used in the while but the majority are open-loop systems. Closed-loop systems are rich in data given they know both the sender and receiver. However, they tend to progress slowly due to extensive in-house processes. That’s it for today! Next time, I’ll share the 6 payment systems available in nearly every country. If you liked this thread, share it with friends or those interested. And do not forget to follow me so you can get future posts in your timeline. 👋

Moving to electronic payments like ACH (Automated Clearing House) now will help your business, employees and vendors avoid disruption and be better prepared for the future.

Session 302 - What is Mambu Payment Gateway ? The Mambu Payment Gateway (MPG) provides a user interface that facilitates one-time and recurring transactions using the Single Euro Payments Area (SEPA) scheme. For more information, see Mambu Payment Gateway. The Payments APIs allows you to make, receive, reject, and refund standards-based payments. For more information, see our Payments API Reference. The MPG is tightly connected to Mambu's core banking features. Payments are routed to the correct Mambu accounts, payer and payee details are automatically inserted into SEPA messages when possible, and general ledger accounts are kept up to date both for payments and, if using Anti-Money Laundering (AML), for movements of funds into suspense accounts. Supported flows The Mambu Payment Gateway has been built according to the guidelines set out in the 2021 SEPA Credit Transfer and 2021 SEPA Direct Debit Core rulebooks and handles the following flows and messages: Credit Transfer Pacs.008.001.02 - Incoming/Outgoing payment Camt.056.001.01 - Incoming/Outgoing Recall request Pacs.004.001.02 - Incoming/Outgoing Authorize recall request Camt.029.001.03 - Incoming/Outgoing Deny recall request Pacs.002.001.03 - Incoming rejection/Outgoing positive status report Credit Transfer Inquiries Camt.027.001.06 - Claim Non-Receipt Pacs.028.001.01 - Status update on Recall of SCT Pacs.028.001.01 - Status update on Inquiry for existing camt.087 or camt.027 Camt.087.001.05 - Claim value-date correction Pacs.004.001.02 - Positive response for Request for Status Update on Recall Camt.029.001.08 - Sepa Inquiries response - Only negative confirmation at the moment for camt.087 Direct Debit Pacs.003.001.02 - Incoming/Outgoing collection Pacs.007.001.02 - Incoming/Outgoing Reverse collection (sent by Creditor to Debtor) Pacs.004.001.02 - Incoming/Outgoing Refund collection (sent by Debtor to Creditor) Pacs.002.001.03 - Incoming CSM rejection General prerequisites Before using Mambu Payment Gateway, you must have the following: SEPA registration A system to manage mandates for direct debit payments Access to an automated clearing house The ability to generate and register IBANs for accounts The ISO 20022 standard is a modern payment messaging format which was introduced in an attempt to standardise the rules of payment processing Supported use-cases: Initiating outgoing ISO 20022 Credit Transfers Receiving incoming ISO 20022 Credit Transfers Returns and/or Rejections Initiating outgoing ISO 20022 Requests for Cancellation (recalls) Receiving incoming ISO 20022 Positive and Negative responses to Cancellation Requests Receiving incoming ISO 20022 Credit Transfers Initiating outgoing ISO 20022 Credit Transfers Returns Receiving incoming ISO 20022 Requests for Cancellation (recalls) Initiating outgoing ISO 20022 Positive and Negative responses to Cancellation Requests #mambu #iso20022 #prashantpaymentblog

🚀 Exciting news from the finance sector! 🚀 A respected friend and colleague, Walter Akolo, has followed and kept his nose on #banking and #b2b payments for over a decade, just publishing a new blog post that dives deep into the nuances of #ACH and EFT payments. A little bias, but this is a must-read when you’re deciding which payment processing option is best for your business when paying your contractors, vendors, and employees. (And keep in mind, you CAN use the same gateway to process #payouts as you do in your account receivables department; you simply have a slightly different acceptance strategy that likely possesses more bells and whistles as far as the #fintech goes.) 😉 🔍 Key Insights Include: • Scope and Reach While EFT encompasses a wide array of #digitalpayment methods, ACH is tailored specifically for bank-to-bank transfers within a secure, dedicated U.S. network. • Processing Speed Need fast transactions? #EFT might be your go-to. (But don’t overlook the new Same Day ACH options that offer quicker transfers at a lower cost.) • Cost and Fees Understanding the fee structures may significantly impact your choice, especially when it comes to regular large transactions or business operations. 💡 Whether you’re a startup owner, a seasoned #entrepreneur, or just curious about the best ways to handle digital payments, 𝙪𝙣𝙙𝙚𝙧𝙨𝙩𝙖𝙣𝙙𝙞𝙣𝙜 𝙩𝙝𝙚𝙨𝙚 𝙘𝙧𝙪𝙘𝙞𝙖𝙡 𝙙𝙞𝙛𝙛𝙚𝙧𝙚𝙣𝙘𝙚𝙨 will prove fruitful for building a #payments acceptance strategy. 🔗 Check out the full article https://lnkd.in/eSFDGqf4 Gain a detailed breakdown and empower your financial decisions with the right knowledge! Have more questions? Let me connect you to Walter, my friends at Nacha, and ePayResources® to dig in deeper so you’re empowered to build business that drives innovation! 🙌 #finance #businessstrategy

ACH stands for Automated Clearing House. Automated Clearing House is part of an electronic payment system used to move money from one bank account to another. Transactions consisting of debits and credits can be moved through business-to-business (B2B), government and consumer transactions. ACH is an effective tool for business customers. It can change the day-to-day functions in ways you may not anticipate. Because it takes longer to send checks in the mail, ACH can move money on the same day with a click of a button. Plus, sending checks means you are sending your bank account number and routing number through the mail which can expose any business to fraud. Coulee Bank’s ACH product is competitively priced and is less expensive than mailing checks. You don’t need to pay staff to stuff envelopes or pay for postage. Instead, businesses can start a direct payment transaction using the ACH network via debit or credit. Examples of ACH transactions are payroll, accounts receivable, accounts payable, and vendor payments. These types of payments are quick, easy, and efficient. Contact us today to enroll in ACH! #BankWithConfidence #BankLocal #AutomatedClearingHouse

In light of the fact that in 2022, small and medium-sized enterprises (SMEs) in the UK were typically owed around £22,000 each in late payments, it makes sense that companies are turning to Direct Debit management services to support a more reliable cash flow. Read more about why you should use us for your direct debit collections here: https://lnkd.in/ed58At8g #directdebit #bacs #facilitiesmanagement #interbacs

The amendments, which have come into effect, were “necessary and expedient in the public interest”, the RBI said The Reserve Bank of India (RBI) on Thursday tightened rules for credit and debit cards used for business accounts.   The RBI asked business card-issuers to put in place an effective mechanism to monitor end use of funds.   Last month, the RBI had ordered Visa to stop using an unauthorized route to make business-to-business card payments which used fintech companies as an intermediary.   The regulator on Thursday also said that card-issuers cannot share data of customers with outsourcing partners, unless it is “essential to discharge the functions” of the outsourcing partners.   If data needs to be shared, explicit consent from the cardholder will need to be obtained, the RBI said, adding the storage and ownership of card data should remain with the card-issuer.   The amendments, which have come into effect, were “necessary and expedient in the public interest”, the RBI said.   The central bank has taken steps to ensure that cardholders have the freedom to choose their card network. On Wednesday, it said credit card issuers cannot enter into any pact with card networks that restrain customers from availing the services of other networks.   On Thursday, the RBI reiterated that card issuers should inform customers of the implications of making only the minimum payment due on cards.   Also, banks and non-bank finance companies won’t need prior approval to become co-branding partners of card-issuers, it said. First Published: <!-- -->Mar 07 2024 | 7:27 PM<!-- --> <!-- -->IST Source link

https://lnkd.in/gtXpS8Ue The payments landscape is evolving at an unprecedented pace, and businesses are embracing new ways to optimize cash flow, speed up transactions, and enhance relationships with vendors and partners. We're thrilled to share how Real-Time Payments (RTP) and Same-Day ACH are transforming B2B payments — and why both are crucial for today's financial ecosystem. 🌟 Real-Time Payments (RTP): With transaction limits now increased to $10M, RTP is a game-changer for high-value, time-sensitive payments. Whether it's supply chain settlements, real estate transactions, or urgent vendor payments, RTP offers: Instant settlement, 24/7/365. Enhanced flexibility for strategic cash flow management. Stronger supplier relationships through faster, reliable payments. 🌟 Same-Day ACH: Same-Day ACH continues to shine for predictable, moderately urgent payments, like payroll adjustments or invoice payments. With a $1M transaction limit and rapidly growing adoption, it’s ideal for: Cost-effective processing. Meeting deadlines with fast yet structured settlement windows. 🔑 The Takeaway: While RTP is the go-to for real-time needs, Same-Day ACH remains a cornerstone for recurring and scheduled payments. Together, they offer businesses unparalleled flexibility to manage their financial operations. #Innovation #productstrategy #B2BPayments #RealTimePayments #SameDayACH #PaymentSolutions #emergencysavings #earnwageaccess #payroll #secureact2.0

As we add instant payments, how do we manage the workload? Do we need to adopt all methods? How do we mitigate our risk with irrefutable transactions? These are just a few of the questions we help companies address as you transition from checks, cash, ACH, and cards to FedNow, RTPs, Zelle, and push-to-card. Don’t miss these practical ways to streamline your instant payments rollout.

As we add instant payments, how do we manage the workload? Do we need to adopt all methods? How do we mitigate our risk with irrefutable transactions? These are just a few of the questions we help companies address as you transition from checks, cash, ACH, and cards to FedNow, RTPs, Zelle, and push-to-card. Don’t miss these practical ways to streamline your instant payments rollout.