Module

E-payment processing

Posted on ecommerce4all

Click here to download the guide: “E-payment”

 

5 entities participate in the processing of the online transaction:

  • E-merchant (seller),
  • Buyer (the end user who performs the transaction),
  • Accepting bank, i.e. “acquirer” (a bank with which the e-merchant cooperates),
  • Card organization (Mastercard, Visa, Diners, etc.) and
  • Issuing bank, i.e. “issuer” (the bank – the issuer of the end buyer’s card)

For the accepting bank to process the online transaction, a payment gateway and a payment processor are required.

The payment gateway is the portal through which the accepting bank (merchant’s bank) receives the customer’s card data for further processing.

The payment processoris a technical tool that is an intermediary between the banks and the international card organization (Visa, Mastercard, etc.) to carry out online transactions. The payment processor can be owned by the bank (in-house) or the bank can use an external payment processor. The processor sends clearing data to card organizations to settle funds from card transactions.

Important notice

The e-merchant does not have any insight into the data from the buyer’s payment card. The same is transmitted through the payment gateway directly to the accepting bank – the merchant’s bank, which then through the payment processor (own or external) transmits the information to the card organization that communicates with the customer’s card issuing bank.

Click here to download the guide: “E-payment”

 

Online transaction clearing and settlement

Clearing is the exchange of transaction information between the merchant’s bank and the card-issuing bank, through the card organization’s Visa or MasterCard.

Settlement is the process of exchanging funds between the card issuer and the merchant’s bank to complete the transaction.

Card transaction clearing and settlement is facilitated through the Transaction Data Exchange, which is the electronic infrastructure that Visa and MasterCard have put in place to process financial transactions between their member banks. Clearing and settlement of the transaction occurs subsequently.

The settlement process may vary slightly from one processing bank to another, but generally goes through the following stages:

  1. After the end of the business day, the merchant’s bank submits the transaction information to the appropriate card organization (Visa or MasterCard).
  2. The card organization clears and settles and sends the transaction information to the card issuing bank and then settles it by crediting the merchant’s bank account and debiting the card issuer’s account.
    1. The amount credited to the merchant’s bank is equal to the amount of the transaction, minus fees and minus the commission (the fee that Visa and MasterCard charge for processing each card transaction).
    2. The amount debited from the card issuer’s account is equal to the transaction amount, minus chargeback fees determined by Visa and MasterCard.
  3. The merchant’s bank receives its funds, usually within 24 hours of the transaction, and credits the merchant’s account, usually within 48 hours of the transaction. The e-merchant receives an amount equal to the amount credited to the account of the bank processing the transaction, minus payment processing charges (the rates and fees the merchant has agreed to pay for card processing services).
  4. The card issuer informs about the transaction made on the cardholder’s account.

Benefits

Posted on ecommerce4all

Benefits for e-sellers

Having a Trustmark badge for an e-commerce website can bring several benefits. Here are some of the main advantages:

  • Increased Trust and Credibility

    Trustmark badges help build trust and confidence among visitors and potential customers. It assures them that the website has undergone a thorough vetting process and meets certain standards of security, privacy, and reliability.

  • Enhanced Conversion Rates

    Trustmarks can positively impact conversion rates by alleviating doubts or concerns customers may have during the purchasing process. When customers feel confident and secure, they are more likely to complete transactions, leading to increased sales.

  • Security Assurance

    Trustmark badges often indicate that the website has implemented security measures to protect customer data. This provides reassurance to customers that their personal and financial information is safe, which can help minimize the risk of fraud or identity theft.

  • Competitive Advantage

    In a highly competitive e-commerce landscape, displaying regional Trustmark badges can distinguish your website from others. It gives you a competitive edge by highlighting your commitment to secure and trustworthy online transactions.

  • Better Customer Experience

    Trustmarks can contribute to an improved overall customer experience. By prominently displaying trust badges, customers will feel more comfortable and satisfied during their browsing and purchasing journey.

  • Legal Compliance

    Obtaining and maintaining a Trustmark badge requires adherence to specific legal and industry standards. By meeting these requirements, your e-commerce website can ensure compliance with relevant regulations and guidelines.

It’s important to note that customers are becoming more discerning, so it’s crucial to choose reputable trustmark providers that resonate with your target market.

Benefits for e-buyers

Having a regional Trustmark badge for an e-commerce website provides multiple benefits to e-buyers. Here are some of the advantages:

  • Increased Confidence

    The presence of a regional Trustmark badge assures e-buyers that the website has been evaluated and meets specific standards set by trusted authorities in the region. This boosts confidence in the website’s credibility and reduces concerns about scams or fraudulent activities.

  • Authenticity and Legitimacy

    E-buyers often encounter unfamiliar websites while shopping online, especially while shopping from another market. A regional Trustmark badge serves as a signal of authenticity, indicating that the website is genuine and operated by a legitimate business. This helps buyers make informed decisions and reduces the risk of falling for counterfeit or unreliable websites.

  • Protection of Personal Information

    Trustmark badges often indicate that the website adheres to data protection and privacy practices. Knowing their personal information will be handled securely encourages e-buyers to share their data with confidence, leading to a safer online shopping experience.

  • Quality Assurance

    Trustmarks often require adherence to quality standards by the e-commerce website. This can include factors like product authenticity, reliable information, and good customer service. E-buyers benefit from these quality assurance measures as they can expect a certain level of product and service excellence while shopping from a website with a regional Trustmark badge.

  • Enhanced Transparency

    Regional Trustmark badges promote transparency in different aspects of an e-commerce website, such as return and refund procedures, terms and conditions, and customer reviews. This empowers e-buyers with the necessary information to make informed purchasing decisions, fostering a more transparent and trustworthy online marketplace.

  • Improved Customer Experience

    Trustmark badges can enhance the overall customer experience. E-buyers feel more at ease during the shopping process, resulting in increased confidence to make a purchase and a higher likelihood of repeat business.

Overall, Regional Trustmark badges play a crucial role in building trust, instilling confidence, and enhancing the shopping experience for e-buyers when buying cross-border, consequently benefiting both the buyers and the e-commerce website.

The Regional Trustmark badge shows to you as a consumer that:

  • The seller is a registered entity
  • The e-seller provides clear and precise information about his identity and contacts
  • The e-seller provides all information about the price and all related costs before the final step of ordering
  • The e-seller presents all conditions and contractual obligations of the buyer in a clear and understandable manner
  • The e-seller offers a transparent and generally accepted payment method
  • The e-seller offers transparent ways and conditions of delivery
  • All information about the Privacy policy and protection of personal data available for the information of users is available to the customer in an easy and comprehensible way.
  • The e-seller clearly and comprehensibly presents to the buyer all his legal rights and obligations, the right to withdraw from the contract, and a transparent product return policy
  • The seller has cookie policy available at the website.

Interview with Iris Tela from Rubicon (rbcn.al)

Posted on ecommerce4all

What does your company represent and what market needs do you want to respond to with your services? Why do you think you are needed in the market?

Rubicon was established in September 2020, with the aim of operating as an Electronic Money Institution. Rubicon is a fintech company, licensed by the Bank of Albania, set up to provide financial solutions and develop a payment processing network. Rubicon was born to meet the needs of the market, highlighted even more by the Covid-19 pandemic which pushed rapidly in the preference of remote solutions. To respond to these needs, the company has brought its innovative product, the PAGO platform, with which it was awarded as the StartUp of the year by the Albanian ICT Awards in June 2022. The Pago platform is the instrument that will develop the network of payment processing. Rubicon’s operational activities also include currency exchange, advisory services, or the implementation of fintech support solutions for the financial activities for which it is licensed.

Which market segment does your business serve? Are you aiming to carve out a niche clientele for yourself in the near future?

Rubicon, as the main object of its activity, aims to provide the best quality services to customers who have or do not have an account in a second level bank in the country. While the market is increasingly oriented towards a formalized economy, we are there to facilitate this process and go to the customer “where he is”, enabling him to perform various financial operations in a faster way, simpler, time-saving and free!

Our solutions consist of redefining and redesigning financial experiences. Rubicon plans to operate entirely online with no branches or agents. The headquarters of the company is in Tirana, but its scope is throughout the territory. Our future plans and our ambition are to reach the European level, to accommodate Albanians wherever they are.

What makes you stand out from your competitors? What innovation do you think you have brought? What is your competitive advantage?

Human resources and company culture are very important to us. We create spaces for creativity, originality and have tried to recruit new elements so that each individuality finds its voice, contributing to decision-making, and making each project its own. Thanks to a healthy climate of cooperation, in our company’s culture we have succeeded in making everyone’s individualities form parts of a puzzle, complementing and highlighting each other’s value. All together we give the best, much more than separately. Talent and heart seem a promising combination for the longevity of a startup.

The cooperative relationship with Mastercard will provide our customers with facilities that provide us with a competitive advantage in the market, compared to other IPEs. Also, cooperation with the Albanian Post, which with its network of branches provides coverage throughout the country, will bring us closer to customers without access to the banking system, potentially increasing this “market niche”.

Which businesses do you partner with to expand market share?

Although competitors, we also cooperate with other electronic money institutions, and with second-tier banks to evaluate untapped business spaces in common interest, where the interaction in the market follows the “win-win” rule, that is, all the parties win. We are aware that the cooperation is not only to be as close as possible to the client, but also especially towards the improvement of the existing legislation related to the ecosystems of FINTECH startups, to make it easier for the latter to do business, and networking in favor of results as fast and effective as possible, it serves to increase the lifespan/sustainability of startups in the market.

What are the challenges of ecommerce at the moment and how do you think to solve them?

The successful implementation of “open banking” will facilitate the interaction between IPEs and traditional banks with physical branches, increasing the speed of conversion of physical money to electronic, but also vice versa, in favor of the ubiquitous customer.

How do you see the future of the e-commerce sector?

We think that this sector will develop and the competition will increase day by day, followed by the further development of the service sector in the country. Also, the development of smart tourism and the agribusiness industry will inevitably be accompanied by innovative solutions, which will cause headaches for the competition. We remain optimistic about market developments in this direction, hoping for a fruitful cooperation with the legislators.

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