Credit Card Protocols and Methodologies

When I introduce the Lucrotec bill paying innovation to CFO’s without fail they ask, “how does this work?” “How do you produce cash rebates from our payables?” The following protocols are a key element in understanding the answer.

PUSH payments – This is a pre-approved payment that is sent directly to the vendor account. The importance here is that there are no other banks of financial institutions involved. ACH, Direct deposit, and Wires are examples of push payments.

IVR – Interactive Voice Response takes input, processes it and returns a result. Banks utilize these systems to extend their services to a 24/7 format. Experience navigating these protocols can produce advantageous results.

Web Portals – These internet based virtual payment gateways offer the ability to make payments on-line. These have become common and rely on credit card networks to thrive.

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Lucrotec utilizes the following methodologies to expand payment options.

ACH -Automated Clearing House processes credit and debit transactions in batches. It is a computer based network for financial transactions exclusively for participating institutions.

WIRE – Wire Transfers are a point to point funds movement system. The truth about wire transfers is a two part series.   PART I     PART II

EFT – Electronic funds Transfers move monies from one bank directly to another Bank. An example of an EFT is Direct Deposit.

SEPA – Single European Payments Area, this standardizes electronic payments within the SEPA countries (note – this is a larger group than the EU).

NOFUSHU – Nofushu is used in APAC [Asia Pacific Regional] regions.  It’s a form of PAYPAL.

BOLETO – The Boleto Bancario is Brazilian payment method that is both virtual and physical.

Paypal – PayPal is a global online payment service that is computer based. In many ways it is like a global bank (everyone has their own account) that does its own exchange.

Electronic checks – Electronic checks use ACH networks to transfer money from different checking accounts.

Tomorrow we take a look at digital payment security elements.

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