Payment Methods Flashcards
6 Major Payment Method Families
- Cards
- Wallets
- Bank Debits
- Bank Re-Directs
- Bank Transfers
- BNPL
Direct Debit (Lastschrift)
A direct debit is a permission to pull
- An individual or entity provides a merchant with their banking details and permission to withdraw funds directly from their account under specified terms (monthly subscription, rent payments)
Name of direct debit rail in the US
ACH
SEPA Akronym
Single Euro Payments Area
- Direct debit rail
SEPA - Risk & Reversibility
Direct debit transactions do not have an authentication layer, like 3DS or a CVV check
“Reversals can be hard to defend against”
- With SEPA a shopper can perform a chargeback and reverse the charge for 8 weeks after the transaction date and the merchant has no resource to dispute the chargeback beyond directly contacting the customer
Is direct debit authorized in real time?
No
It can take a few days for a merchant to receive a response that the transaction is complete, and then often a few additional days for settlement of those funds
Weakness of direct debit
- Payments take a few days to clear (or settle)
- BACS in the UK is typically 5 days
- SEPA in the EU is 3
- It can take a few days before a merchant knows that a payment has failed
- Fraud is also an issue with direct debit
Open Invoice (Kauf auf Rechnung)
“Here a shopper checks out but is not charged until fourteen to twenty-eight days after their goods are delivered”
- It is a very buyer friendly way to pay
- Shoppers get to try what they have purchased and decide if they want to keep it or make returns, then are only charged for what they decide to keep
NFC
Near field communication
It is a communication protocol that connects two electronic devices within 4 centimeters
Push vs Pull Methods - Difference
Does the payee pull the funds, or does the payer push them?”
Does the customer send funds (push), or do they give the merchant/ seller their banking info to let them pull those funds
Online Banking Methods
A way for a shopper to pay online with the funds in their bank account
A shopper initiates the payment from their bank account to a third party like a merchant - they push the funds
- These push methods are sometimes also referred to as bank redirect
Apple Pay & Google Pay Basics
They wanted to support a way for users to store their card details on their phone
They wanted cardholders to be able to pay over tap using NFC technology rather than having to carry around and swipe a piece of plastic
Do Bank Redirects Support Recurring Payments?
No.
But Stripe supports recurring for some methods by converting to direct debit
Do Bank Redirects support chargebacks?
No
Bank Redirects
Instead of entering their bank account information, customers are redirected to provide their online banking credentials to authorize the payment
Click to Pay
Click to Pay is best described as a digital wallet for credit and debit cards
The solution is provided by the card schemes
Thanks to automatic recognition of the end device used, consumers can immediately access all their stored card in the checkout of an online store and complete the purchase quickly and with just a few clicks in most cases
Ideal for guest checkout
In order to debit an account, you must:
- collect your customer’s name and bank account number in IBAN format
- Customers must accept a mandate that authorizes you to debit the account
Wer steht hinter der Girocard?
Das nationale Debitkarten-System der deutschen Kreditwirtschaft
Girocard - Kassenschnitt
Terminal schickt eine Datei mit allen Zahlvorgängen des Tages an den Acquirer
Girocard - Zentrales Clearing
Acquirer sammelt sämtliche Zahlungen über Nacht auf einem Treuhandkonto ein, sodass Sie die EC-Zahlungen bzw. diese, die über eine Girocard erfolgt sind, in der Regel schon am nächsten Tag auf Ihrem Konto gutgeschrieben haben
ELV Definition
Das elektronische Lastschriftverfahren, kurz ELV, ist eine Zahlungsmöglichkeit im Einzelhandel, bei der durch den Kunden per Unterschrift dem Händler eine Einzugsermächtigung erteilt wird
Was wird für ELV benötigt?
Der Kunde benötigt hierfür eine gültige Bankkarte, deren Magnetstreifen ausgelesen wird, um den Lastschriftauftrag zu erstellen
Ist ELV online oder offline?
Das Verfahren läuft offline ab und eine PIN-Eingabe ist nicht erforderlich
Risiko ELV
Beim offline ELV-Verfahren wird mit der Unterschrift eine Lastschrift genehmigt. Dabei wird die Kontodeckung des Kunden jedoch nicht überprüft und die Zahlung dementsprechend nicht sofort fällig. Bei der EC-Zahlungmit PIN hingegen wird die ausreichende Deckung sofort überprüft und die Zahlung gegebenenfalls abgelehnt
