Tag Archives: transactions

BNPL Schemes Make It Easy To Spend, But Harder To Understand the Risks [2025 Update]

The concept of buy-now-pay-later transactions sounds convenient for many people. The idea allows a person to purchase a product on credit and then pay for it after an interest-free period. The customer can also pay for the item in installments. Online retailers have been using BNPL schemes for a while. They have also become available at some physical sites as of late.

While BNPL systems are appealing, there are many risks to consider. Sometimes a person might have less power over one’s purchase than what someone might expect. It is also tough for many people to fully understand some of the things they’ll get out of their schemes.

Sour: Statista

A BNPL provider could also help reduce the risks associated with these schemes by being more transparent and easy to understand. A BNPL team can work with security systems to protect everyone’s data, plus it could provide clear terms and conditions that people will want to read and understand. It will still be up to the customer to watch for the risks that come with whatever one wishes to manage.

BNPL Schemes – Different Limits

A BNPL scheme will often subject customers to lower transaction limits than what their credit cards might support. A BNPL website or service will require a customer to provide personal data before completing a transaction. A customer might need to allow access to websites or services that can review someone’s credit risk.

Alternative credit scoring may also work in some cases. The effort entails non-traditional methods for reviewing someone’s credit risk. Instead of focusing on what credit bureaus say, an alternative credit scoring process can entail looking at things like these:

Bill payments for various entities
What someone does on social media
Employment history
Property records
Any transactions someone makes with a government

These points are radically different from whatever traditional credit bureaus can review. The review efforts make it that someone might have less purchasing power than if someone used a traditional credit card. The review process may also be invasive to where more of one’s data is being used in ways that someone might not prefer or expect.

Extensive Fees

Most people who use BNPL services don’t think about the fees they would pay if they don’t handle their work well. The costs can be significant at times:

Some BNPL fees can be several percentage points of the value of a purchase. These fees will keep the BNPL system operational while ensuring it can maintain a profit. The charge is also reflective of the convenience the system provides to its customers.
Late fees can be more than 50 percent of the value of one’s outstanding balance in some cases.
Some services may not have caps on how high the late fees can get.
A service could suspend an account if someone doesn’t complete a payment on time.

But a BNPL service won’t charge interest on outstanding payment amounts like what a credit card company would do. BPNL will gain its revenue from merchant fees instead of through annual fees or interest debt.

Payment Data Storage Is Necessary

A BNPL system will require a customer to store one’s payment data in a network. The customer’s security risk will be higher due to one’s data being open in a new platform. There’s no guarantee that a BNPL setup will always be secure for regular use either, producing a significant worry surrounding what someone can get out of the work.

Customers will put their data at risk of being lost when they deal with these transactions. But this doesn’t have to be as much of a concern if a BNPL provider manages things right. A BNPL solution should utilize the proper security features to ensure its safe operation. A BNPL system can work with many things, including:

Password protection, including two-way verification processes
Firewalls, including hardware and software-based ones that the BNPL service operates
Encryption support, especially for credit card data
Tokenization of transactions to replace personally identifiable information on a network

BNPL solutions will increase how many transactions a business can offer, as BNPL efforts can make a business more accessible and useful. But a BNPL service will not be as effective if one isn’t aware of everything that can work.

Complex Terms and Conditions

The terms and conditions surrounding BNPL schemes can be too convoluted for people to figure out. People who don’t understand these terms might fall victim to some of the risks associated with a BNPL deal. The BNPL app Klarna has an extensive terms and conditions listing that takes close to an hour for a person to read, for example.

The greatest worry is that most people don’t think to read the terms and conditions. The computer game retail site Gamestation had an April Fools’ Day gag this year where it said in its terms and conditions that anyone who didn’t click on a specific link that day when making a purchase would forfeit their souls to the website.

The prank showcased how people never read these terms before making purchases. It shows that people are often willing to skip these details when trying to complete a transaction. They want to pay for items right now and aren’t willing to wade through complex terms.

BNPL services are traditionally transparent when discussing their fees. They want to prevent their customers from collecting more rollover debt than what they can afford. But the terms and conditions sections can be complex and thorough to where it might be tough for people to afford certain things that they think they could purchase right away.

Caution Is Critical

BNPL schemes can be useful when ensuring people can get more access to different items they want to purchase. But a BNPL solution needs the right planning. Every customer must be capable of recognizing the risks associated with such a transaction. Failing to understand the concerns of a BNPL deal can be dangerous, especially considering how one’s financial data is being made open to everyone in the process.

Why Are Apple Pay, the Starbucks App, and Samsung Pay More Successful Than Other Mobile Wallets?

The odds are you’ve heard about many online wallet solutions. These systems let customers link their credit or debit cards to a wallet setup. The customer can then complete a transaction through one’s phone or another NFC-enabled device. It offers a convenient way to handle payments. It ensures people can complete transactions with physical cash or with a credit or debit card.

There are two mobile wallets that are more successful than the others. Apple Pay has become a staple in the mobile payment industry, while Samsung Pay has also been growing in prominence.

There’s also one unique app that is rising in prominence. The Starbucks coffee chain has a dedicated app people can use when purchasing items from various Starbucks locations.

eMarketer writes that there are about 25 million Apple Pay users and 12 million Samsung Pay users in the United States. These totals are based on how many people have completed at least one transaction with these wallets in the last six months. The Starbucks app has an even greater user base of about 28 million.

But what makes these three payment solutions more popular than other mobile wallets? Let’s take a look at what makes these so prominent.

Apple Pay

First, let’s look at Apple Pay, the most prominent of the online wallet programs around. Apple Pay was one of the first such wallets out of the gate, as it was introduced in 2014.

Apple Pay uses NFC technology to transfer payment data. A user can waive an Apple Pay account over an NFC reader to transmit funds. The system can work on many Apple devices, including the iPhone and Apple Watch.

Apple Pay offers many positives:

Customers don’t need online connections to use Apple Pay. All payment data stays in the cloud, ensuring the content can move forward as necessary.
Apple Pay uses a biometrics-based system where the user can touch a specific part of one’s phone or watch or another device that uses the setup. The two-part ID system ensures only the right person will initiate the transaction.
Most payment networks and banks support Apple Pay. The system ensures people can use the wallet in more places.

The immense popularity of the iPhone and other Apple devices will also ensure that Apple Pay will become more accessible in the future. As more people use the latest Apple devices, more retailers will accept Apple Pay payments.

Like with many other Apple features, this only works on Apple devices. But Apple’s products are still popular enough to make Apple Pay a highly sought-after solution for managing payments.

Samsung Pay

Samsung Pay has also been around for a while, as the system started in 2015. It is slightly different from Apple Pay in that while it stores payment data in a cloud, the tokens it produces will go from the cloud to the device when the purchase is made. An online connection will be necessary in this case.

What makes Samsung Pay useful is that it is easier to use it in more locations. Samsung Pay uses a Magnetic Secure Transmission or MST system to transfer data. It can work in more POS readers, including non-NFC magstripe readers. MST technology is easier to find on devices than NFC technology.

An MST system uses a few steps to work:

The device will produce a magnetic signal like what you’d produce on a traditional magstripe card when you swipe it.
The card reader will identify the signal. It will find the card number and other pieces of security data.
The POS terminal will read the card data and process the transaction from there. You’ll get a note on your phone through a cloud network after the transaction is complete.

Samsung Pay doesn’t have as much of a reach as Apple Pay, although it is still a prominent choice of note. The Samsung S6 and S6 Edge phones will make the system more popular.

The Starbucks App

The idea of a single company’s app being highly popular among mobile wallets sounds surprising. But there aren’t many companies that are as widespread as Starbucks.

The Starbucks app lets people load money from a separate credit or debit card to the app. The customer can then use the app at any Starbucks location to pay for the coffee or whatever else someone orders at the location.

The app features a useful setup and is ideal for people who frequently visit Starbucks. But there are many other reasons why the Starbucks app is so popular. These points may help show other retailers why starting their apps might be a good idea:

The Starbucks app provides rewards to regular customers. People can earn points they can use for various free purchases, giving them an incentive to return for future purchases.
There’s more loyalty attached to the Starbucks app. Since it isn’t preloaded on the phone like the other wallets for specific devices, people can choose to download the app if they tend to do business at Starbucks more often.
The app gives Starbucks regular customer insights and data. The company can use this data to provide rewards and other features to its customers. Starbucks also keeps the data to itself, ensuring its security.
The app also supports various debit and credit cards. This feature may be thanks to Starbucks’ immense reach and power, but it does help the company take in more money and handle payments well.
Since the transactions come through physical devices, it is easier for Starbucks to manage these deals without risking chargebacks and other common concerns.

All three of these mobile wallets are very popular for different reasons, but they all have one thing in common. They make it easier for people to complete their transactions. It is no surprise that they are all prominent in today’s online world and continue to be useful to many people.

Merchants Called To the Offensive In Battle Against Cyber Fraud

Cyber Fraud has been a concern that merchants have been dealing with for a while. But the increasing use of online payments during the global pandemic has forced merchants to take it a little more seriously. The risk of fraud has never been greater than it is now.

People are engaging in fraudulent activities while online more than ever. Friendly fraud is a concern, as people are requesting chargebacks on many transactions after they collect their items. While customers are running off with various things, online retailers are losing money from chargebacks.

Traditional forms of cyber fraud are still prominent. These include the use of malware, remote access Trojans, and other things that can target a merchant’s system. It becomes easy for thieves to steal data and compromise a website with these tools. A business will lose money on chargebacks if this happens. These chargebacks can be worth significant amounts of money, as data thieves often make expensive purchases through the identities they steal.

Online merchants are more susceptible to fraud than ever, but it doesn’t have to be this way. These retailers are working harder than ever to control cyber fraud. They are using many efforts to reduce the risk of fraud and to keep their investments under control. All of these moves are about going on the offensive and working harder towards identifying fraud.

Confirming the Customer’s Identity

Many cases of cyber fraud can occur when a person tries passing oneself off as another person. Online identity theft is a concern, as anyone could log into an account and claim to be that person. The customer will quickly engage in fraud after stealing that identity.

Merchants are fighting this form of fraud by using further measures to confirm each customer’s identity. The business can confirm details like one’s billing and mailing address, credit card data, and other factors.

The customer’s IP address will also be a factor. The IP address of the connection one uses when purchasing something would have to link up to the billing or mailing address one uses, for example.

Customers can also monitor other things surrounding a person’s identity, like one’s phone number or email address. A phone number might be listed in an area outside one’s area or have a billing address outside where one lives. The email address might also look fake or be registered in a different spot.

Other sudden changes like a higher frequency of orders or a significant increase in one’s order amount versus prior purchases could also be points of review. Merchants can check these things to flag possible fraudulent activities that might result in chargebacks.

Managing Internal Data

Internal data can also help identify cases of fraud. The business can monitor all the activities the customer enters. The team can monitor when that person logs into an account, what products someone purchases, unique promo codes one uses, and other activities. A merchant can compare internal data with everything else a customer is doing to confirm a transaction or to directly question whatever someone is doing while online.

The work is about finding unique changes in one’s behaviors. Anything that is out of the ordinary will be flagged. The goal is to prevent the customer from completing the transaction before anything can go forward.

Finding Fraud Through Behavioral Analysis

Artificial intelligence will play a critical role in preventing cyber fraud in the future. Behavioral biometrics technology is one part of the work. This system is a solution where a customer’s behavior is monitored in real-time. The customer’s interactions with online apps and devices are measured to identify how they act and if they show signs of possible fraud. The AI system will review these details and determine if the user is real or if that person is trying to commit fraud.

The behavioral biometrics system can also identify when a user is a remote access Trojan, a malware program, or a non-human entity. The effort can catch parties that might commit fraud. The work does not entail going through specific private details, but rather about confirming the person is accessing a site from a place where one might appear.

Positive Profiling Also Works

Another solution for preventing cyber fraud entails positive profiling. The practice involves using Big Data to review a person’s behavior through various retailers and websites. The customer’s behavior is compared with actions from other confirmed fraud suspects. The customer is screened instead of the transaction, providing a more accurate response to the issue.

Positive profiling is not about trying to uncover private data on a customer. It is about monitoring the customer’s shopping activities. It confirms that the customer is acting like any other shopper and that nothing is out of the ordinary.

A Chronological Analysis

The last point merchants are using to stop cyber fraud entails using a chronological review of everything happening in a chargeback. This part of stopping cyber fraud entails what happens after the transaction, but it can potentially prevent friendly fraud cases.

A time-based review can analyze the customer’s identity, prior purchase or shopping behaviors, and other details surrounding a transaction. The retailer can review how the deal is different or similar to others. The work is about showing that a person might have made a proper transaction and is trying to cheat one’s way out of paying for it. But it could also confirm that a legitimate chargeback is necessary. Whatever the case, it can still reduce the general risk of excess chargebacks in the process.

Will Everything Work?

People are going to keep on attempting cyber fraud no matter what happens. Some people will want a free ride on things, while others might be desperate and willing to do what it takes to avoid spending money on items. Whatever the case, online retailers are more proactive in reviewing possible cyber fraud cases. Their work is about preventing fraud and protecting their investments. With fraud being on the rise, these businesses will need to be more adamant when fighting fraud.

Frequently Asked Questions

Exploring the Varying QR Code Adoption Rates Around the World

The Quick Response or QR code has become a necessity for various scanning purposes. The QR code is convenient for touchless payments and other transactions.

QR codes are becoming increasingly essential for secure payments. People are starting to see what makes QR codes so valuable and are picking up on their use. But the adoption rates for QR codes vary by country, with some places being more supportive of them than others. The global pandemic may still force people to use them more often.

Early Adoption In Europe

QR codes are more common in Europe. Part of this comes from Europe’s early adoption of these codes. Abode Systems found in a 2014 report that slightly less than 30 percent of people in Germany and France had used a QR code. The total went down to around 25 percent in the United States and the United Kingdom.

People in these parts of the world were more familiar with QR codes at the start. It would be easier for these codes to work in Europe and other places where people often use them.

Prominent In China

China is one country that has been accepting QR codes more than others. CNN Tech reported that at least a trillion dollars’ worth of transactions were handled through QR codes in China in 2016.

Much of China’s use of QR codes come from WeChat, a popular online social media platform available in the county. The app lets people communicate with each other and make mobile payments. The system uses QR codes to transfer funds, authenticate people, and get information on various things.

It appears that these codes would be more prominent in China and other countries around Asia. The system was established in Japan in 1994 as a system to track vehicles in construction. While it was intended to track the construction of new passenger vehicles, it has since found many other applications. It has become a replacement for traditional barcodes in many situations, including in retail and communication sectors.

Major Surge In India

India is another country that has adopted QR codes well. The Indian government started an effort in 2016 to cut down on fraud and corruption surrounding physical currency. Businesses around India have begun using mobile payment platforms that use QR codes to collect and exchange funds. They can do this without requiring paper currency.

The online payment platform Paytm supports millions of these businesses. Such transactions do not require physical currency, thus preventing fraud. It has been part of India’s ongoing effort to create a fair economy and to reduce risks.

American Acceptance

Americans started using QR codes more often as the 2010s progressed. Statista reports that about less than ten million American households had scanned a QR code in 2018. The number rose to about eleven million households in 2020.

QR codes are becoming more prominent in the United States. They are in use through various businesses and private individuals for many purposes:

Recording loyalty programs at different retail sites
Tracing products and shipments to ensure they reach their desired locations
Creating links people can scan to learn more about physical items; these can appear on billboards and other public messages
Accepting donations for various events or charitable activities
To help people communicate with others through social media platforms; this includes linking QR messages to social media accounts

How the Pandemic Changes Things

The most significant factor influencing the rise of QR codes has been the ongoing pandemic. QR codes are becoming more common for touchless payments. QR codes can send payment data to different parties without requiring any contact, thus providing a safer approach to trading funds. People can also use QR codes to scan and read documents online instead of using physical ones.

Statista found in late 2020 that nearly half of all Americans and those in the United Kingdom had used QR codes more often. Code adoption has also been on the rise in Canada, Australia, France, Thailand, Hong Kong, and other major markets.

Some governments are even requiring businesses to use QR codes. The Australian state of New South Wales requires stores to use QR codes for transactions to support contact tracing. The effort ensures people can be tracked and monitored if there is an outbreak in certain places. People who visited areas where outbreaks occur can be informed of the situation.

Further Work Is Necessary

Additional efforts will be necessary to make QR codes more viable. Governments could potentially start using QR codes to facilitate various monetary transactions. An example of this appears in Singapore, where the government is establishing national payment standards that utilize QR codes. The effort would make it easier for people in the city-state to receive payments from the government.

Pandemic-related changes that have caused businesses to become more reliant on QR codes could also make an impact. These codes are critical as people start looking for contact-free payment and document solutions.

Could the Positives of QR Codes Make an Impact?

It might be easier for people to start using QR codes if they understand the positives that come with them. Businesses and the general public may start using QR codes more often if they notice some of the benefits of the work:

A QR code can store more data than a traditional bar code. It features a two-dimensional approach to storing data. The layout includes content in its horizontal and vertical spaces.
QR codes are encrypted and hard to hack, making them useful and safe for financial transactions.
It is easier for people to read QR codes than barcodes. A QR code can even be read if it is damaged or partially obscured.
These codes can also be produced in massive sizes, including ones that could cover an entire billboard.

QR codes are already becoming more prominent worldwide due to the pandemic. But the benefits of QR codes and the familiarity that people have with these codes will make them prominent very soon.

Friendly Fraud Becomes Sworn Enemy For Restaurants

Restaurants have already been hit hard during the pandemic, as they are subject to various restrictions. Many places cannot open for anything other than delivery. Reduced dining room capacity keeps these businesses from bringing in as much income as usual. There’s also the worry about further restrictions coming later.

One other concern that is harming restaurants entails friendly fraud. This issue has become more prominent during the pandemic. People are buying more products and services online than ever. It has become easier than ever for people to get refunds on purchases they already consumed or utilized. People can get chargebacks instead of restaurant-issued refunds on their purchases.

The problem is simple, but it can be resolved or reduced if a restaurant uses the right measures. These include efforts for reviewing disputes and for accepting alternate forms of payment.

What Is Friendly Fraud?

Friendly fraud is where a customer will get a chargeback on a transaction the customer completes while online. The effort entails a few steps:

A customer will complete a purchase with a credit card while online.
The person receives the products or services.
The customer will then request a chargeback from the issuing bank. The person must file an explanation surrounding the removal.
The bank will review the request.
The bank then decides to accept or decline the chargeback.
If accepted, the bank will cancel the transaction.
The consumer receives a refund of whatever one spent on that purchase.

The effort makes it easier for people to get things they want for free. Restaurants are hurt by this as people purchase foods for delivery or takeout online. Those people can then ask for chargebacks after they acquire whatever foods they ordered. The move provides free meals at the restaurant’s expense.

Who Is Liable?

A restaurant or other business will be held liable when a chargeback occurs. The merchant is accountable despite any efforts to verify the deal. Sometimes the customer requesting the chargeback might say the transaction was unauthorized. The move makes it easier for that person to get the full refund.

This concern has become prominent during the pandemic. Fewer people are dining at restaurants and are ordering home delivery. They do this for safety reasons, but some are starting to abuse the system.

It is easier for friendly fraud to occur when someone completes an online to-go order. The card doesn’t have to be present for an online transaction.

Other Payment Platforms Hurt

Another concern restaurants are dealing with entails how other payment platforms work. Many digital platforms people use for ordering foods from restaurants will move transaction data through an outside party. There exists another layer between the customer and restaurant due to these external programs.

It could become easier for people to request chargebacks if they purchase foods through these other platforms. The customer could claim that the food one ordered was ruined while in transit, or the delivery never came. But these points might not be valid, and it might be tough for a third party to dispute this point.

Why Do Card Issuers Usually Side With the Customers?

While the customers often lie about their chargebacks, it is easy for them to take advantage of this point. There are many reasons why card issuers will stick with the customers in these disputes surrounding friendly fraud:

Card issuers have zero-liability policies, meaning the customer isn’t liable for any unauthorized purchases.
Online transactions are card-not-present deals, meaning anyone could use a card so long as one has it in one’s possession.
Consumer protection regulations focus on protecting customers from abusing card companies or businesses. They may be more willing to support the customers to keep their positive images intact.

Why Are People Engaging In Friendly Fraud?

The main reason people participate in friendly fraud towards restaurants entails their own financial struggles. Many people have lost their ability to bring in income during the past year. People might be willing to do anything they can to reduce their expenses.

The faulty mechanisms surrounding fraud protection for online food purchases are another factor. Since these transactions are card-not-present deals, it becomes easier for people to produce claims. They could say someone else had the card in hand, for example.

How Can Restaurants Fix This?

Friendly fraud is a legitimate concern that will likely become worse. More people will start to learn about it and take advantage of this point. But restaurants can fix this problem before it can become more widespread. They can use a few points for help:

Digital wallets can add protection.

Digital wallets like Google Pay or Apple Pay allow people to complete transactions through a P2P network. The system doesn’t require any outside banks or delivery parties. It is also easier for people to confirm their identities through these digital wallet programs.

Cash-on-delivery may also work.

Cash-on-delivery transactions may become necessary for some restaurant purchases. COD deals allow people to pay for their foods when they are delivered or when they pick them up. The customer can use a credit card, although cash could also work if the customer prefers this option.

Artificial intelligence support is necessary.

Restaurants can use artificial intelligence or AI technology to review and resolve disputes. AI can review customer disputes and identify the best resolution methods. The work reduces the risk of chargebacks and ensures businesses can issue refunds when they are legitimate.

Regular interaction is critical.

A restaurant can also communicate with the customer whenever there’s a problem. The restaurant can talk with the customer about the issue at hand. The two parties can find a reasonable way to resolve the issue before a chargeback is necessary. Having a more transparent system may also discourage people from committing friendly fraud.

Friendly fraud will be a significant concern for restaurants to watch for now and into the future. But the taking the right efforts for preventing the issue will help.

ACH Network Hits 2.7 Billion Monthly Payments In Record-Setting Quarter [2023 Update]

The Automated Clearing House or ACH network saw a dramatic rise in its quarterly volume. Nacha, the group that runs the ACH network, reports that the network saw 7.1 billion payments during the first quarter of 2021. The total equals about 2.7 billion payments per month. The quarterly report is an 11.2 percent increase over the same quarter from 2020.

Nacha also reports the payments received by the ACH network during the first quarter of 2021 totaled about $17.3 trillion in value. The total is close to 19 percent higher than what it had in the first quarter of 2020.

Nacha cites this statistic as proof that the ACH network is strong and can handle various stresses. People are using the ACH network more often than ever. Even after accepting one of the most massive government stimulus programs in the country’s history, the system is still capable of handling all these transactions.

What Contributed To This Increase?

Nacha states that the United States’ direct deposit stimulus payments to qualifying taxpayers helped boost the ACH network’s volume. The government sent more than 125 million stimulus payments to Americans as of the end of March. These payments total about $325 billion in value. Most of these checks went direct to peoples’ bank accounts through a direct deposit service.

There were concerns that the direct deposit payments would be hard for the network to facilitate. Most people who had been expecting these stimulus payments got what they were looking for without waiting long.

Not every person got their payments at the times they expected. It took a while for the transactions to move, but most people have reported that they have gotten their funds as of April 2021. Some people got their payments in about a week after they were announced. The extended effort by the government to move hundreds of billions of dollars out was extensive, but it was successful enough to facilitate the needs many people held.

B2B Work

Businesses are also moving away from traditional check-based payments for B2B transactions. They are focusing more on ACH payments, as they are more convenient than giving other businesses checks. Businesses can move payments to other businesses’ checking or banking accounts through ACH transactions. Nacha reports that B2B ACH payments increased by nearly 17 percent from the first quarter of 2020. About 1.2 billion B2B payments took place in the first quarter of 2021.

Healthcare Transactions

People are relying on ACH payments for healthcare transactions. Nacha reports that people spent 9 percent more on healthcare payments through the ACH network this past quarter than the year before. People are especially using these payments to facilitate exams, treatments, and other services that people often require for their health needs.

Online Purchases

Businesses are also accepting ACH payments for purchases more than ever. Nacha states that spending on online purchases went up about 14 percent in the first quarter. People are spending more than $2 billion on online transactions.

The Rise of Same-Day ACH Payments

Same-day ACH payments have also become popular to where businesses are transferring more than $1 trillion between businesses in a quarter. Same-day payments have become increasingly critical as companies look to get their funds ready sooner.

Nacha is also planning to increase the per-payment limit on same-day ACH payments to $1 million in early 2022. The effort will meet the expanding needs businesses have for handling ACH payments. The same-day service has only been around for the past couple of years, so the team will still be refining the work as it moves forward.

Nacha’s Work

Nacha is short for the National Automated Clearing House Association. The group has been working its hardest to manage the ACH network and to ensure it keeps running well. Nacha’s ACH network helps manage direct deposits and payments between businesses and other parties. It can handle payments to people and even other businesses. The system supports all American bank and credit union accounts.

Nacha is fully functional and will continue to maintain its operations well without risking losses. The group gets its funds from the banks and credit unions it governs. The fees it collects for transactions also helps keep it running.

How Does the ACH Work?

The way how the ACH works is part of what makes the system so effective. The ACH system allows a person to provide one’s bank or credit union name, account type, routing number, and account network to the network. A business or other party can then send a signal to transfer funds from one’s account to that other person’s account. The all-electronic process ensures money can go between parties in moments.

The ACH setup ensures people can keep track of their transactions in moments. It is easy for senders to keep tabs on their expenses. Senders can also save the data they collect and send regular payments to people as necessary, including every week or month if necessary.

The ACH process is also cheaper to manage than if one were to wire funds to someone. The ACH network has also improved its infrastructure to ensure payments can go forward faster. Same-day payments have been working since 2016, and they are becoming increasingly common and less expensive as the technology becomes more refined.

Nacha continues to review its standards for handling direct payments. It reviews ongoing trends surrounding how people use clearing house payments and adjusts the rules and infrastructure for what users need the most. The work is about ensuring people can get the support they deserve.

It likely won’t be long before these new records break once more. People are using ACH payments more than ever, as they are convenient and easy to plan. The network’s system for managing funds will especially do well in ensuring more payments can run well. It will be exciting for people to see what the ACH network goes next and how Nacha will continue to keep the system operational.

6 Post-Pandemic Kiosk Business Ideas

Self-service kiosks have become increasingly prominent, as the industry will continue to grow by billions of dollars in the next few years. People have started using kiosks for many purposes in the past few years.

The global pandemic has especially made self-service kiosks more essential. These systems are considered safe and sensible, as they allow people to order and pay for items without having to contact others.

The most impressive part of the kiosk industry is that kiosks are becoming more varied and diverse. They can work for many unique transactions. You could take advantage of the self-service kiosk market by investing in one of many potential business opportunities. Here are six useful kiosk business ideas you could benefit from right now or after the pandemic ends.

Food Pickup

One kiosk choice to explore entails food pickup kiosks. A customer can order foods online, and the person can then travel to a restaurant and use a kiosk to unlock a locker featuring whatever someone orders. The process keeps foods heated and fresh, plus it reduces the contact between customers and employees. People are choosing carry-out dining services more often than ever, so this could be an exciting kiosk option for investing.

This kiosk setup is similar to the automat. This system is a food service setup that was prominent in the mid-twentieth century. An automat is a place where prepared foods are in separate compartments. A customer can pay money to open one of these ports to take the food inside the space.

Expect this serving format to become more popular in the near future, especially as people look for food solutions that don’t entail as much human interaction as one might expect. The technology for automats already exists, so it is possible. A kiosk can link to the automat to allow the customer to peruse through foods and select the unique locker for ordering. The selected locker will open after the customer’s payment goes through.

Cleaning Devices

People are looking for ways to ensure their items stay clean. From their phones to their eyeglasses, everyone wants to see their things are safe and germ-free.

That’s why investing in kiosks that support cleaning devices is a practical choice. Cleaning device kiosks link to systems that can clean various items. They can use ultrasonic light to kill off bacteria and gentle water jets to clean off their surfaces. The user places one’s object in a secure space, and the machine will do the rest.

One example you might find surrounding these kiosks entails eyeglass-cleaning stations. These kiosks have become increasingly common in airports. A user can utilize the machine to pay for a cleaning service. The user will then place the eyeglasses in the proper compartment and then let the unit spend a few minutes cleaning the glasses. It then triggers a drying that will clear off excess moisture, ensuring the glasses are clean and ready to wear again right away.

Medical Tests

Another post-pandemic idea for a kiosk entails a medical testing kiosk. A customer can order a medical testing item from a stall by entering one’s payment information and selecting the specific test one wants to buy. The user can purchase an allergy test, hormone test, blood level test, or anything else of value.

A medical testing kiosk can be critical to anyone’s health. It can be more viable and convenient than visiting a pharmacy or going to a drive-through testing site. These kiosks can especially be helpful for people in urban areas where it might be tough for them to find tests in most places.

Drink Services

Coffee shops can benefit from offering self-service kiosks. A coffee shop can introduce a machine where the customer can order a specific coffee and add other things to it as desired. The customer will pay for the coffee before it starts. The kiosk will then brew the coffee and deliver it to the customer through a dispenser with an included cup and lid.

This kiosk idea could be appealing if you can maintain it well. You’ll need to clean the mechanisms inside the kiosk on occasion. You’ll also have to refill its components to ensure you can keep on serving your customers. The kiosk would also require a consistent water connection to produce enough coffee or other drinks people order.

You could utilize one of these kiosks for any drink one wishes to order. You could create a self-serve beer or wine kiosk at a bar, for example.

Health Monitoring

As people start to return to outside places more often, there might be some reluctance among people to enter some spots. Health monitoring kiosks could help review if the people entering a building are healthy and safe. A kiosk could monitor heat signatures and identify if a person’s body temperature is too high. A machine could also identify if someone is wearing a face mask. It could create an alert for when someone isn’t wearing a mask, producing a warning.

Hotel Management

The last post-pandemic kiosk idea to follow entails hotel management kiosks. You could invest in kiosks that work in hotel lobbies and facilitate check-ins and check-outs. Hotels are expected to become busier as people start traveling again. Investing in kiosks in these places could be a good idea to explore.

A kiosk could allow a patron to check into one’s room. The user can pay for the hotel reservation and get one’s room key through the kiosk. The menu could also provide upsells and other offers that the customer could explore. These upsells could give the business more money if enough people install them.

All of these post-pandemic kiosk ideas show that the kiosk industry is viable and includes many ways for you to make money. Take note of all these options, and see if you can find a choice that works for what interests you the most.

Shifts In Ecommerce and Brick-and-Mortar Retail

Retail industries have been changing over the past few years in ways no one could have expected. There are many exciting shifts to notice surrounding the industry. Many of these points involve shifts in how customers behave. These include changes for physical and online retail spots and how they will complete their work.

Direct-To-Customer Solutions

Many businesses are focusing on direct-to-customer services. Instead of working with third-party retailers to sell their products, they are directly interacting with customers.

While most direct-to-customer transactions in the past have been through outlet malls, many brands are directly selling their wares online. They are doing this to get away from third-party retail outlets and to establish direct links with their customers. Outlet mall staples like Nike, Levi’s, Tommy Hilfiger, Vineyard Vines, and Hanes have been investing more in online sales.

Direct-to-customer sales are especially popular for how a company can control its brand and establish customer loyalty. These businesses can also access more customer data, giving them the power to adjust their sales offers and promotions.

Customers are often more willing to purchase products from certain brands than others. These businesses are working towards promoting their brands to their customers. They will have more control over the work effort.

At-Home Services Are Prominent

People are becoming more interested in at-home services. These include ones where people can access things without having to leave their homes.

A good example comes from how online streaming providers like Netflix are making it easier for people to watch films and programs from home. People can subscribe to services or pay to rent a film if they wish. Customers often appreciate the convenience of these services, especially since they don’t have to spend lots of time having to travel somewhere to enjoy something.

Grocery stores have also been more reliant on delivery services. People can go to a grocery store’s website and then select the products they wish to purchase. These stores can then deliver those foods to the customers’ homes. This at-home service has become very noteworthy, as it shows how people are willing to take in anything in their homes if it is convenient.

Convenience and On-the-Go Transactions

One notable shift surrounding retail industries involves how many businesses are focusing on convenience. These include businesses that want to get people their products or services as soon as possible.

An example of this comes from the McDonald’s restaurant chain. The restaurant chain has been relying more on drive-through sales and less on dine-in transactions. The chain recognizes that people are becoming increasingly interested in such fast transactions. The work has even moved to where McDonald’s is closing many of its locations inside Walmart department stores.

The use of mobile payment wallets and contactless payment systems is another sign of how on-the-go transactions can work. NFC-based payments are faster and easier to support, making it easier for people to purchase what they want and to head out.

In-Store Enhancements

Many brick-and-mortar retailers are trying to keep their sites running. While more people are looking at online stores, traditional retailers are adding new features to help enhance their experiences. These include many things for the customer’s convenience:

People can purchase products from a store online and then drive over to the store to pick them up. Customers can do this without having to enter a store. A retailer must use inventory software and communication programs to ensure everything stays online.
Stores are accepting Apple Pay, Google Pay, and other contactless transaction platforms. These systems make paying for items easier to manage.
Retailers are also opening locations away from traditional malls. They are doing this to make their businesses more accessible and to provide a more personalized experience.
Augmented reality systems are also available through some retailers. These include systems where people can look in a mirror and see how certain fashions or cosmetics products might look on someone. The system is more convenient than if people tried on clothing or other products themselves.

These solutions are necessary for ensuring traditional stores can stay intact and catch up with the times. People are becoming more interested in various services, so adapting to their needs will be critical to the business’ success.

How the Pandemic Plays a Part

All these shifts in ecommerce and brick-and-mortar transactions show how the retail industry is changing. Businesses are taking more initiative, but behavioral changes are worth noting. The most significant point comes from how the global pandemic has changed customer behaviors.

People have developed new behavioral patterns over the past year. They are more comfortable with purchasing products online. They may want to acquire things as soon as possible as well.

The ecommerce world expanded in 2020, and there remains uncertainty over how the brick-and-mortar retail industry will survive through the pandemic. But businesses of all sorts are finding innovations and concepts to attract customers. They are focusing on how customers want more control over their experiences. They are also reviewing the unique ways customers want to interact with businesses.

But there also exists a concern surrounding foot traffic in businesses. It might be hard for some physical retail sites to manage their rent costs if they cannot get enough foot traffic. Businesses are researching details on how often people show up in their stores and what additional points might influence when people arrive. They can use these insights to figure out what promotions they should offer. But even then, changes in society surrounding the pandemic might make it harder for some businesses to bring in customers the same way they always have.

Whether it entails at-home convenience or directly getting in touch with a brand, customer behaviors are changing. It is up to businesses to look at how their online and physical retail spaces will react to those changes and shifts. It will be worthwhile for businesses to watch what happens next and how customers will continue to change their behaviors.

Is Not Accepting Credit Cards Hurting Your Bottom Line?

You might be worried about accepting credit cards at your business. You could have concerns surrounding how much it costs to purchase the equipment necessary for reading these cards. The fees for each transaction may also be a problem. You might not be comfortable with spending a percentage of each card transaction on handling the work.

Maybe your business is a cash-only entity by design. There are many cash-only businesses and operators, like food trucks, laundromats, and nail salons. People who provide at-home services like dog-walking or babysitting may also operate on a cash-only basis.

But you might be leaving out a significant number of customers if you don’t accept credit cards. Accepting these cards can be a worthwhile investment, as they can increase your potential to make more money and bring in more customers.

Why Aren’t You Accepting These Cards?

You could have plenty of legitimate reasons why you aren’t accepting credit card payments:

Your business platform might be one that doesn’t manage credit cards.
You might live in an area where online connections are poor. It is often tough for people in rural areas to get reliable online signals.
Maybe you want to simplify your accounting efforts. It is easier to review your account details through cash accounting. You’re only reviewing the cash that comes in and out of your business here.
You might want to wait to collect the funds you require. Credit card payments have to be held in a merchant account before you can get it ready for use elsewhere.
There’s also the chance you might be hesitant in accepting cards. Your business might have been around long enough to where you aren’t all that concerned about accepting credit card payments. You might figure there’s no more of a need for you to accept these cards.

These are understandable reasons, but the problem is that people want choices when paying for things. They appreciate how credit cards can help them pay for things in moments. Not accepting these cards can be a risk if you aren’t cautious enough over what you manage.

The General Risks of Not Accepting Cards

The issues that come with not accepting cards are plentiful:

You may develop a negative reputation among others if you don’t accept credit cards. People might not see you as being overly reliant.
There could be suspicion among some people surrounding your business efforts if you run a cash-only business. Many companies might fabricate their earnings for tax purposes if they don’t accept cards.
People are becoming more in tune with digital payment solutions. These include Apple Pay, Google Pay, and other systems that link with credit cards. Failing to accept these choices could cause you to lose customers.
People who earn more money are more likely to use cashless transactions. You could earn more money if you accept cards, as you’re targeting people who are more likely to afford whatever you’re selling.
It will be harder to issue refunds to your customers if you run a cash-only business. It is easier to provide refunds through credit card deals, as you can trace a customer’s transaction and refund it from there.
Customers expect businesses to be up-to-date when handling various technologies. A company that doesn’t accept credit cards might be interpreted as being behind the times and unable to process deals.

Is It Possible To Spend Less When Accepting Credit Cards?

Accepting credit cards is one of the best things you can do when running a business. By accepting these cards, you let people know that you have a full infrastructure where you can support whatever transactions people wish to manage. But you can also establish a few policies surrounding what you support when getting these cards ready for use in any case.

You can utilize a few points to help you accept credit cards while spending less than you might expect:

You can select the specific cards you wish to accept. You could decline to accept American Express cards if you cannot afford the higher-than-average interchange fees Amex charges. Most customers use Visa and MasterCard credit and debit cards, so sticking with those two choices will be necessary.
You can establish a $10 minimum on card purchases. The minimum encourages people to use cash when they aren’t buying too many things. It also reduces the risk of people trying to use counterfeit bills when handling high-value cash payments.
There are many small POS systems you can utilize if you aren’t willing to commit to a full-size platform. Companies like Square and Clover have various POS solutions that fit everyone’s needs.
You can also incorporate online-only credit card processing systems in your work. PayPal is one of the top online-only options you can incorporate in your work, especially if you do much of your business online.
Be sure to check the terms surrounding each credit card processing provider on the market. All parties have unique rules for operation and different rates and fee schedules. You can compare options to find a solution that fits your budget.
There’s an option to add a fee to your purchases to offset any interchange fees you will spend on a deal. Be sure the move is closely integrated with your orders and that you don’t charge more than necessary to cover the total.
You could also produce a policy where you only offer store credit if you have to give a refund to a customer. The policy can reduce the risk of chargebacks. You can use this if you have a high percentage of return at your business.

Remember that credit card payments are critical to your business’ success. Failing to accept these payments will keep you from earning more money. You could also hurt your reputation if you don’t accept these payments. But by doing your research and coming up with a plan, you’ll have an easier time accepting credit card payments without spending more than you can afford.

What’s So Special About Embedded B2B Finance?

Embedded finance is a distinct concept that businesses can utilize when managing transactions with one another. It gives businesses extra support when managing their money and when handling transfers between each other. But what is embedded finance, and what makes it so beneficial?

Let’s look at how well B2B finance can work for your general needs when managing money. The system is easy for businesses to follow. It may also be more convenient than if you were to hire a bank for help with your funds.

The General Concept

Embedded B2B finance entails banking services available through non-banking parties. Non-financial companies can use various solutions to help manage finances, including B2B transactions.

Businesses can do various things in B2B finance. They can send money to other businesses, or they can get loans ready. They can divide payments for certain investments or partnerships with one another. These parties can arrange for how they will handle their funds online through the embedded finance programs they use.

Embedded finance is part of fintech, a process involving the integration of physical and virtual technologies in the financial services people utilize. The work provides a simple process where businesses can get direct financial support from other companies without relying on a third party like a bank.

You can access embedded financial services through various platforms. You could use a website that can handle funds. You could also use an app that incorporates a virtual wallet to pay for items. Anything that can manage money can work here.

What Programs Work?

People can use many non-banking programs to facilitate financial services. Here are a few examples of what can work in this field:

Embedded payments can work through various apps. Companies like Uber, Lyft, and other ride-sharing companies offer online wallet programs where people can secure the funds they will use to pay for their transactions.
Embedded card payments can also work through PayPal and other online money transfer programs. People can link their cards to PayPal and use that platform to forward money between people at any time.
Embedded lending can involve people splitting purchases or agreements with businesses into small payments. Systems like AfterPay and Klarna can facilitate these payments.
Some companies may also support embedded banking services. These include solutions where business owners can link a bank account to a secondary app that will allow the company to forward funds to other parties. Shopify has a solution that helps businesses create bank accounts they can use for handling funds through the platform, for example. The system keeps people from having to use personal savings or checking accounts to handle their funds.

The assortment of embedded B2B finances available will expand over time. Businesses will find these solutions more effective and convenient than if they were to use other items for their work needs.

A Convenient Approach

You might have noticed when working with a bank that you’d have to spend extra on some financial transactions. You might want to send money to another business, but it could cost extra to make it work. You might not also get the rates you want out of the service. But embedded finance reduces all those worries and gives you a system you can trust.

Embedded finance is useful for how it doesn’t entail some of the annoying expenses that come with traditional bank-based financial services. The problem with using a bank is that the bank might charge various fees and take a while to transfer funds. Banks aren’t always going to be readily available to handle the transactions either. Some banks can also charge elaborate interest rates on loans and other investments.

Working with non-banking entities may be a sensible solution. By going outside of banks, businesses can facilitate financial services and transactions with one another. They can plan their own rates and charges, plus they can communicate with each other at any point. The process is more convenient, plus it may be more affordable than if you used a traditional bank.

Full Customization

Embedded finance also offers complete customization for producing unique applications for financial purposes. Embedded finance is about helping figure out what things people can benefit from the most.

You can send information to the other business about what you need out of your finances. The other end can plan a system for managing an agreement you and them can support.

Negotiations Are Possible

It is often easier for businesses to negotiate plans with one another through embedded finance. Companies can talk with one another about the financial needs they have. They can exchange plans for finances and come up with useful solutions. You can use this opportunity to figure out what’s right and what you wish to utilize.

Can Crypto Coins Work?

Most banks and financial institutions aren’t willing to touch cryptocurrencies. These are often too risky for some banks, as they are mostly speculative. But with businesses starting to consider crypto payments, embedded finance practices can entail these crypto investments. People can trade crypto coins with one another if they prefer. They could use online wallet programs that do not operate as banks, but rather as platforms where people can transfer currencies.

General Ownership

The best thing you’ll get out of embedded B2B finance involves general ownership of the payment and transaction process. You’ll have more control over the experience, which helps if you’re trying to watch your funds and keep them under control.

The potential for embedded finance to become more valuable will be worth watching. Embedded finance can help businesses complete financial duties with each other. It can be more convenient and flexible than what a bank might provide, making it a suitable choice for many activities. Check on how well your business can benefit from embedded finance and how you can make it run well for your needs. You may find the process to be more advantageous to your business than you might expect.