How Can We Ditch Our Wallets for Our Electronic Payment Future in the Age of Hacking?

Last week, I was sitting on the Starbucks patio, sipping on a Frappachino, I watched a car pull up into the drive-through, and the gentleman took their smart phone and waved it over a smart phone reader which deducted the cost of his coffee from his Starbucks card which was inside of his smart phone as an app.

That was a pretty cool trick, it just goes to show you that in the future your smart phone will be an all-in-one device, and will also serve as your credit card, and your customer loyalty card at the grocery store, and all the other businesses that you shop that. There’s only one problem with all of this, and that is the computer security of your smart phone, and the fact that the hackers can break-in.

There are so many components to all this, you have your 4G wireless company, the maker of the smart phone, and all the software programmers to create the apps. Therefore there are too many chances for gaps in security, and unless these transactions are 100% secure, someone can break-in to your phone, and therefore they’ll have access to your bank account as well.

On July 7, 2011 Google officially announced the end of the of the wallet, which shouldn’t be too surprising considering all the partnerships being announced between smart phone manufacturers, cell phone companies, and banks. On May 2011 there as an interesting piece in a Guardian article titled; “Google Wallet: A Big Deal or Another Buzz? Google is right – replacing credit cards with smarphones is a great idea, but will it work?” by Jean-Louis Gassee.

There was an interesting article by Adam Hoffman of (Electronic Receivables Department at CitiGroup) in Global Finance in June of 2011 which was extremely interesting as he was discussing the future of electronic payments. The article was titled “What’s Next in the World of e-Bills and e-Payments,” and he reminded the readers of the incredible future these technologies will have and what that means to changes in money flow.

This is quite incredible stuff, and these new technologies are totally leading-edge, but we’ve already seen the challenges and security holes in nearly all of the smart phones and their operating systems. How can consumers feel safe, and until they do how can the industry including the banking industry, credit card sector, and the makers of these devices convince the public that it’s okay and safe to use electronic payments in the age of hacking? Indeed I hope you will please consider all this and think on it.

Disadvantages of Electronic Payment Systems

Electronic money, also known as e-money, electronic cash, e-currency or digital cash, refers to money or scrip which is exchanged electronically. Basically, electronic payment systems are key enablers for mass acceptance of electronic commerce over insecure systems such as the Internet. In Business-to-Business (B-2-B) e-commerce, there is a rapidly growing interest in processing payments online.

However, these electronic payment systems have a number of a number of disadvantages also. You need to record to the establishment in order to be empowered to perform money transactions with them. Now, you need to have a username and password, and for that you need to have password aegis. Moreover, you also need to keep up an account per organization, which can be very irritating or pesky for you.

To make sure that your online transactions are solid, it is essential that you observe strict security policies. If password is capable of being hacked, it can mean serious fiscal loss for you. Banks or financial institutes that have your financial information can expose it to cyber-terrorist. So, there is unstated risk of your personal and account particulars being stolen.

The transfer of digital currency arouses questions such as how to impose taxes and the potential ease of money washing. There are also possible macroeconomic results such as exchange rate stabilities and shortage of money supplies.

Moreover, you are always at a loss if your card is stolen. If the card falls in wrong hands, there is a danger of expenditure of entire bank balance. You will obviously inform the concerned authorities about the loss but the time taken between losing the card and informing the authorities is critical.

The purpose of the above article is not to discourage people from making electronic payments but to make them aware of the inherent dangers that such payment systems involve.

Apple Pay – Explore The Paramount By Electronic Payment Gateways

Digitization of payments has revolutionized the trade and contributors like Apple Pay play a major role in it. In fact, it is overwhelming for a startup business to determine which one plays the trick midst a plethora of Credit Card Processing Services. However, electronic payment processing these days is simple on the outbreak of numerous choices and options for availability of merchant account services. In addition, the flexibility offered in making electronic payments using a mobile phone helps in broadening the scope of operations.

Credit Card Processing Services – What You Ought To know

Processing credit cards is imperative for a startup business. Typically, small or medium-sized startups, Enterprises, B2B or B2G service provider require this facility. Good payment processing company offers numerous customized solutions to meet business specific needs and wants. However, you need a merchant account to accept credit card payments online or at a POS terminal. Certain advantages are

• Substantial revenue boost
• Unified payment processing
• Security
• Flexibility of operations

However, integration of innovative payment processing technology like Apple Pay adds the cutting edge leverage to the business. The scope of various merchant services offered by the business can expand exponentially upon such successful integration.

How Things Work – Why You Need To Know?

The paradigm of credit card processing revolves around verticals like merchant, merchant’s acquiring bank, cardholder, cardholder’s issuing bank, and association of the card. Payment processing gateways like Apple Pay eliminate many verticals from this association due to innovation. On the other hand, a typical Credit Card Processor mechanism requires the engagement of all these verticals. Accepting credit cards is common these days. The steps involved in such credit/debit card authorization transaction are

• Cardholder pays the merchant
• Merchant’s acquirer bank sends the payment information to card network
• Card network sends the information to cardholder’s issuer bank
• Cardholder’s issuer bank sends approval
• Card network returns to merchant’s acquirer bank with payment approval

Merchant Account Processing through this gateway is lightening fast and payment processing requires merely a second or two.

Merchant Services And Their Indispensible Role – Is A Replacement Possible?

Financial service providers or banks that provide card payment acceptance and processing facility to a merchant are termed as merchant services. However, small business merchant services mandate acquiring a merchant account to begin accepting the payments. In addition, merchant services govern the merchant account rate. Therefore, the entire scope of entering into a minimum processing fee account solely depends upon finding the right Merchant Processing Account. Processors like Apple Pay or other third party payment processors eliminate the need for merchant services or processing account by operating on a parallel channel.

Understanding the imperatives of E-commerce is very essential to make the most of it. Many unparalleled service providers apart from the conventional credit card processing services help in expanding the horizon by offering competitive rates and better flexibility. Therefore, look for possible solutions available online for a rugged boost to your E-commerce before entering into an agreement. Service providers like Apple Pay do have unparalleled solutions that you need today to survive and thrive.