harshitkryptova

[harshitkryptova]

Significance of the foreign exchange market

For its accessibility, liquidity, and international nature, among other criteria, the foreign exchange market has emerged as the world’s largest financial market. To make a profit, you can purchase and sell currencies over the counter because, unlike other markets, there is no actual exchange for such trading.

The following are the top 10 advantages of FX trading: 1. Liquidity

The forex market is regarded as the most liquid market in the world due to the high volume of trading activity that occurs around the clock. Liquidity refers to an asset’s ability to be bought and sold with minimal impact on its value. Liquidity in the forex market allows you to trade with minimal risk.

2. Volatility

Geopolitics, economic stability, policies, natural disasters, and trade agreements are just a few of the factors that affect the market. A minor change in any of these causes a significant shift in the market. Volatility is the term for a market’s sensitivity. When the value of a currency changes for the better as a result of these drivers, it results in significant profits. If, on the other hand,

3. Nobody has complete control over the market.

The forex market has a huge number of participants, which means that prices are controlled by external variables such as the economy rather than by a single player. This component represents the importance of foreign exchange in traders’ portfolios as an investment opportunity. In this market, there are no middlemen, and brokers solely serve to link buyers and sellers.

4. Transactional fees are minimal.

A minimal initial investment is all that is required to begin online forex trading without incurring significant transaction charges. The broker’s fee, which he obtains via spreads, accounts for the majority of transaction costs. The spread, which is the gap between the ask and bid prices, is measured in pips or percentage points.

5. Technology

Because this market is still relatively new, one of the benefits of foreign exchange is that its participants have readily accepted technology. There is a plethora of software and mobile applications available that allow for real-time trade from anywhere in the world.

6. The market is vast and international.

The foreign currency market is genuinely global, with merchants from all around the world engaging. The importance of the foreign exchange market is demonstrated by the fact that on a daily basis, more than $4 trillion is exchanged in the currency market. Other characteristics that make it a profitable trading environment stem mostly from the market’s sheer size.

7. Beginners will enjoy it.

The forex market is simple to navigate for first-time traders wishing to make small bets. One of the numerous benefits of foreign currency trading is that brokers provide demo accounts. Rookie traders can use them to practise their skills in a market simulation before committing to any trades.

8. The market is open 24 hours a day.

Due to the global nature of the forex market, trading can occur nearly continuously as long as a market is open somewhere in the world. It is open five days a week, for a total of 24 hours every day. The first major market opens at 5 p.m. on Sunday in Sydney, Australia, and trading finishes when the New York market shuts at 5 p.m. on Friday in the United States.

9. Leverage

Retail traders can borrow against a small amount of capital from foreign exchange brokers, giving them the opportunity to create a large position. The amount of money you can raise through leverage is usually expressed as a percentage. 1:30, for example, means your leverage is 30 times what you actually put into the market.

10. Directional trading is not restricted.

The foreign currency market, unlike the stock market, has no prohibitions on directional trading. Because traders are continually buying or selling a currency based on the status of the market, you may easily go long or short based on your forecast of the currency’s value shift. Brokers do not trade currencies due of their high liquidity.

[harshitkryptova]

Considering Fintech Investing? Read this!

The Fintech sector is saturated, and mature innovators are setting the bar high for everyone else. Against this backdrop, “challenging the incumbents” is no longer a competitive advantage. To get investors’ attention, you need to be solving a clear, pressing market need that no one else is addressing. Not only that, but your argument must be simple to articulate and supported by evidence.

Not only that, but your pitch must be simple to understand and backed up by market research that shows the offer is worthwhile. Investors will eventually inquire as to why you are doing this. What are you doing that is different from everyone else? What evidence do you have that you — and only you — are capable of accomplishing this? They’ll also want to know how defendable your argument is once you’ve put it together. The bond between finance and technology has grown so strong that the emergence of fintech as a distinct field developed fast and nearly without causing market disruption at first. Fintech is one of the fastest-growing industries today, with several investment and development prospects. Both require major talents to take full use of, and the latter scenario necessitates a significant amount of time. Both require major talents to take full use of, and the time required to develop such skills in the latter case might be extremely lengthy. However, even on the investment side, there is a lot that can be done to get ahead of the competition and create a solid foundation for yourself. Despite the losses in 2020, according to Research and Markets, the worldwide fintech market is likely to develop at a compound annual growth rate of roughly 20% between 2020 and 2025, reaching a market size of around US$305 billion. Fintech innovation and investment have been fuelled by an increase in venture capital investment, investor interest, and private equity investment. Continue reading to learn more about this burgeoning market.

Fintech investment: An overview of the global market Paytech is the largest part of the Canadian fintech ecosystem, accounting for 25% of the market, according to the Fintech Growth Syndicate. Payments Canada defines a paytech company as one that employs technology to facilitate the electronic transfer of value.

Emerging technologies such as AI, blockchain, and cybersecurity will continue to grow, according to KPMG’s report. Global credit card networks like Mastercard (NYSE:MA) and Visa (NYSE:V) are significant drivers of this activity, according to the report. According to the business, “Mastercard and its colleagues are using fintech acquisitions as a strategy to redefine themselves and communicate to the market that they are more than just a set of payment rails.” How to start Investing in Fintech

If you’re serious about investing in fintech, there are a variety of options available, including exchange-traded funds (ETFs) and equities. Fintech ETFs allow investors to gain exposure to a variety of firms at once. Stocks in the financial technology sector businesses are springing up left, right, and centre, and for some investors, this might be daunting.

Regardless of your investment strategy, it’s apparent that the fintech sector has developed significantly in recent years as more private equity and fintech investors have entered the market. Companies are continuing to innovate in finance and, as a result, in capital markets. It appears that the industry will continue to grow in the future.

[harshitkryptova]

What is uniquely different between debit cards and credit card fraud?

Identity theft and credit card fraud are two similar types of criminal activities daily in the United States. However, they have one thing uniquely different when it comes to their methods and penalties.

Organizations commonly use fraud management with assets or money that may need protection from these types of crimes. This paper will look at the difference between debit cards and credit card fraud in the United States.

As we can see, there are similarities between two different kinds of fraud, but the biggest difference is that fraudulent charges on your credit cards can be disputed with your bank if they are made by someone who got a hold of your account’s details (your name, address information, etc.). Fraudulent charges on your credit card have to be disputed with the bank that issued the debit card to get these fraudulent charges removed.

If you are a victim of credit card fraud, report it right away to your financial institution. Debit cards can also be used for identity theft as they contain information and your PIN, allowing criminals to access money from your checking or savings accounts. Financial institutions have gotten better at detecting such charges. However, you can still protect yourself by checking your account balances and statements every day and look into setting up alerts for when a charge is made on your accounts.

What are the different types of debit card fraud?

2 main types of fraudulent activity occur with debit cards: ATM/debit card skimming and computer hacking. With ATM skimming, thieves use hidden devices or cameras attached to ATMs — sometimes even inside the machine — to steal your information. With computer hacking, malicious software is installed on computer systems that handle debit transactions to gain access to card numbers and PINs.

What are the different types of credit card fraud?

Credit card fraud occurs when someone steals your card and goes on a shopping spree that you have to pay for. It can also occur if an employee at a retail store, bank, or other entity where you use your card makes fraudulent purchases using the information, they already have about you or somehow getting access to your account number and password.

How can you protect your debit card from fraudulent activity?

Protecting your debit card is something that everyone should do, and it’s simple to do. To start with, make sure the information on the back of the card is not showing through the crack of your wallet or visible when you use this type of plastic at an ATM.

How does social engineering play a role in credit card and debit card fraud?

Social engineering is one way of gaining access to sensitive information, like your account numbers or passwords. It occurs when someone calls you on the telephone and tricks you into giving up personal information like your mother’s maiden name or your bank PIN. If you have been a victim of social engineering, or think that you might have given out confidential information, contact your bank right away to discuss what could be done about it.

How can organizations protect themselves from credit card fraud?

Organizations need to work closely with law enforcement officials and the banking industry to detect and crack down on fraudulent charges made on their credit cards. It is vital to check your account balances and statements every day and set up alerts for when a charge is made on your accounts. If you do not want any of your credit cards affected by fraudulent activity, it is best to leave all but one card at home.

What can be done about debit card fraud?

If you think your debit card has been compromised or stolen, cancel the card immediately and contact your financial institution to arrange for a replacement. If you notice suspicious activity on your account, report it right away so that they can resolve the issue before further damage is done.

What are some of the factors that contribute to the increasing problem of debit card fraud?

There is a range of reasons why there is an increase in fraudulent activity with debit cards, including:

Lack of protection for consumers

Increased use of debit cards

Change in laws governing bank liability

Why should you always check your account balances?

It’s a good idea to check your account balances frequently and make sure that they match your transactions. You should also take the time to familiarize yourself with how your bank handles fraudulent charges to determine what type of protection you have (if any). If you see anything suspicious or that doesn’t look right with your accounts, contact your bank right away to make them aware of your concerns.

How to set up alerts for when charges are made on your accounts?

Alerts can be set up when a suspicious or large amount of money is spent on your account. You should contact your bank to find out more information about setting these alerts up and what type of protection you have if something goes wrong with them. If you suspect that fraudulent charges are being made on your accounts because someone has obtained your account information, contact your bank immediately and have them review all of the charges on your accounts.

Common ways to prevent credit card fraud

You should speak with a bank representative to find out what you can do to protect your credit card account from fraud. Although it is not guaranteed, you might have some protection, and there are various factors that you should consider when dealing with fraudulent charges on your card.

Common ways to prevent debit card fraud

Your best bet for protecting against debit card fraud is to avoid carrying your debit card with you. It should be kept at home in a safe place, but you must be careful about keeping it there because someone can break into your house and steal the card if they know where it’s being kept.

Conclusion

This article discusses how there are many different ways that debit cards and credit cards can be fraudulently charged or otherwise abused. One of the main differences between fraud on a credit card and fraud on a debit card is that you have to contact the bank that issued your debit card and have them remove fraudulent charges, whereas, with a credit card, these charges can be disputed with your bank. The best way to protect yourself from debit card fraud is to avoid carrying the card with you by keeping it at home in a safe location.

[harshitkryptova]

Cybersecurity- Role of FinTech

Cybersecurity is essential to protect your computer, servers, electronic devices, mobile devices, and networks from malicious and unauthorized attacks. Every day, tons of data is shared across different platforms. This data is sometimes confidential; at other times, it is sensitive. There is always a threat to such data. Therefore, robust cybersecurity is a crucial requirement for every organization.

Before talking about the role of fintech in cybersecurity, let us know what cybersecurity is and what different types of cybersecurity threats are.

What is Cybersecurity?

Today cyber-attacks are becoming very common around the world. The attacks are usually aimed at assessing, changing, or destroying sensitive information. Some attackers even extort money from users in exchange for sensitive information, while others just attack to interrupt normal business processes. Cybersecurity is the practice of protecting computers, networks, and programs from such attacks that are designed to delete, alter or extort information from users’ systems.

Different Threats to Cybersecurity

Let’s see what the different types of cybersecurity threats that you should be aware of are.

1. Ransomware: This attack usually happens through encryption and thereby locking the victim’s system files.

2. Phishing: The fraudulent emails or text messages that you get all fall under phishing. The prime motive of these messages is to steal all your confidential data.

3. Malware: Malware consists of worms, trojans, and spyware software that can harm your computer files or programs.

4. Spear Phishing: It is a type of phishing attack that specifically targets an organization or a business.

Other common attacks that are a threat to cybersecurity are botnets, SQL injection attacks, insider threats, and zero-day exploits.

Why is Cybersecurity Important?

As the systems under the threat of cyberattacks continue to grow, the need for cybersecurity also continues to grow. The government officials, militants, corporate sectors, and financial as well as medical organizations collect various sensitive information on computers. The information they store is highly sensitive and must not be disclosed in any manner. Thus, it becomes essential to protect such data with the help of cybersecurity.

As per a report released in March 2013, it was said that cyber-attacks and digital spying are becoming one of the top threats to national security that has left even terrorism behind.

Now let us understand the security threat in the fintech industry.

Security Threat in Fintech Sector

Fintech has made mobile transfers, electronic payments, end-to-end user systems, and cryptocurrency trading more effortless. It also provides disruptive technologies that enable the development of some innovative financial services more effectively. But because of the sheer number of people who use financial technologies, the considerable risk of data breaches related to sensitive information also becomes relatively high. There are currently more than 12,000 fintech startups worldwide; this means that the hackers now have greater targets to go after.

So, it can be said that the revolution in fintech has put organizations at the risk of cyberattacks. That’s why there is a need for cybersecurity. It is critical to ensure that customers and businesses can still leverage the benefits of fintech. But fintech does not fully comply with the standards of cybersecurity.

Role of Fintech in Cybersecurity

Creating a Culture of Cybersecurity: Usually, fintech companies collect large volumes of customer data that includes some really sensitive and confidential information making it a high-risk target for hackers. But fintech industries are now emphasizing on good digital hygiene these days to make a lot of difference. They aim to start from the company’s culture and go up to train the staff about the standards and procedures of the security.

Using Security Tool: Fintech companies are paying attention to proper cyber resilience covers. They lay great emphasis on VPNs and email scanners now. These tools detect any kind of threats that can be harmful to sensitive information.

Staying Afloat: Fintech companies are building plans now in order to retain clients so that they can get back on their feet and continue to be financially viable. The resilience plan includes all sorts of factors that include post-attack PR strategies.

Efficient Security Engineer: For any fintech solution to be secure, a sound security engineer is vital. It is the ideal approach for fintech companies looking to meet high-security standards in a better way and innovate in areas that banks cannot address as easily.

Takeaway

Cybersecurity threats and risks are growing in sophistication and number. There’s no question about that. Cyberattacks will continue to attack computers, networks and are not going to stop any time soon. It is crucial to have a cyber resilience strategy, especially in an industry where clients entrust their most sensitive information. Though there is no doubt that the security challenge will continue to be the biggest challenge to address for any Fintech firm, one can be at peace knowing that the fintech industry is taking the lead to protect customers and build trust.

[harshitkryptova]

What is the Difference Between ISO and PayFac?

What is ISO?

ISO stands for International Standardization Organization and it is an international body, which has been formed to establish standards in the field of industrial products necessary to ensure safety and efficiency.

It is basically a representation of the quality of a product subjected to controls and inspections so that when it passes through any stage of production or distribution, its performance is ensured.

What are ISO standards?

ISO standards establish the rules for implementing the operational system and method with the steps necessary to produce goods safely and efficiently throughout a production cycle.

What are the Advantages of ISO?

By using ISO standards, a company can improve the production process, quality, and reliability. While these benefits translate into tangible effects on the bottom line, they also provide peace of mind for executives who know they have met their obligations to consumers in terms of quality.

Production capacity is increased because all workers clearly understand their part in the production line.

What are the Disadvantages of ISO?

ISO standards can be expensive and hard to reach.

ISO standards should be met during the design process, not after it is already produced. For example, if a company designs an engine without using ISO engines principles, they need to redesign the whole thing. This means inexplicable losses in cost and time.

If an ISO standard is not met during production, it must be done before the product can leave the factory. This requirement often results in increased costs.

What is PayFac?

PayFac stands for Payment Facilitator and offers online payment gateway services for merchants. It provides full freedom to its users to choose their preferred mode of payment.

It helps in the integration of various payment options available on the Internet. The payments can be made through credit cards, debit cards, and even e-wallets. You need to select your preferred payment mode and then you can begin serving customers across the globe.

PayFac has its own secure gateway, and it provides easy integration with major e-commerce shopping carts. It accepts all payment types, ranging from direct credit/debit to PayPal, Skrill, Paytm, etc. When it comes to payment gateway services, PayFac is the best choice!

Using PayFac, you can process payments with ease without worrying about any cost and technical aspects as your business remains under their care. This ensures the running of a fraud-free business.

PayFac Integration Options

PayFac has a wide range of options to be integrated with, which includes:

1. Online payment gateways

2. Internet banking

3. Offline Payment Gateways

4. Credit Card & Debit Card Payments

5. E-Wallets

What are the Advantages of PayFac?

PayFac is highly reliable and easy to use and integrate. It has a meager cost compared to others. PayFac supports all major credit cards, debit cards, e-Wallets, and other payment options.

It is easily scalable and can be integrated with virtually every kind of eCommerce website or shopping cart such as VirtueMart, OpenCart, etc.

PayFac is compatible with all devices like mobile, tablets, and computers.

Using PayFac, you needn’t worry about the security of your business. They have the best security features to keep your accounts safe from any fraud.

You can get support from PayFac’s experts 24/7. They are always willing to help and guide you in making things compatible by providing professional help, so you don’t need to hire a developer for that.

PayFac provides the best support to make things work smoothly and provide full freedom in customizing your website, ensuring that you can use PayFac’s services without worrying about its efficiency or compatibility.

What are the Disadvantages of PayFac?

Due to the high competition in the market, PayFac can’t be used for international transactions– it is only limited to domestic transactions.

PayFac has no website, and it provides services via third-party websites like Yahoo & Google, etc. So, this may affect the trust factor between customers and merchants depending on their preferred mode of payment.

Differences Between ISO and PayFac?

1. ISO stands for International Standardization System whereas PayFac is the incorporated name of an invoice factoring agency.

2. PayFac does not request maintenance fees like ISO, hence businesses save more money on account of less administrative work.

3. PayFac offers clients a choice if they wish to pay by cheque or bank transfer. In comparison, ISO only allows for cheque payments.

4. PayFac is more flexible in terms of providing a choice to the clients, providing a choice between bank transfer and cheque. However, ISO is different in that it provides only one option i.e. by cheque. This promotes faster cash flow management.

5. PayFac offers a few discounts and yearly subscription discounts which ISO does not.

6. The fact that PayFac provides a variety of payment options is advantageous as businesses may choose to obtain money by the fastest possible method whereas, with ISO, only one payment option (cheque) exists.

7. PayFac offers the advantage of quick and reliable payments but this would probably lead to higher admin costs for the company. Thus, we can see that ISO is preferred by large companies as it provides quality, speed, and reliability, but PayFac is preferable for small businesses.

8. PayFac system offers easy processing, flexible methods of payment, and better cash flow management which makes it an ideal system for companies to adopt when compared with ISO standards.

9. ISO maintains records in a centralized database which makes it easier to audit but PayFac maintains a system that is more flexible in terms of processing, and easily adaptable to the needs of the organization.

10. The main purpose of establishing PayFac was to provide businesses with an improved method of collecting payments. PayFac does not ask for admin costs or monthly fees as ISO does which means that the process is more simplified and takes less time to complete.

11. ISO has a certain threshold value of invoices that need to be collected in order for the factoring agency to take over which may force small businesses to go for another option.

Conclusion:

The conclusion is that PayFac is an invoice factoring agency and does not request maintenance fees like ISO. The benefits of PayFac are its flexibility in payment methods offered (direct debit, cheque, or bank transfer), centralized database records that make it easier to audit, and less administrative work compared to ISO standards.

[harshitkryptova]

By 2030, the global gaming industry will be worth $1 trillion

By 2030, the global gaming industry will be worth $1 trillion

The global online gaming market is predicted to increase at a compound annual growth rate (CAGR) of 12.3% from $64.13 billion in 2020 to $72.02 billion in 2021. The increase is primarily due to businesses resuming operations and adjusting to the new normal while recovering from the effects of COVID-19.

This had previously resulted in operational issues due to tight containment measures such as social separation, remote working, and the termination of commercial activity. At a CAGR of 12%, the market is estimated to reach $112.09 billion in 2025. 888 Holdings PLC, Bet365 Group Ltd Betsson AB, William Hill PLC, GVC Holdings PLC, Kindred Group PLC, Sky Betting & Gaming, Stars Group IncLadbrokes Coral Group PLC, and Paddy Power Betfair PLC are all major competitors in the online gambling business. The changing gaming behaviour of consumers are projected to drive demand for gambling. The rising popularity of gambling applications and social gaming will fuel the market’s growth in the future. By 2020, the global social casino industry is estimated to reach $4.64 billion, with a CAGR of 5%. The demand for online gambling will be driven by the increasing adoption of mobile devices and increased internet penetration, resulting in market development. The licensees are subject to a tight code of conduct imposed by the established and respectable licencing agencies, who must follow the relevant regulations in order to keep their licences. The market’s expansion is likely to be hampered by tight and inconsistent legislation across countries. Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines are among the countries covered by the global gambling market, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom, United States of America, Venezuela, Vietnam Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa are the regions included by the global gaming market.

William Hill, MGM Resorts, Las Vegas Sands, Paddy Power, and Betfair Entertainment are among the biggest companies in the worldwide gaming sector. The worldwide gaming market is divided into three categories:

1) Casinos, lotteries, sports betting, and other forms of gambling 2) By type of channel: offline, online, and virtual reality (VR)

Market Dynamics Trends: One important trend in the market, according to our global gaming software market study based on extensive primary and secondary research, is innovative gaming content and new gaming platforms. New gaming genres, such as MMO (massively multiplayer online) and multiplayer-online-battle-arena, will, on the other hand, be big revenue generators.

Risk Factor: According to the study, one issue in the global gaming software industry is the presence of substitutes such as cloud gaming, which eliminates the need for extra gaming software downloads or purchases. Currently, cloud gaming is in its infancy and does not pose a significant threat in the near future, but as the cloud gaming platform advances, the gaming software business will grow.

Cloud gaming is now in its infancy and does not constitute a significant threat in the near future, but with continued advancements in the cloud gaming platform, the gaming software business may be severely affected by cloud gaming in the next 5 to 8 years.

[harshitkryptova]

CBD Industry - Why considered as High-Risk?

CBD is the acronym for cannabidiol, a natural chemical compound within the cannabis plant. The cannabis plants are primarily of two types- marijuana and hemp. These plants contain two types of chemicals- CBD (cannabidiol) and THC (tetrahydrocannabinol). THC is the psychoactive chemical in these plants that produces an intoxicating ‘high’ when consumed. CBD on the other hand has much milder effects.

CBD has been known to treat pain, anxiety, cancer, PTSD, epilepsy, and other common ailments. Since its medicinal benefits have been discovered by scientists, cultivation and selling of CBD products has been legalised in many countries. It is now available in tinctures, creams, pills, oils, candies, baked goods, and vape juice.

Now that it is gradually becoming a legalised industry, CBD companies and start-ups are emerging all around the world and gaining traction. This industry is booming and is expected to hit around $22 billion by 2022. However, the legalisation of this industry brings a lot of restrictions because of which they face a lot of challenges that other start-ups do not have to normally deal with.

Why CBD industry is considered high-risk

All CBD companies are deemed high-risk due to the nature of the business and the severe legal restrictions on hemp and CBD products. Until regulations are amended in favour of CBD sales and use, CBD firms pose a legal danger to lenders, banks, commercial property owners, and others. Let us have a look at the challenges and risks involved in this industry, which are responsible for making this industry a part of the high risk industry.

Legislation — Despite the fact that laws regarding CBD are becoming more favourable, the issue remains rather controversial. Despite the fact that CBD does not have the same psychoactive impact as marijuana, many people nevertheless connect it with it. Businesses who are lawfully selling CBD projects must bear the stigma of being linked with marijuana due to the widespread misunderstanding about CBD oil.

Risk of chargebacks — Companies must seek CBD merchant services in order to offer credit card processing to their consumers. Finding a payment processor to work with is difficult for a CBD company since it is still deemed to be high risk. Because the advantages of the cannabis plant and CBD initiatives have not been evaluated by the FDA, they have a greater risk of chargebacks from consumers who are not happy with the product.

Slow licensing and expensive — For cultivators and distributors, the legalisation of CBD products has brought with it seemingly infinite laws and legal processes. To get a license, they must pay application fees and other relevant expenses, and then wait an undetermined amount of time, which may be months, before receiving a licence.

Wrong public perception — Another important issue for CBD businesses is public image. Consumers, as well as payment processors and other service providers, have a prevalent misunderstanding that CBD products would give users a high similar to marijuana. Although this is totally incorrect, the myth persists. CBD firms face several challenges as a result of wrong assumptions and the general unfavourable public image. Some customers refrain from testing the goods because they believe the myths.

CBD businesses are classified as high-risk merchants because they operate in a high-risk sector with multiple regulatory bodies such as the Food and Drug Administration (FDA) and the Federal Trade Commission (FTC) enforcing safety and health laws. CBD’s legal status varies from state to state and country to country.

Hemp-derived CBD products that contain less than 0.3 percent THC are deemed federally lawful under the 2018 US Farm Bill. However, certain state laws may make this unlawful. CBD products produced from cannabis, on the other hand, are prohibited under federal law but may be legal under state law.

Conclusion

For all the reasons mentioned above, the CBD industry is considered as high risk by banks and payment service providers. The regulations around CBD may change, and there is a danger of public perception harming a company’s brand in an unjustified way. It’s no exaggeration to say that CBD businesses often struggle to find payment processors and other merchant services. Even when CBD businesses do find merchants that are ready to work with them, the difficulties remain.

They have to cope with tougher chargeback regulations and have a greater percentage of refused payments. For offshore merchant accounts, CBD firms face very stringent criteria and rules. It’s also why major credit card and online payment processors like as MasterCard, Visa, American Express, PayPal, Square, Stripe, and Shopify all refuse to handle credit card or online payments for CBD businesses.

Business owners operating in this industry will probably continue to face such challenges unless banks and other government agencies join in to make it simpler to do business in the market.

[harshitkryptova]

Outsourcing VS Offshoring: What is Right for Your Business?

Outsourcing and offshoring are two different yet similar concepts.

This article will focus on offshore outsourcing for businesses to expand their operations while keeping overhead costs low.

What is Outsourcing?

Outsourcing is the process of contracting a company to handle tasks or functions that your company would normally handle in-house.

Outsourcing can produce cost savings for businesses, especially if they want to expand their operations and keep overhead costs low.

Companies outsource jobs that either cannot be performed at the company or are currently performed by employees who can be better utilized in other tasks.

Outsourcing can be successful if you find a good partner that will allow you to do what’s necessary for success in your industry with minimal risk and cost!

What is Offshoring?

Offshoring, or offshore outsourcing, is the process of sending one or more aspects of your business overseas to a company located in another country for lower wages and a higher skill set.

Offshoring is traditionally employed by developed countries to relocate some business or industrial processes to a workforce in a developing country to minimize cost and increase efficiency.

Why Should You Outsource Your Business?

Outsourcing can help maintain profitability by lowering operating costs. Many companies outsource their IT, saving money on software licensing and up-gradation of hardware while taking advantage of the specialized services offered in many countries that are not available stateside.

Benefits of Outsourcing for Your Business

The benefits of outsourcing your business are cost savings, flexibility in the workforce, and specialization. Let’s look at them in detail below:

Cost Savings

Many companies outsource payroll processing to their international employees because it is cheaper to do so than to hire an employee with the same skill in their country. Oftentimes, wage rates and tax laws make payroll outsourcing a necessary option for success!

Flexibility in workforce

If your company needs a temporary boost in an aspect of its business, such as increased sales from client orders during a busy period, then you can hire a freelancer through oDesk or another outsourcing platform. You will be able to hire them only for the required time and then let them go without worrying about firing or rehiring. This can save your company thousands in hiring costs and time spent on the hiring process.

Customization of services

When you create a new product, such as a phone app, it is often cheaper to have an overseas company handle the programming and other technical needs. This way, your time will be spent creating the next big thing rather than learning how to program in basic HTML! When you outsource the manufacturing of a new game controller for your gaming software, the manufacturer will customize it to fit your requirements while producing it cheaper than what it would cost at home.

Why Should You Choose Offshoring For Your Business?

Globalization has made offshoring a viable option for companies looking to expand their overseas operations. Companies today can take advantage of these benefits:

1. Lower labour costs, due to the lower salaries in other countries

2. Lower overhead costs by not having to pay for insurance paid leaves, and other expenses that are negligible or non-existent in countries like Malaysia, India, and China

3. Using other companies to handle the business processes that are most cost-effective

4. Having a business partner (offshore service provider) can allow you to concentrate on your core competency while handling everything else.

Offshoring is not without risks, though. You need to make sure that your chosen partner will handle the jobs necessary for your business’s success.

Benefits of Offshoring Your Business

There are three main areas in which cost savings can be achieved when you utilize offshoring: labor, materials, and overhead.

Offshore companies generally have lower wages than U.S. businesses, especially for workers in non-technological fields such as customer service representatives and nurses. For example, U.S.-based call centers pay $7 an hour [in the US], while a Malaysian call center pays its employees about $1 an hour to answer customer calls. In addition, some companies cannot afford the costs of maintaining a building, cleaning staff, installing the technology, and other overhead expenses.

To offset these costs, they may opt to relocate their operations offshore. For example, an American manufacturing company has a factory in China that manufactures stereo equipment employing Chinese workers who earn less than $1 per hour. This type of business model is also known as a WFOE or Wholly Foreign-Owned Enterprise.

Other U.S.-based companies choose to own their overseas business in a Joint Venture format. This is similar to an ownership structure of 50/50 formed when two separate companies agree to pool their resources together to create new revenue streams. The U.S.-based company will partner with a Chinese company, creating an equal partnership so the decisions can be mutually beneficial to both parties.

The Pros and Cons of Outsourcing and Offshoring

Pros of outsourcing:

1. Your business has more time and capital to work on new ideas and projects rather than reinventing the proverbial wheel over and over again.

2. You have a dedicated team of professionals working to help you succeed, with one specific goal in mind: the company’s success. This is especially important if your business has reached its limit with growth and requires employees specializing in their industry.

3. If you fail or your partner fails, it doesn’t affect your success. You can get rid of the partner and find another one that will allow you to concentrate on growing your business without worrying about handling the business processes necessary for it to succeed!

4. With outsourcing, low-level employees are not as important to your business’s success because they may be replaced anytime with minimum cost or effort. The only consideration is who is the best or the most efficient candidate to handle your company’s needs.

5. You won’t need any additional space or office equipment. Your newly hired business partners are likely already equipped for what you need them to do.

The Cons of Outsourcing:

1. You have no control over how your product is made. You may be employing individuals who are not your ideal candidate to handle the task you are looking for, thereby affecting the quality of work.

2. If you do not have a clear idea of your business needs, you may be paying too much in labor costs or not getting good results from offshore employees.

3. It will be hard for you or your business partners to assess a candidate’s work ethic if you have never met them in person. You must trust that they are efficient at their job and can deliver quality work because communication between you is difficult without face-to-face interaction.

4. It may be difficult to recall employees due to high employee turnover.

The Pros of Offshoring:

1. It allows you to expand your business cost-effectively.

2. You can reduce expenses by having employees in foreign countries complete tasks for your business.

3. It is easy to find a partner who has the same work ethic as you do and can be trusted for as long or as little time as your business needs them.

4. You will have the ability to expand your business quickly.

The Cons of Offshoring:

1. If you have no knowledge of the laws in a foreign country, it may be difficult to set up an operation there.

2. Foreign countries may not be as reliable in having an infrastructure that can sustain your company’s success.

3 . Business partners in foreign countries may have different laws that are not always enforceable by U.S.-based companies or even local law enforcement. These companies may be taking advantage of the fact that they are home to many foreign companies looking for a cheap labor force to work.

4. It is hard to recall employees due to high employee turnover.

What is Right for Your Business?

Outsourcing is ideal for companies that want employees to focus on more important things like marketing or expansion. Outsourcing also allows you, as a business owner, to have more time and capital to work on your own ideas instead of spending it on hiring new employees and managing current ones.

Offshoring is ideal for businesses with limited capital looking to expand exponentially in a short amount of time. It is also an option for companies that want to introduce new technology into their existing business processes and need the help of foreign workers who have specific skills suited to those processes.

If you feel that offshoring is the right option for your business, finding a business partner overseas to build a long-lasting relationship is important. Choosing an offshore company that has a similar work ethic and professional standards as yours will help you get the most out of your outsourcing efforts!

If you feel that outsourcing is the better fit for your company, it’s important to find the right workforce to build a long-lasting relationship. Choosing an outsourcing company that prioritizes quality work with minimal wages will help you get the most out of your outsourcing efforts!

[harshitkryptova]

10 Tips about Choosing a Payment Processor

In a nutshell, choosing the right payment processor will help you to save time and money. The most important factor to consider when choosing any processor is that the fees charged for processing transactions should be competitive, with minimal charges or no hidden costs.

Many small eCommerce businesses in this day and age choose not to use a traditional merchant account. Instead, they opt to process transactions using their bank or credit card company directly. Understanding the differences between each processing type is key and will help you select what payment processor works best for your business.

If you think of utilizing a third-party payment processor, there are many important questions to ask before choosing one. Here are some of the top questions that you should ask before choosing a payment processor:

1. Which methods of payments do they support?

To find out what methods of payment work best for your business, it would be best to contact and research your target market. Different demographic groups have varying preferences when it comes to paying online. For instance, older generations are more likely to use checks and money orders, while younger consumers prefer PayPal.

2. Do they support recurring billing?

This type of billing is best for monthly service companies like software or e-learning institutions. Recurring billing helps create predictable revenue streams that can be relied upon by small businesses struggling with cash flow problems often seen during the early stages of a small business. In addition, recurring billing is a great way to stay on customers’ credit card statements.

3. Will they provide you with a virtual terminal?

This can be extremely useful for businesses that do not have a physical location and allows you to accept payments through your own website or storefront via your computer.

4. Do they offer tax benefits?

Ensure whether or not the service provider you choose offers any particular tax advantages that can help you reap benefits from their services. For example, if you process a large number of transactions with higher values, some processors may be able to offer you a reduced 1% rate for these types of transactions.

5. Do they provide a multi-currency option?

This is a significant factor for online businesses that do business internationally. If you are considering a foreign market, it would be best to choose a processor that accepts multiple currencies to accept any payment from the country you operate in and expand your customer base.

Why Choosing a Payment Processor for eCommerce Can Be Difficult?

When it comes to choosing a payment processor, especially if you are new to eCommerce, you may find the process to be overwhelming. A typical online business will be faced with choosing a processor that fits their specific needs. Although there are many different processors, choosing the one that fits your business best may be confusing and overwhelming. You will find yourself asking important questions like: What is an ISO? Should I use Authorize.net or PayPal for my eCommerce store?

Here are 10 tips to help you make a smart choice when it comes to choosing a payment processor:

1. Order Volume is Important

Consider the volume of orders your site will be getting, as this can impact which options are available. You may not be able to accept all types of cards if you do only a small amount of business with each order.

2. Security is Important

Having a processor that protects your customers’ information and keeps it secure is another important feature to consider when shopping for a payment merchant account.

When making your selection, you should find out how each processor handles the security of your customer’s credit card information. Does it use 128-bit SSL encryption? Some firms are certified PCI (Payment Card Industry) compliant, and others claim to be similarly secure.

3. You Can Save Money with the Right Processor

A business with high transaction volume may be able to save money by using an Interchange-Plus pricing model, or one with more than $1 million in annual gross sales may qualify to be rated by a bank or payment processor.

4. Support is Important

Customer support should always be considered, as you never know when you will need them and how long it takes for them to reply to your queries.

5. International Acceptance is Important

If your business has local and international customers, then accepting international cards is critical. Many small businesses that are just starting may not realize the importance of this choice right away, but it can significantly impact sales over time.

6. Customer-Friendly Websites Can Be Important

One of the most overlooked features is when a business chooses their payment processor on the basis of whether or not they offer a customer-friendly website. These sites may contain items such as shipping information, order updates, and promotional offers.

7. Your eCommerce Store is Important

When shopping around for a payment processing service, you should also look at any software requirements needed and make sure the chosen processor has compatible programs to allow your business to work smoothly.

8. Do They Have Any Money-Back Guarantees?

If a service provider offers money-back guarantees, getting your money back for fraudulent charges may be easier.

9. Customer Testimonials Can Be Important

Always look for customer testimonials and reviews of the service provider that you are considering using. This will help you determine if they have a good rating from their customers and how many years they have been in business.

10. Rates are Important

If you plan to accept cards or electronic payments, make sure the rates and fees match your needs. If you aren’t sure what fees are being charged, it may be wise to seek the expertise of a third-party vendor for assistance.

There are so many payment processing systems out there it’s no wonder the high-risk industries have been taking advantage of them. ISO, Kryptova and PayPal seem to be a few of the most popular ones with their own features that make for an easy purchase process.

What is an ISO?

An Independent Sales Organization (ISO) is a third party that provides payment services to merchants, product fulfilment, and customer service. You can find ISOs in nearly every segment of the payments industry, including credit card processing, check verification, and bill payment services.

If you want your business to succeed online, you’ll need a payment processor that can provide all of your needs at such a competitive price. Think about what features are most important for your business type and compare several different processors on the market before deciding.

What is PayPal?

PayPal provides online payment options for businesses that may not have the option of using a traditional merchant account. It allows you to accept payments from customers using any major credit card, as well as cash and bank transfers, through your website or even by email. You can also issue invoices and accept payments for goods and services overall under a PayPal account.

What is Kryptova?

Kryptova provides payment processing for High-Risk Businesses that may not have the option of using a traditional merchant account. It allows you to accept payments from customers using any major credit card or crypto payment as well in a single checkout. Your customer can pay you whichever way and all the payment is right in your wallet.

Conclusion:

When you are looking for a payment processor, consider each provider’s security features and customer support before making your final selection.

[harshitkryptova]

What is Acquiring Bank, Card Scheme, and Issuing Bank?

Acquisition bank, card scheme, and issuing bank are common terms used in the banking sector. You may be familiar with their meaning but don’t exactly know what they mean. Let’s learn what they are.

What is an Acquiring Bank?

An acquirer bank (also known as credit card bank, merchant bank, or acquirer) is a licensed financial institution that is a member of a card association. It opens merchant accounts for businesses and accepts payments through the credit network and payment processor. An acquirer can also serve as a settlement bank, which facilitates settlement and communication of merchant payments. Visa and Mastercard, for example, have their own regulations and compliance requirements that applicants must meet before they are allowed to become an acquirer.

Merchants who wish to open accounts with an acquiring bank must first provide information about their identity and ownership. The bank will also need their business records to assess the risk associated with managing the merchant’s account. A contract specifying the details such as fees and reserve funds, holds, etc., will be drawn if the bank approves the merchant’s application for an account. Depending on the bank, this contract can be either standard or tailored to the merchant’s requirements.

Role of Acquiring Bank

Acquiring banks facilitate communication between credit agencies and businesses and ensure that transactions are secure. They provide merchant accounts and unique ID numbers to business establishments. These unique ID numbers and merchant account numbers are required to process transactions using major credit card networks like Visa, Mastercard, and American Express. To avoid fraud or breach of sensitive information, every acquiring bank must follow the Payment Card Industry Data Security Standard.

What is a Card Scheme?

Card schemes are major payment networks that use credit and debit cards to process payments. Its primary function is to manage payments transactions, operations, and clearing. The rules and procedures that govern transactions allow cardholders to use cards with retailers and other service providers. Acquiring Banks and other financial institutions can apply to join the scheme. They then issue credit or debit cards to the scheme’s members and acquire money through transactions. A bank might apply to join a Visa program and issue Visa debit cards or credit cards to its customers.

The two of the largest global brands, Visa and MasterCard, are known as card schemes. They provide debit and credit cards that are universally accepted. Although card schemes are used by millions of people, there is no direct relationship between them and consumers.

What is an Issuing Bank?

An issuing bank, also called the issuer, is a financial institution that issues credit and debit cards on behalf of major card networks such as Visa, MasterCard, and American Express. There are more than a hundred of thousands of issuers who provide credit and debit cards to their customers throughout the world. Because of the risk associated with issuing cards, the issuing bank, not the card networks, accept the liabilities and guarantee payment in case of loss or damage.

The issuing bank will write off any cardholder who is unable to pay their debts. The issuing bank bears the costs of recouping them.

In the transaction process, the issuer is responsible for customer authentication and ensuring that the cardholder has enough funds to cover the transaction.

The issuing bank is also in charge of approving and denying credit card applications, collecting payments from the cardholders, and providing customer support.

Role of Issuing Bank

Online transactions are handled by issuers or banks that act as middlemen between customers and card networks. It is not common to believe that credit card networks such as Visa and Mastercard issue debit or credit cards. In fact, the card is issued by banks and credit unions.

It is essential to be aware that specific card networks, such as American Express and Discover, are their own banks. The issuer makes a contract with the customer and provides a line credit that the customer can use to purchase credit cards and pay back the issuer with interest. The issuing bank contacts the merchant’s bank to transfer the funds to the customer when the customer makes a purchase using their card. After charging fees and other charges, the acquirer will transfer those funds to the merchant’s account. The issuer is responsible for non-payment, but card networks have rules that both issuers and acquirers must share the liability.

If a customer suspects that a charge to their credit card was fraudulent or invalid, they may contact their issuer to initiate the chargeback process. If the customer is found to have a valid dispute, the issuer will send the chargeback to the acquirer. The merchant will then be notified that they can either accept or reject the chargeback. The acquirer will notify merchants who are fighting the chargeback and send them any statements or evidence. The issuer will then decide based on that evidence.

Kryptova can get you the merchant services your business needs. At Kryptova, we can help you choose the right merchant service provider. With the right merchant account, your business will thrive and get the most out of our services. In as little as 48 hours, Kryptova can present you with a number of merchant accounts to choose from. Additionally, we provide the most competitive rates without compromising quality or security.

[harshitkryptova]

What exactly is forex trading and how does it operate?

Buying and selling other sorts of securities, such as stocks, is comparable to forex trading. The most significant distinction is that forex trading is done in pairs, such as EUR/USD (euro/US dollar) or JPY/GBP (Japanese yen/British pound). You sell one currency and buy another when you make a forex deal. Currency exchange takes place on the foreign exchange market. Currency is significant because it allows people to buy goods and services both locally and across boundaries. In order to undertake international trade and business, international currencies must be exchanged. An Overview of the Foreign Exchange Markets

The Foreign Exchange Market (Forex Market) is where currencies are traded. It is the world’s only completely nonstop and continuous trading market. Institutional firms and huge banks dominated the forex market in the past, acting on behalf of clients. However, in recent years, it has become more retail-oriented, and traders and investors with a wide range of holding sizes have begun to participate. What are the ways that forex traders generate money? The process of speculating on currency values in order to generate a profit is known as forex trading. Currencies are exchanged in pairs, so when a trader exchanges one currency for another, he or she is betting on whether the value of one currency will rise or fall in relation to the value of the other. What is the best way to get started trading forex? Forex trading is comparable to stock trading. Here are some guidelines to help you get started with FX trading. 1. Educate yourself on Forex: While not difficult, forex trading is a unique project that necessitates specialised understanding. Forex trades, for example, have a larger leverage ratio than equity trading, and the determinants of currency price movement differ from those in equity markets. For beginners, there are various online courses available that teach the fundamentals of forex trading. 2. Open a brokerage account: To get started with forex trading, you’ll need to open a brokerage account. Commissions are not charged by forex brokers. Spreads (also known as pips) between the purchasing and selling prices are how they generate money instead. Setting up a micro forex trading account with minimum capital requirements is a smart option for new traders. Brokers can limit their trades to as little as 1,000 units of a currency using these accounts, which have flexible trading limits. To put things in perspective, a basic account lot is 100,000 currency units. A micro forex account can assist you in becoming more comfortable with forex trading and determining your risk tolerance. 3. Create a trading strategy: While it is not always feasible to foresee and time market movement, having a trading strategy can help you establish broad trading principles and a roadmap. A solid trading strategy is based on your current status and financial situation. It considers how much money you’re willing to put up for trading and, as a result, how much risk you can accept without losing your investment. Keep in mind that forex trading is primarily a high-leverage environment. However, those who are willing to take the risk will be rewarded more. 4. Always check your figures at the end of the day: Once you start trading, you should always check your positions at the end of the day. The majority of trading software currently has a daily trade accounting feature. Make sure you don’t have any open positions that need to be filled out, and that you have enough money in your account to trade in the future. 5. Cultivate Emotional Equilibrium: Learning to trade forex is filled with emotional ups and downs, as well as unresolved concerns. Should you have kept your position open a little longer for a bigger profit? How did you miss the report regarding low GDP numbers, which resulted in a drop in your portfolio’s overall value? Obsessing over unsolved questions might lead to a state of befuddlement. Choose a currency pair to work with. When you trade forex, you’re swapping one currency’s value for another.

If you are looking for a Merchant Account to accept Crypto/Card Payments, it’s well worth opening an account with a crypto payment gateway website. It will make the process much easier if you want to add that option to your transactions. Book your demo today on Kryptova.

[harshitkryptova]

What is E-Check Payment?

E-Check payment is actually the electronic payment. Here the client makes the net payment through eCheck and the sender accepts payment inside 3–5 business days. automatic financial organization is accountable to method the echeck transactions on-line. consumers method the payment through electronic delivery system and also the buyer’s checking account information is employed to require the payment from the savings account. It’s one among the renowned modes of payments in conjunction with group action through credit cards and debit cards.

An eCheck may be a reasonably electronic funds transfer that depends on the ACH network to complete payments. cash is subtracted from the payer’s checking or saving account, transmitted over the ACH network, and accumulated to the recipient’s bank account. The eCheck (or electronic check) may be a progressive version of the ancient paper check and makes electronic payments additional helpful. Paper checks may also be remodelled into eChecks by businesses and accepted and processed electronically. This makes for an easier and faster method for the business owner.

In short, eChecks are a bit like paper checks, except

1) They’re not written on paper, they will be recognized over the phone, through the web, or by fax, and

2) Business homeowners need to open an associate account with an associated eCheck processor so as to simply accept eChecks.

The key distinction between eChecks and ACH

Even though they’re nearly identical, eChecks and ACH represent completely different data flows, similarly because of the legitimacies that encircle them. The biggest distinction is that the party that holds the payment data and transmits the payments. For different ACH processes, it’s ordinarily controlled by specific entities that use the banking knowledge that you just submit. the danger management of ACH compared to eChecks additionally differs.

Accepting eChecks in your business

To start accepting eChecks, a business entity needs to open an account with an associate degree eCheck processor. So, additionally to being capable of receiving checks over the phone and on-line, receiving eChecks additionally sometimes hurries up the time interval for such transactions, permits a business owner to trace funds in real time, and you don’t have to attend the bank to deposit paper checks. Electronic checks, processed through the ACH network, area unit one amongst the foremost reliable ways of payment around and area unit supported by banking establishments and therefore the U.S Treasury.

The additional approaches your purchasers pay you, the more cash you create. ACH electronic checks square measure the foremost prevailing different payment methodology for Americans. associate ACH account offers your customers associate applicable thanks to pay you thru a checking account instead of applying a card.

• Minimal Rates. ACH electronic check process rates square measure appreciably lesser than card merchandiser accounts.

• Quick Approvals. Get additional orders quicker. Focus on hurrying up in promoting your product.

• High Volume ACH Accounts. Get the electronic check process capability you need to with success grow your business.

• ACH Echeck Authentication. Keep yields low and lower ACH process expenses.

• Ecommerce. settle for checks on-line. Addition of ACH echecks to your checkout page can boost your sales.

• Accept Checks by Phone & Mail. Unlimited virtual terminals for quick process of phone & mail orders (MOTO) square measure a customary part with all ACH accounts.

• Bulk process. transfer giant ACH echeck payment files for quick process.

• Recurring asking. ACH echecks square measure superior to cards for continual payments.

• Cloud news. strong news in multiple formats. Quickly track all transactions. Management of ACH echeck payments may be a breeze.

If you are looking for a Merchant Account to accept Cryptocurrency/Card Payments, it’s well worth opening an account with a crypto payment gateway website. It will make the process much easier if you want to add that option to your transactions. Book your demo today on Kryptova.

[harshitkryptova]

Rise of Contactless Payment After Covid-19

Covid-19 changed the way people interact with each other. Nobody thought that a day would come when people would be forced to stay indoors, and physical contact would be a thing of the past. People are adjusting to life post-Covid and making changes in their lifestyle. One such change is using contactless payment more to avoid touching others to stop unknowingly spreading the virus.

Although the second wave of Covid has passed, scientists predict that the third wave may come earlier than expected if preventive measures are not taken. As it is, many businesses have faced financial loss due to Covid, and they won’t like to add to their woes. That’s why age-old companies, including banks, are rethinking their daily operations. They are trying to integrate contactless payment into their day-to-day operations.

So, what precisely does contactless payment mean? Let’s find out.

What Are Contactless Payments?

Contactless transactions have become quite popular in many parts of the world. As the name suggests, contactless payments are a mode of paying for goods or services without physically touching the money, swiping your card in a machine, or making physical contact with another person. You may not have paid attention, but you have likely paid for something using contactless payment. Remember the time when you scanned a QR code at a checkout counter of a grocery store? Yup. That’s what contactless payment means.

Contactless payments are convenient for customers, retailers, and banks to conduct seamless, swift, and socially distant transactions. Once set up, the systems are relatively maintenance-free.

How Do Contactless Payments Work?

It seems very easy to make contactless payments. You just need to scan the QR code of the person you are paying or search the payee by name and pay them using the digital wallet you use. Pretty easy. Right? But the reality is far from it. So much goes on in the backend.

The contactless payment systems work with the help of a widespread technology built upon electromagnetic fields called radio-frequency identification (RFID). The technology employs memory chips that store data or “tags,” and RFID readers that decode the message. It is used for everyday tasks like package tracking, inventory management, and toll collection.

Contactless payment systems often depend on near-field communication (NFC), a more complex technology that falls under the RFID umbrella. Unlike RFID that can function at a distance of many feet, NFC mobile payments only work when there’s a small distance (usually a few centimetres) between the devices involved. It is the technology behind payment services like Apple Pay and Google Pay. Cardholders can use contactless payment platforms on their smartphones or watches for fast and easy transactions at point-of-sale (POS) terminals.

When it comes to banking, cardless ATMs allow customers to withdraw money with just a simple swipe, scan, or tap. Instead of physically putting a debit card into the machine, these ATMs let customers withdraw cash through their smartphone app. Some banks even issue contactless credit card and have their own proprietary apps for accessing cardless ATMs, while others collaborate with third-party mobile wallets like Apple Pay. These apps generate verification codes or display a digital version of the user’s debit card. Users can scan the code or tap the device near an indicated spot in the ATM booth, and that’s it — the transaction is complete.

Why Rise in Contactless Payment?

In early March 2020, the World Health Organization warned countries that physical currency might carry and spread the Covid-19. It made the need for contactless payments even more pressing. Although it was not clear earlier how likely one was to catch Covid-19 by touching surfaces or objects, many businesses, including banks, wanted to minimize the risk of infecting customers, however minuscule it may be. Hence, they gave a push to contactless payment.

With the “new normal” way of life where people were striving to keep their distance from others, it was only natural for banks and card issuers to adjust to the new trend and introduce contactless payments. In many countries, overall usage of contactless payments has more than doubled since March 2019, when the Covid became worse. But even before the pandemic, banks were trying to nudge their customers toward contactless payments by offering them rewards for using contactless payment platforms. Even Google jumped into the bandwagon and started rewarding people for shopping, making payments using its online payment app Google Pay.

Future of Cashless Payments

As the pandemic is not yet curbed, it seems unlikely that people will be eager to wait in lines of more than a couple of people to deposit checks or make withdrawals. It’s even unimaginable that they will want to handle wads of cash and coins that hundreds of strangers have touched. They would like to steer clear of making physical payments knowing that someone infected with the virus might have handled the money. Additionally, they will likely want store clerks and bank tellers to maintain physical distance. So, the trend of contactless payment will not fade away with time. It will continue to grow from here.

Visit Kryptova to see how you can implement crypto in your business?

Giving website visitors and potential customers various payment options to choose from is important, for enhancing customer experience and help turn online searchers into paying and long-term consumers. A convenient checkout process is plausible to give your website more sales, decreased cart abandonment, and brand trust. If you want to find out more, read more about friendly payment methods on Kryptova, if you’re thinking about accepting various payment methods using just a single payment system. Visit Kryptova now to learn how to implement crypto payment options into your business.

[harshitkryptova]

Merchant ID(MID): Everything You Need to Know

Do you know that being a business owner, what will be the most important thing for you and your business? It’s a merchant ID or MID. It is with the help of a merchant ID that the funds from a transaction make it from your cardholder’s bank to your merchant account. But what exactly is a merchant ID, and how does the money involved in transactions always end up in the right place? Read on to find out.

What is a Merchant Identification Number?

A merchant identity number or MIN is a distinctive, numerical code provided to merchants by their payment processor once they successfully open a merchant account. Your MID needs to be a unique combination of numbers and letters because this uniqueness will ensure that the credits and debits made to your merchant account are accurate. It is because of MID that transactions are being able to process securely to your merchant account. The unique code in MID is transmitted along with cardholder information to involved parties for transaction reconciliation.

The MID can help identify a merchant during the processing of debit and credit card transactions, adjustments, chargebacks, and fees, among others. It is highly unlikely that a business accepting card payments will have no MID as all merchants receive a MID when they open a merchant account with an acquiring bank.

If your Merchant Identification Number (mid) lands in the hands of the wrong people, it can be used to run illegitimate transactions. So, always make sure that no unknown person gets hold of your MID. Do everything you can to keep your merchant ID safe and secure.

How to Get a Merchant ID Number?

The first step towards getting your merchant ID number is applying for a merchant account. But before that, you need to verify the authenticity of your business. For that, you will need the following documents:

Taxpayer Identification Number

Documents stating that you pay taxes

Names of the principal owners

Other legal documents

In some cases, ISOs or Independent Sales Organizations act as a bridge between the merchant and acquirer. They can help merchants get a MID acquisition.

Once you have successfully applied for MID, the acquirer will review your application under a process called underwriting. You will be presented with the proposed terms and conditions. To generate a MID that will efficiently route your payments, your acquirer will also ask you few questions like:

What is the projected volume of transactions?

Which is your preferred currency?

Will you process one-time transactions or recurring payments?

Do you need to apply for an authentication protocol like 3D Secure 2?

After that, MID will be shared with you, and you can begin processing credit and debit card transactions.

What is the Need for a Merchant ID?

Every business online or offline that accepts card payments needs a merchant account and merchant ID number to identify their specific merchant account in a card transaction and route the funds to it. Suppose you run a business and need an account where your business’s funds will be deposited. A merchant account will be that account. Using it, you will receive payments from your customers for the goods or services you sell. And if you have a merchant account, you’ll definitely need a MID. A merchant ID is sensitive information and should be kept private, similar to one’s bank details.

How to Track Merchant ID?

Business owners need their MID for a variety of different things. As a business owner, you would likely need to put in your MID a couple of times in different platforms such as your CRM or order management system, gateway, and chargeback management technology.

As MIDs are usually unique strings of numbers and/or letters, it can be difficult to remember them. You’ll probably need to search for your MID when it comes time to use it. But instead of looking it up at the last moment, it is always better to know your MID number in advance to avoid last-minute chaos.

Different places where you can look up your MID are:

VAR Sheet: When the processor approved your merchant account application, you must have received a VAR or value-added reseller sheet (sometimes also called a tear sheet or parameter sheet.) Along with other account details, your VAR sheet will have your MID on it.

Merchant Account Agreement: A merchant account agreement typically contains the MID.

Merchant Account Statements: Your monthly merchant account statements will have MID printed on them.

Online Account Portal: If your acquirer has an online account portal, your MID is probably included with other account information.

Can Merchants Lose their MID?

Technically, merchants cannot lose their MID. However, suppose their actions violate the terms of service with the acquirer or payment service provider. In that case, they can lose their ability to process payments, and acquirers may freeze or even terminate their merchant account. As a result, their merchant account will be closed, and its identification number will eventually cease to exist.

There are several reasons merchants may lose their ability to process payments, including money laundering, selling prohibited items, excessive chargebacks, or other potentially fraudulent activity.

The key to protecting your merchant account and your MID is limiting chargebacks and ensuring your payments are secure and fraud-proof. Your payment service provider should provide you with numerous tools to prevent chargebacks due to criminal fraud and give you access to analytics and data that can help you optimize your performance and increase your conversions. If you don’t have access to these tools, contact your payment service provider.

Trust Kryptova to Establish Your Merchant Services!

Kryptova can get you the merchant services your business needs. At Kryptova, we can help you choose the right merchant service provider. With the right merchant account, your business will thrive and get the most out of our services. In as little as 48 hours, Kryptova can present you with a number of merchant accounts to choose from. Additionally, we provide the most competitive rates without compromising quality or security.

[harshitkryptova]

Do you know the difference between Chargebacks and Refunds?

Unlike refunds, chargebacks come with additional fees for the merchant and increase a merchant’s chargeback ratio. If a merchant’s chargeback ratio exceeds certain thresholds, often around 1%, it can result in serious consequences, including fines, higher fees, higher reserve requirements, or even the termination of a merchant’s account. A voluntary refund, however, is strictly a matter between the merchant and the customer

To the casual observer, the difference between a chargeback and a merchant-initiated refund might seem trivial. The customer gets their money back either way, so is one really worse than the other? Of course, any merchant who’s had to deal with chargebacks first-hand knows the answer to this.

When a customer has a legitimate problem with a purchase they’ve made, it’s always better to give them a refund rather than leave them with no alternative but to file a chargeback. In some cases, it can even be preferable to refund a customer who you’re not sure has a legitimate problem, just to avoid a likely chargeback.

According to the Consumer Returns in the Retail Industry report published by Appriss, product returns and refunds for services cost US business more than $350 billion annually. This mind-blowing number is affected primarily by the online retail industry – in comparison with brick-and-mortar stores, where the return rate is only 8.89%, at least 30% of all products ordered online are returned for different reasons.

The return policy is a statement stipulated by the merchant that he is willing to accept previously purchased items and refund the customer (fully or partially) when certain conditions are met. The exact return policy and conditions depend on each individual merchant, but generally, customers can ask for a refund in cases such as:

The purchased product arrived with damages or factory defects

The received item didn’t arrive as described on the website

The merchant shipped the wrong item

The purchase didn’t arrive on time, or it was no longer needed

In the case of purchasing clothes, many times a piece of clothing is returned because it didn’t fit the customer the way he/she expected (or was the wrong size).

Because online shopping (usually) requires a payment before the delivery of the actual product, it can cause inconvenience for a lot of customers – especially when the product they received didn’t match their expectations. To reduce the risk for customers and encourage online shopping, the retail industry decided to implement return policies to ensure that clients can get their money back if they weren’t satisfied with the purchase.

Therefore, requesting a refund is a voluntary act initiated by the customer within the time frame stipulated in the return policy (it depends on the merchant, but usually within 14-30 days).

Credit Card Chargeback Merchant Rights

Unfortunately, companies do not have many protections when it comes to fighting against chargebacks. Even if your store has a ‘no refund’ policy, the Fair Credit Billing Act allows consumers to file chargebacks. Despite that, it is advised that business owners clearly display their policies and make consumers aware of their sales rules. This may become relevant if a chargeback ever goes through an arbitration process, and generally helps with the above process of fighting against chargebacks.

By most accounts, banks tend to favour the cardholder over the business owner in most chargeback disputes. This is why it’s important for merchants to do everything in their power to have purchases and transactions well documented, and in strict accordance with the rules set forth by the card networks.

Trust Kryptova to Establish Your Merchant Services! Kryptova can get you the merchant services your business needs. At Kryptova, we can help you choose the right merchant service provider. With the right merchant account, your business will thrive and get the most out of our services. In as little as 48 hours, Kryptova can present you with a number of merchant accounts to choose from. Additionally, we provide the most competitive rates without compromising quality or security.

[harshitkryptova]

What is a payment gateway license and how does it work?

An overview on payment gateway license:-

As we all are aware of the fact that popularity of online shopping in the world has increased immensely due to the benefits of ease and flexibility offered by this platform. The term Payment Gateway denotes a financial service that is provided by way of an e-commerce application service provider. However, to start a Payment Gateway service, one needs to obtain Payment Gateway License from the license authority.

Concept of payment gateway:-

The term Payment Gateway means an intermediary, which works between the website that facilitates communication concerning transaction and the banks. That means it generates information from the respective buyer bank and supplies the same transaction information to the receiving bank, after that it notes the feedback as to whether the said transaction has been duly approved or declined.

Benefits of Obtaining Payment Gateway License:-

PCI — DSS Wallet

The PCI — DSS Wallet compliance provides security to the users of the application by securing their personal data in the portal or gateway for recurring payments.For example, an individual who is a regular customer on the Amazon Application can save his/ her bank account details on it or on its official website, and the gateway safeguards the same from every sort of cyber security threat.

White Label Wallet

It shall be noted that some of the payment gateways permit customers to make digital transactions from the mobile wallet applications. It is the latest trend, as it allows the users to carry all their operations and transactions from one place.Further, one can easily transfer the amount from the bank account to his/ her mobile wallet application, and can then use the same for making payments on other mobile applications or websites.

Fraud Screening Tools

Some of the payment gateways gives their customer the benefit of FST (Fraud Screening Tools) for the purpose of reducing the risk of losing personal data.The term Fraud Screening Tools comprises of the CCV (Card Code Value), AVS (Address Verification Service), and CVV (Card Verification Value).Further, it shall be noted that the primary objective of these tools is to confirm that there is no fraudulent transaction going on.

Also, another significant benefit of a payment gateway is that it permits transactions and dealings from multiple users that, too at the same time. This itself makes the same feasible for a customer to buy or sell goods & services whenever he or she wants.

How Does a Payment Gateway Operate?

Once a customer has placed his/ her order from an online website, then, there are a series of operations that are carried out by the Payment Gateway which are explained as follows:

Encryption

In the first step, the browser used by the user encrypts the information that has to be sent to the respective vendor’s server. After that, the payment gateway then transmits the transaction data to the specified payment processor.

Request For Authorisation

Once the data is successfully received by the payment processor, it then transmits the same to the respective card association.

Further, the Bank that has issued the payment card checks the transaction at this point and then denies or agrees it, accordingly.

Filing Of The Order

If the respective bank agrees to the transaction made, then, the authorization concerning to the customer and the merchant is further forwarded to the main processor of the Payment Gateway.

Once the response from the main processor is duly received, the same is further transmitted to the portal for the processing of the payment.

In this way the information and data is interpreted and the payment is made. The entire procedure of making payment takes around a time of a few seconds.

Additional Facilities Offered by Payment Gateways

Besides providing the facility of quick payments, the additional facilities offered by Payment Gateways are as follows:

Delivery Address Verification;

Advanced Visual System Checks;

Computer Finger Printing Technology;

Velocity Pattern Analysis;

Identity Morphing Detection;

Calculation of the Tax for Authorization of Request forwarded to the respective Processor;

Major Components of Payment Gateway

The major components of a Payment Gateway are as follows:

Merchant Agreement

The term Merchant Agreement denotes a contract between the business and the respective payment service provider. Further, each of the party that is engaged in the online transactions is directed by the prescribed roles, responsibilities and the rules that have been specified under this agreement, in relation to the acceptance of payment, authorisation, processing & settlement.

Secured Electronic Transaction

The Secured Electronic Transactions (SET) are provided by the main payment providers of the electronic transactions, such as Visa and MasterCard.

Further, the customers that are protected through SET, as the same allows the merchants to cross check the payment information, that, too, without actually seeing it. Also, the information and details mentioned on the card is straightaway received by the card issuer for the purpose of verification.

Basic Requirements of Payment Gateway License

The basic requirements of Payment Gateway License:-

The said entity or company must be incorporated under the provisions of the Companies Act 2013 or the Companies Act 1956;

A Minimum of 2 Members;

A Minimum of 2 Directors;

Address Proof of the Business;

5 years Business Plan;

PAN of the Company;

Current Bank Account details of the Company;

System Flow & Code Testing Report by the Software Certifying Agency;

Service Tax Registration Number;

Compliance with the PCI DSS;

Capital Requirements of Payment Gateway License

The capital requirements of Payment Gateway License in India are as follows:

It shall be noted that only the Non Banking Financial Companies (NBFCs) and the schedule banks need to comply with the Capital Adequacy Requirements prescribed by the Reserve Bank of India. Also, only these will be permitted to issue the prepaid payment instruments;

All the entities that are authorized under the provisions of the Foreign Exchange Management Act 1999 (FEMA) to issue the foreign exchange PPI (Prepaid Payment Instrument) are relieved from the scope of RBI guidelines. Further, the use of such instruments will be restricted to the permissible current account dealing and transactions, and are subject to the prescribed restrictions under the provisions of the Foreign Exchange Management (Current Account Transactions) Rules 2000, as amended from time to time;

Documents Needed for Payment Gateway License:-

The documents needed for obtaining Payment Gateway License in India are as follows:

A copy of the issued Certificate of Incorporation (COI) to the Company by the Registrar of Companies (ROC);

Details of PAN Card of the Directors;

Address Proof of the Directors;

Digital Signature Certificate (DSC) of the Directors;

Director Identification Number (DIN) of the Directors;

Registered Office’s Address Proof;

Comprehensive Details of the Company’s Current Bank Account;

Business Plan of the Company for the Next Five Financial Years;

Report regarding the Testing Code by a Software Agency;

Registration Procedure for Obtaining Payment Gateway License :-

The steps involved in the Registration Procedure for obtaining Payment Gateway License in India are as follows:

File Application For Registration

In the first step, the applicant needs to file an application for authorisation in the prescribed Form A. The same is done based on the provisions of section 5(1) of the PSS Act.

Further, the said application will be made to the “Chief General Manager” of the “Department of Payment & Settlement Systems” at the Central Offices of the Reserve Bank of India at Mumbai, or at other offices of the RBI, as may be prescribed by it from time to time.

Compliance Of Conditions For Authorization

The Reserve Bank of India will take the conditions as follows into the account prior to issuing the authorization:

a) The necessity for the proposal payment mechanism or the services that have been declared to be undertaken by it;

b) All the technical standards that have been decided for the payment mechanism or the structure of the decided payment system;

c) The terms and conditions, inclusive of the security procedure, for the operation of the proposed payment system;

d) The method in which the assignment is done in the provided payment system;

e) The manner or the way for getting of payment instructions that will affect the payment conditions under the payment system;

f) The overall management’s financial status, experience, and the integrity of the applicant;

g) The terms & conditions that govern and regulate the relationship of the customers with the respective payment providers;

h) The credit & monetary policies;

i) Time frame for authorization;

Issuance Of Authorization Certificate

If the Reserve Bank of India (RBI) is satisfied that all the requirements laid down in section 7(1) are duly fulfilled, it may issue the Authorization Certificate in Form ‘B’ for commencing and carrying on a payment system to the applicant. Further, the authorization will take effect from the date as mentioned by the RBI and as per the conditions that have been imposed by the RBI.

Authorization Within 6 Months

Based on the provision of section 4 of the Payment and Settlement System Act 2007, the Reserve Bank of India is needed to process the application filed for authorization at the earliest, with a maximum time frame of six months, starting from the date on which the said application for the authorization has been filed.

IT Requirements for Obtaining Payment Gateway License:-

The different IT Requirements for obtaining Payment Gateway License in India are as follows:

Information Security Governance;

Data Security Standards;

Security Incident Reporting;

Merchant On-boarding;

Cyber Security Audit & Reports;

Staff Competency;

Vendor Risk Assessment;

Maturity & Roadmap;

Cryptographic Requirement;

Data Sovereignty;

Data Security in Outsourcing;

Payment Application Security;

If you are looking for a Merchant Account to accept Cryptocurrency/Card Payments, it’s well worth opening an account with a crypto payment gateway website. It will make the process much easier if you want to add that option to your transactions. Book your demo today on Kryptova.

[harshitkryptova]

What is SEPA and SWIFT?

SEPA and SWIFT are the most widely used international payment systems in the world. They aim to make money transfers seamless, secure, and reliable to individuals and businesses and improve the integrity of an ever-changing system of payments. You might be a little unfamiliar with financial terminology and wonder what these transfers are.Now, let’s get started.What is SEPA?SEPA stands for Single Europe Payments Area. Almost all banks implemented it within the EU and Schengen Areas after 2008. This payment transfer allows people and businesses to send money in euros across Europe as quickly as they would in their country of origin.Banks must credit the entire amount to the recipient’s account when a payment is made in SEPA between European organizations. SEPA also allows for fast payments. The transaction can be completed in less than one day after processing the document. SEPA will enable banks to make international payments between individuals and businesses in Europe. The European Payment Council coordinated its implementation. The introduction of SEPA meant that there were no differences in payments in euros between domestic and international.34 European countries are currently making SEPA payments. This includes the European Free Trade Association, Norway, Iceland, Liechtenstein, and Switzerland, all of which are members of the Schengen Area. They all share the same goal: to harmonize electronic euro payments and provide simplicity, cost-effectiveness, and convenience for consumers and businesses.How Does SEPA Work?SEPA transactions are processed on the same terms and conditions as local transactions. This is unlike SWIFT transfers. SEPA transfers are usually processed in a matter of days. However, the SCT Inst scheme is quickly growing. SEPA transfers can be processed in just 10 seconds or less.You only need to have a Euro account and the IBAN of the recipient’s bank account to send a SEPA Transfer. Conversion rates are not necessary. You can also forget about the transfer commission. Payments will be processed in 10 seconds if both your banks’ institutions are connected to SCT Inst automatically.What is SWIFT?SWIFT stands for Society for Worldwide InterBank Financial Telecommunications and is the most secure global messaging system that banks and other financial institutions use to communicate. It is used to transmit information like amount, IBAN, and bank code, and financial messages worldwide about payments and transactions. SWIFT is known for its strong security standards and high protection of transactions.Every bank that uses the SWIFT payment system has its own unique code. The money is sent to an individual’s or legal entity directly when it is transferred. No matter the currency used to send the payment, the sender can choose the currency they wish to use. The money transfer between bank accounts is quick and accurate since there are over 11,000 financial institutions (mostly banks) in the SWIFT network. International payments made using the SWIFT network have the greatest advantage: they are available anywhere in the world. The SWIFT system also uses correspondent banks that, while not directly connected, work with it.How Does SWIFT Work?You will need the IBAN or BIC of the recipient party for SWIFT money transfer. These are the account numbers and codes of the SWIFT bank. The transfer can be sent in any currency and converted automatically. You have complete control over the rates of conversion. For example, if you send money from Poland to Canada via SWIFT transfers, you can select Moldovan Leu as your currency. The transfer will either be converted at reception or converted to Canadian dollars before sending. It is possible to send the money in US dollars, but it will be converted twice (and you will be charged for conversion).SWIFT transfers can be simple but may take a few days to process. Depending on your country, the average commission you would have to pay for the transfer could be $50.What Are the Similarities Between SEPA and SWIFT Transfers?SEPA and SWIFT payments look very similar from the

perspective of the EU’s average user. Both require an account to send money from, and almost all essential information of the recipient party must be provided. They are both secure regardless of whether you send them with your smartphone app or in the bank.These differences can arise when one sends an international transfer to non-EU countries. In this case, the process would work the same as for other non-EU countries.What’s the Difference Between SEPA and SWIFT Payment?The SEPA payment system, which EU legislators created, can only be used within Europe. Money cannot be sent outside the SEPA region in euros. The recipient’s account number must also be in IBAN format, and the fees should be split between the beneficiary and the sender. The document processing in SEPA payments takes less than one day, making the whole process very quick.The SWIFT system allows money transfers to be made internationally because it works globally. SWIFT payments can be made to any bank in any country supporting the SWIFT service. You can execute SWIFT payments in all currencies. The beneficiary and the recipient can decide whether the charges will be paid jointly or individually. SWIFT payments can include both IBANs and account numbers. The value date for a SWIFT transaction depends on the currency used and where it is sent.What is the Cost of SEPA and SWIFT?SEPA transfers are free, and banks pay any costs as part of their monthly service fees. The monthly payment is only 50 cents. SWIFT can charge the payer anywhere from 3 to 4 percent of the total amount. It also includes currency conversions and administrative costs. It can cost up to 30 EUR per transfer in real money. The charges vary from bank to bank and depend on which currency. Sometimes, the sender bank, as well as the receiver bank, might charge the recipient. Both receivers and senders need to be aware of the fees that they may incur.ConclusionIf you want to make payment within Europe, SEPA is best for you. But if you want to transfer money internationally, SWIFT will be a more convenient option. So, choose the one that works best for you.If you are looking for a Merchant Account to accept Cryptocurrency Payments, it’s well worth opening an account with a crypto payment gateway website. It will make the process much easier if you want to add that option to your transactions. Book your demo today on Kryptova.