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6
Business
Industry andmarket overview
36
Worldline
2016 Registration Document
the commercial acquirer would then pay the merchant
●
€
99.40 pursuant to terms of their contractual
arrangements:
fee which might, in the present scenario, amount to € 0.25.
The merchant would therefore receive an amount of
€
99.40 from the commercial acquirer (in the event the
commercial acquirer has outsourced Acquiring Processing
services, it would pay approximately €
0.04 per
transaction to the provider of such services, which would
be deducted from the merchant service charge),
in most instances, the commercial acquirer pays the
●
merchant within 24 to 48 hours, having deducted from the
principal transaction amount a charge comprising the
€
0.30 interchange fee deducted by the issuing bank, the
€
0.05 card scheme processing fee and its own acquiring
some cases, the merchant receives the full €
100 from its
commercial acquirer and receives a bill at the end of the
month for the merchant service charge; this is known as
the “interchange ++” payment method (generally limited to
large-volume customers). In other cases, the commercial
acquirer only pays the merchant several days after the
transaction (generally for higher-risk transactions);
various alternative payment arrangements exist between
●
commercial acquirers and merchants, depending on the
particular terms of their contractual arrangements. In
the card scheme would send a bill to the commercial
●
acquirer for its card scheme processing fees (in the current
example, € 0.05 per transaction), on a monthly basis.
The example given is based on a typical card transaction,
however, there are other payment methods. For example,
another common non-cash payment method in many countries
in Europe, particularly in Germany, is payment via direct debit
and credit transfer from a consumer’s bank account. As in the
card example, many banks also choose to outsource the
processing of these payments to third party processors such as
Worldline.
Non-card-based payments
payments) that are increasingly popular. Such methods include:
There are a variety of non-card based payments (alternative
Sepa Credit Transfer;
●
Sepa Direct Debit;
●
Instant Payment;
●
Account Initiated Payment;
●
Online Banking e-payments (OBeP).
●
Other services in and around the
6.2.1.2
payment value chain
above, the payment services ecosystem also includes a series of
“extended” stand-alone or value-added services to traditional
merchants and banks designed to help them grow their
businesses and generate additional payment transactions. Such
services include but are not limited to the following:
In addition to the core payment processing services described
Services for Traditional Merchants
to provide cross channel sales experiences that allow
consumers to seamlessly transition between a retailer’s
physical, online and mobile stores. These services may
include solutions such as electronic engagement wallet
services to capture and leverage consumer data and digital
signage and other solutions that bring aspects of the online
commerce experience into the retailer’s physical store
environment;
Omni-commerce
Services.
Omni-commerce service
●
providers assist retailers in designing, implementing and
enhancing online and mobile services and integrating them
Loyalty Program Services.
Loyalty programs help retailers
●
build customer relationships and reward customers for their
loyalty, and provide retailers with valuable insights and sales
promotion opportunities by leveraging data about customer
behavior gathered through the program. In most cases,
these programs are based on loyalty cards tied to a specific
brand. To help implement these programs and leverage
loyalty program data, merchants often turn to outside
service providers for assistance in enrolling customers,
tracking purchases, analyzing the resulting data and
assisting with sales promotion;
payment cards used by retailers to extend credit or provide
prepaid gift cards to their customers. The largest users of
these services are fuel retailers, department stores and
consumer electronics retailers. In general, these cards are
only accepted as a means of payment by the retailers that
have issued them. Many payment service processors that
offer issuer processing services also provide card issuing
and processing services to retailers.
Private Label Card Issuer Services.
Private label cards are
●
Value-Added Services for Banks
Digital Wallet Services.
Banks often turn to outside service
●
providers for assistance in designing, implementing and
running their electronic wallet systems, which allow for
online and mobile payments. Digital wallets, combined with
tokenization services, are increasingly a must-have service
offering for banks as they seek to respond to wallet-based
solutions offered by bank and non-bank competitors, and to
seize the customer engagement and targeted marketing
opportunities electronic wallets offer;
channels and all payment instruments. According to a study
by Ovum, investment in fraud will increase by 6.5% annually
in the period 2012-2020 (Ovum Payment Technology Spend
Forecast);
Fraud Detection and Prevention Services
. The detection
●
and prevention of fraud is an ongoing battle across all
Authentication Services.
Authentication service providers
●
offer banks solutions to provide more secure methods of
authenticating cardholders such as 3-D Secure or
biometrics;