Video instructions and help with filling out and completing How Form 8815 Payments

Instructions and Help about How Form 8815 Payments

Hello everyone and welcome to our first whiteboard session here Arjuna payments we really pride ourselves on working with our customers to help them understand card payments and make sure that we are there to best help you grow your business this is the first in a series of conversations where we're going to share with you some of our knowledge about the card payments industry we try to do everything we can to make payments as simple as possible but it's important that you understand what's going on behind the scenes so you can structure some of your business processes in the right way to take advantage of what we offer you of course when we go through here today is only an introduction and we're always here to help give us a call drop us an email we'll come visit you we'll talk to you over the phone and we'll help make payments as simple as it can be the first thing we want to talk to you about is all of the complicated players that exist within making a card payment and most of this you don't need to think about but it gets confusing and sometimes we get a lot of questions around who actually is involved in the card transaction so I want to walk you through a simple process and then we'll talk about a few different types of transactions and how those change the process so behind me on the board I've got a simple diagram that shows the folks who are involved in a card payment first and most importantly we have your customer and your customer is carrying some sort of a credit card in their wallet or maybe in their brain if they memorize the number they're the ones who are saying I'm going to provide money for this good or service and I'm you going to use a credit card to initiate that payment from the consumer you have the merchant and so in this case we've drawn a picture of a taxi it's just because it's easier to draw than what most of our customers sell and the taxi merchant is the driver or the taxi company and they need to accept payment for the good or service they're delivering in order to accept payments the merchant needs to be signed up with Visa and MasterCard which are commonly called the card schemes these are networks that connect thousands and thousands or millions actually a card holders with millions of around the world and help us move around different environments and different geographies and use the same cards to pay they aren't actually holding any of the funds all they do is provide the communication infrastructure between various parties so back to that merchant who's got that relationship with Visa and MasterCard in order to do that they have to go through what's called an acquiring Bank an acquiring bank is someone who takes responsibility for the merchant to be able to accept card payments we'll come back to that in a little in a minute for all intents and purpose judo is the acquiring bank when we work with our customers and I'll talk about in a few seconds with different types of transactions there's actually a few folks who are often involved here over back to the customer side of the cardholder side of the equation they've been issued this card by what's called an issuing bank so this is the bank that's saying I'm going to take responsibility for the credit or credit worthiness of this cardholder and when they present their card for payment I'm going to make sure that that those funds are guaranteed back to you again this is all done through Visa MasterCard and the scheme's as they're known so let's take an example of a transaction that goes through and show how the flow of information and then funds goes through these different parties so step one the customer takes out their card and they begin to process a payment and we're going to leave aside for now whether that's a card present payment so that the chip-and-pin here in the UK and most of the world outside North America or if it's what's called the card-not-present payment which is primarily if not exclusively what judo does and we do that through m-commerce and other folks do that through e-commerce but again for now let's simplify and they somehow presented their information to pay that information goes to the acquiring bank the acquiring bank receives that information and immediately passes it through to Visa and MasterCard who pass it on the issuing bank at that point the issuing bank says is there enough credit in this person's account was the card stolen and do I feel comfortable with this transaction you know maybe it's occurring in Dubai and my customer my cardholder has never been to Dubai so I don't think they're there right now you've probably had this happen to you when you travel I'm sure they'll respond with a message that says yes they have enough money no the card has not been stolen and yes we guarantee that we're going to provide these funds Visa MasterCard then go and grab that message back to the acquiring bank and that acquiring bank routes the message back to the cardholder cardholder through some sort of an interface and again we'll come back to this in a second of what that interface can be so this is just bits and bytes on data passing through and telling us whether or not a card or transaction can take place at the end of the day this transaction is settled and that means the issuing bank is going to take the funds that were paid and get them to the acquiring bank this is all done in batch transactions and done overnight it's things that you probably don't need to worry