Timeline of Major Events in Payment Processing
As we learned in payment processing, electronic money has a long and varied history. From Western Union’s advances in the late 1800’s to the release of the Google Wallet in 2011, the world has seen vast changes in the way that commerce is conducted on both a local and global scale. With advances in mobile technology and the continued prevalence of the internet, there is no limit to where payment processing can go in the next 140 years. Timeline of Major Events in Payment Processing 1871 – Western Union introduces money transfer 1914 – Western Union introduces first charge card 1918 – Federal reserve banks begin to move currency via telegraph 1939 – Concept of automatic teller machine created 1950 – Dinners club releases first plastic card limited to 27 restaurants in NYC 1958 – Bank of America realease the BankAmericard 1964 – IBM & American Airlines develop online reservation process 1968 – Modern ATM conceptualized 1973 – First ATM installed into the Chemical Bank in NYC 1979 – Michael Aldrich developed predecscorr to online shopping 1981 – Thomson Holidays, UK is first B2B online shopping 1982 – Minitel was introduced nationwide in France and used for online ordering. 1985 – Nissan UK sells cars and finance with credit checking online from dealers’ lots 1986 – Discover Card is unveiled at the Super Bowl 1989 – Visa adds electronic signature capability 1990 – Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer. 1994 – Netscape is released promoting online ordering and the needed for SSL encryption 1995 – Amazon.com launched by Jeff Bezos 1998 – PayPal and the idea of the eWallet developed 2000 – Dot.com bust 2002 – eBay acquires PayPal for $1.5 billion 2004 – Antitrust court ruling against Visa and MasterCard initiated 2006 – The Payment Card Industry Security Standards Council is formed 2008 – Groupon redefines how customers shop for discounts 2010 – Durbin Amendment introduced; aimed to reform credit / debit card fees 2011 – Google releases Google Wallet If we have missed any major milestones you feel should be added, please let us know by leaving it in the comments section below…...
Read MoreResponding to Changing Market Needs
With an ever changing world of technology and commodities, how does a company stay the course and continue to develop the right solutions for its customers? One answer can be found in Peter Senge’s book The Fifth Discipline. He argues that only those organizations [learning organizations] that are able to adapt quickly and effectively will be able to excel in their field or market. Another potential answer can be found in Charles Fine’s Clockspeed. Fine notes that companies and individuals must simultaneously exploit their current capabilities while consciously and purposefully building new ones for the inevitable moment when the old ones no longer provide a competitive advantage. Rather you run an establish business, are developing a start-up company or are an individual employee; this principle applies. With the internet boom of the last decade information moves must faster and thus so does everything else. We have moved from industry to information and from inventory to internet business. Gone are the days when companies dominate their market for decades, and these shifts have impacted industries and individuals alike. Through all the chaos, bubbles bursting and a down economy, how does an individual create security? How does a business carve our market share and sustainable revenue? Although having a big bundle of cash would ease some worries, we believe that security is truly attained by developing abilities. The way to do this is by strongly pursuing excellence in the chosen field, learning from the experts and continually going through the business development process. It does not happen on accident but takes years of hard work to achieve . “We are what we repeatedly do. Excellence, then is not an act, but a habit.” ~ Aristotle...
Read MoreCard Payment Basics
In today’s marketplace, merchants are faced with a complex set of terminology and conflicting information when they look to set-up their payment processing options. In addition the payment card industry as well as the federal government are constantly changing rules and regulations when it comes to taking payment. From the most complex integrated solution to a single stand alone POS terminal, all card payments follow the same simple steps. How a Payment Card Transaction Works: A cardholder purchases goods or services from a merchant. The merchant sends the transaction information to an Acquirer (Merchant Bank) and is reimbursed for the sale less a discount rate. The Acquirer submits the transaction to the Issuing Bank for payment by either the MasterCard or Visa settlement system. The Issuer pays the Acquirer for the purchase through the settlement system The cardholder repays the Issuer for the goods or services originally purchased from the merchant. Below illustrates the process flow of a typical credit card transaction Merchants, large and small, established and brand new, benefit from accepting payment cards and telling their customers about it: Increased Sales – Customers spend more when they have options besides cash. An old truism says that the more ways you give a customer to pay, the more money you make. Customers paying with payment cards typically spend more. And the cost of accepting card payments is paid for and increases profit by the increase in gross sales. In other words, your business will enjoy higher average tickets and additional purchases that might not otherwise have been made. Customer Satisfaction Today’s customers demand the flexibility to pay How Where When they want. Electronic transactions save you time and money by… Automating manual store procedures Speeding checkout lines Providing better customer service Increasing cash flow Offering higher profits Whether it’s by debit or credit card or a specialty product, happy customers will be loyal customers. Safety and Slippage Electronic payments keep cash-on-hand at a minimum and reduce the opportunity for clerical mistakes and pilfering....
Read MoreKatie: Orange Patch Too – Mesa, AZ
“We were with our local bank for credit card processing for over 20 years and were reluctant to speak with anyone about it. We were referred to Total Merchant Network by a friend of ours and they were cordial and helpful in identifying ways to help reduce costs and improve efficiency in our payment process. We compared statements once we were switched over and they are saving us a lot of money now. On top of this they are helping design a point of sale and eCommerce solution that will help modernize or business practices. “ Orange Patch Too is a historical retail landmark in Mesa Arizona, serving the east valley for many years. The offer citrus, food as well as boutique items. Check them out at...
Read MoreJosh: Northwest Mattress Outlet – Sherwood, OR
“Total Merchant Network has helped with many aspects that impact my business. From setting up my payment processing, providing operational advice to helping with key solutions for my online presence, the value is completely immeasurable. I look forward to a long future working with these guys as a key partner.” Soul Mate’s Furniture Store is an online discount retailer of furniture for every part of the home, inside and out. Check them out online at...
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