The Key Players Involved In Credit Card Processing

Accepting payments almost certainly means processing credit cards. But how much do you know about the process after your customer clicks the ‘pay’ button? The payment is routed through many systems in the milliseconds that follow. If it is successful, the customer can go about their business, but if it isn’t, it can be frustrating for everybody.

The more you know about credit card processing, the more control you have over its outcome.

Key Players


A bank cardholder obtains a credit or debit card from a card issuing bank. They then present the card to a merchant to pay for goods or services.

Issuing Bank (Cardholder Bank)

An issuing bank issues credit cards to consumers. The issuing bank is also a member of payment card associations such as Visa and MasterCard card. They transfer funds to the acquiring banks for purchases that their cardholders make. Afterwards, the cardholder is responsible for repaying their issuing bank according to the agreement they signed.

Card Associations (Visa and MasterCard)

Visa and MasterCard aren’t banks. Instead, they function as the governing body of a community of financial institutions, ISOs and MSPs that work together in association to support credit card processing and electronic payments.


Merchants are businesses that maintain merchant accounts that allow customers to pay them with credit or debit cards for goods or services provided.

Acquiring Bank (Merchant’s Bank)

Often referred to as a merchant bank, acquiring banks contract with merchants to create and maintain accounts (called merchant accounts) that allow the business to accept credit and debit cards. Acquiring banks provide merchants with equipment and software necessary for accepting credit cards as well as handling customer service concerns regarding card acceptance. They also deposit funds from credit card sales into a merchant’s account.

To conduct and monitor the day-to-day activities of their merchant accounts, acquiring banks often enlist the help of third-party independent sales organizations (ISO) and membership service providers (MSP).

How Does Credit Card Processing Look In Motion?


  1. Cardholders present their cards (or other secure methods) to merchants in exchange for goods and services.
  2. An authorization request is sent to the payment processor by the merchant.
  3. The payment processor submits the transaction to the card association, eventually reaching the issuing bank.
  4. Authorization requests are sent to the issuing bank, which includes parameters such as CVV, AVS validation, and expiration date.
  5. The issuing bank approves or declines the transaction.
  6. Once the approval or denial status has been determined, the issuing bank forwards it to the card association, the merchant bank, and then to the merchant.

Settlement and Funding

  1. Batches of authorized transactions are sent by the merchant to the payment processor.
  2. Transaction details are passed to the card associations by the payment processor. They then communicate the appropriate debits with the issuing banks in their network.
  3. Cardholders have their accounts charged by the issuing bank for the amount of the transaction.
  4. The issuing bank then transfers the funds for the transaction to the merchant bank, minus interchange fees.
  5. Money is deposited into the merchant’s account by the merchant bank.
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5 Benefits of Using a Mobile Banking App

The development of mobile applications has transformed the way the banking industry operates today. A mobile banking app is good enough to offer important benefits such as:

  1. Access your bank accounts on a single platform

There are only a few banking apps that enable you to access multiple savings accounts on their platform, and manage them by transferring money from one account to another or making payments. The user-friendly tools on the app offer an option, which may be something similar to ‘transfers’. To link external bank accounts, you are required to add a new account by selecting the option and providing essential bank information. After the verification, you can have the link validated, and use it to access your account to make payments and check the balance.

  1. Manage your finance

An online banking app can help build trust by customizing services to the customers’ needs. It helps them with unique money-saving tools that can take care of their financial future. The ‘invest’ option offers you to make investments in mutual funds, either in equity funds or debt funds. It gives you a range of direct investment options like small-cap, mid-cap, large-cap, index, thematic and multi-cap equity funds. Other than the debt mutual funds, which include short-term, liquid, income and dynamic bond funds, you can also invest in hybrid mutual funds through a systematic investment plan (SIP).

The app also facilitates stock trading through a 3-in-1 account of savings, Demat and trading account. You can invest in currency, equity and commodities using this account. The other investment options are depositing your money in fixed or recurring account for a fixed interest rate.

  1. Make Bill Payments

One among the few easiest ways of making payments is through a mobile bank application. The adoption of QR codes for quick payments has led to its widespread usage by several people. With an online banking app, you can pay your credit card bills instantly by using a BHIM app or UPI-enabled app. You have to just enter the credit card details and the specific amount in the ‘Payments’ option, open the UPI-enabled app, scan the code and make the payment.

Making a bank credit card payment through the UPI QR code is highly secured and reliable for there is hardly any chance for error.

  1. Avail Instant Personal loans

Mobile applications have eased the personal loan process with minimal documentation. The option ‘Loans’ helps you to choose any types of loans from personal to motor vehicles, smart devices and household items. The application process is simple by providing personal details and uploading supporting documents. Instant personal loans are offered at a lower interest rate in a few hours, without any collateral security. However, you should have a good credit history.

  1. Quick and Timely Support

The use of mobile banking apps has helped improve customer relationships for most banks. The use of AI-powered chatbot in the app facilitates the user by having quick and timely assistance anytime. The smart features such as push notifications and alerts remind customers or bring to their notice unusual account activity or low balance, which trigger an action.

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Investment portfolio of a debt scheme doesn’t get affected by equity markets. Here’s why

There are several mutual fund types each of which have a unique investment objective and asset allocation strategy. Those who are new to mutual funds, they might find it quite tasking in choosing the right type of scheme. This why it is better to do some research and understand the qualities and features of all fund types before making an investment decision.

Most financial advisors recommend investors to make a financial plan. The very first and important step of financial planning is determining your life’s immediate as well as long term goals. Having a clear perspective might help investors with a clear investment objective. If you carry some risk appetite and do not mind investing your money in market linked schemes, you can consider investing in mutual funds. But not all mutual funds invest in the stock market and it is necessary for people to get this notion out of their thought.

If you wish to earn returns by investing in mutual funds but do not want to expose your finances to market volatility, you can consider adding debt funds to your investment portfolio.

What is a debt mutual funds?

Out of the many mutual fund categories, equity and debt funds are some of the most sought after investment avenues. While equity scheme invest majority of its investible corpus in equity and equity related instruments, debt funds are mutual funds that aim at generating capital appreciation by investing in fixed income securities. The debt fund manager builds a portfolio of fixed income securities that generally have a short maturity period. The investment objective of most debt fund is to offer stable returns with minimum investment risk.

Investment portfolio of a debt scheme doesn’t get affected by equity markets. Here’s why

Depending on the investment objective and asset allocation strategy, the underlying securities of a debt fund may vary. For example, a liquid fund invests in securities that mature within 91 days. A short term fund invests in fixed income securities and money market securities such that the duration of the fund portfolio is between 1 and 3 years. Some of the debt securities and money market instruments in which a debt fund invests are treasury bills, government bonds, commercial papers, debentures, GOI securities, cash, and cash equivalent etc.

Debt funds aren’t entirely risk free. Yes, it is true that the underlying securities that comprise of a debt fund portfolio doesn’t get affected by the fluctuations in the stock market. That is because debt funds do not invest in equity and equity related instruments. However, they do invest in fixed income securities and debt instruments that are prone to interest rate risk and credit risk. A debt fund which invests in AA- or other low credit rating bonds may get affected if the company isn’t able to repay credit on time. A spike in interest rates can affect the performance of debt instruments as well.

Debt funds are ideal for those who have an investment horizon of 12 to 24 months. Investors can either make a lump sum investment or start a monthly SIP in a debt scheme of their choice. Systematic Investment Plan (SIP) is the simplest way of investing a fixed sum at regular intervals in debt funds. SIPs are also ideal for anyone who wish to inculcate the discipline or systematic and regular investing. Retail investors can also refer to SIP calculator, a free online tool that let’s you determine the gains that you may receive at the end of your SIP investing journey.

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2 Tips to Start a Household Debt Management Plan

Household debt rose to a record-breaking $14.6 trillion during 2020, the first year of the pandemic. There were many reasons for this record, including consumers relying on their credit cards to live on after a job loss. But the main contributors were student debt and mortgage debt. Student debt only showed a small rise because of forbearance programs, but mortgage debt rose a staggering $10 trillion.

If you were one of the consumers who had to rely on their credit cards to make it through 2020, perhaps to make up for the shortfall in your income after an unexpected job loss, there’s good news.  Effective household debt management plans are available to pay off your debt completely this year. Besides paying off your debt completely this year, you could also improve your financial situation by learning how to invest your income and make it grow.

Tip #1: Restructure Your Debt

We live in a society where debt is almost inevitable because of the discrepancy between income and the rising cost of living. Unfortunately, it’s easy for debt, especially credit card debt, to get out of control, resulting in difficulty keeping up with monthly payments. When this happens, high interest rates force household debt to grow at an astronomical rate.

One great tip for bringing down your credit card debt to a zero balance is to get a debt consolidation loan. This type of loan, of course, does not eliminate your debt but transfers it to another creditor at a lower interest rate to make it easier to pay.

By consolidating debt through a loan from a lender like Hawkeye Associates, almost all the stress you experienced paying down your credit cards disappears. Payments suddenly become manageable.

Tip#2: Learn to Trade Stocks

Unlike many other types of investments, learning how to trade stocks is something that you can do through self-study because there are plenty of online resources available to teach you how to trade stocks.

There are limited hours in the day for you to trade your time for dollars. As an investor, you will put your money to work for you and end up earning far more than through unstinting hard work alone.

Here are some suggestions on how to learn to trade from scratch:

  • Open up a stock brokerage account to practice paper trading, a simple way to learn without risking any money. You will learn how to read technical indicators to understand how the market moves.
  • Read recommended books and articles written by famous stock traders. These will give you an understanding of how successful investors think.
  • Study the psychology of stock trading. How you feel about buying and selling stocks plays a significant role in decision-making.
  • Network with mentors and fellow students through social media channels and forums. You will learn from other people’s experiences and share your own.
  • Follow the stock market to get a good grasp of how the market works. Read news outlets that provide extensive stock market coverage.

Initially, use these resources to learn at your own pace, then, at a more advanced stage, consider paid subscriptions, going to live online classes, taking online courses, and attending live seminars.

In conclusion, 2020 may have been a difficult year for you, but there are many ways of rebooting your household finances this year, including using consolidation loans to pay off your debt and learning how to invest in stocks to earn money to supplement what you earn from your job.

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Benefits of a Digital Savings Bank Account

A Digital Savings Account is an online savings account that can help you avail banking facilities at the ease of your fingertips. It offers a wide range of benefits and can be opened online within minutes through a hassle-free process. With the help of a Digital Savings Account, you can get your bank account statement online, and avail banking services such as instant transfer, phone banking, SMS banking, etc. As a result of rapid digital transformation, having a Digital Savings Account has become the need of the hour. We are going to have a look at some other important benefits of a Digital Savings Account in this article.

Benefits of a Digital Savings Account

Easy online opening process

The Digital Savings Account can be opened through a seamless and quick online process. All you have to do is keep your PAN card and Aadhaar number handy and complete a few steps to open the Digital Savings Account online from the comfort of your home or office.

Earn interest

You will be able to earn interest on the balance in your Digital Savings Account. This will help you grow your money gradually with time.

Easy access

You can access your Digital Savings Account from your mobile or laptop easily. You can keep track of your transactions, check your balance, transfer funds online, pay utility bills, and enjoy online shopping with a Digital Savings Account.

Safe and secure transactions

Digital Savings Accounts have a robust security system. The two-factor authentication ensures that the account is only accessed by the account-holder. Thus, the transactions made through Digital Savings Account are completely safe and secure.

Unlimited free transfers

With a Digital Savings Account, you can enjoy the benefits of free transfers like RTGS, NEFT, and card payments.

Zero balance account

Most Digital Savings Accounts are also Zero Balance Savings Accounts. Thus, you won’t be charged for non-maintenance of the minimum average balance. You can use your money without having to worry about the minimum average balance requirement.

Investing made easier

A Digital Savings Account allows you to create a Fixed Deposit or Recurring Deposit within a matter of minutes. Moreover, you can also purchase and redeem Mutual Funds, and track your investments instantly using a Digital Savings Account.

All the above-mentioned benefits of a Digital Savings Account will surely make banking easier for you. You will be able to manage your finances efficiently with a Digital Savings Account. So why wait? Open a Digital Savings Account and enjoy the numerous banking facilities at the earliest. However, do not forget to check the credibility of the bank before opening a Digital Savings Account with it. This will help you make a well-informed decision. You can go through the existing customer reviews of the bank to get a better idea of the bank’s authenticity and credibility. Lastly, it’s advisable to settle for a bank that offers efficient customer service and round-the-clock assistance.

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5 things to know before you get a DTH connection

DTH only entered the Indian market a little over a decade ago, but it has managed to shift the norms of television viewing in the country in that period.

In today’s world, India has around 5 DTH operators, but with so many different deals on the market, even that is too much for a new DTH customer.

Things can get a little overwhelming with all the different payment partner choices that offer you a link at a discounted rate.

It’s best to do your homework before being enticed by tempting deals to get the most out of a DTH connection.

Below are five things you must know about a DTH connection in India.

  • Set-Top Box

The quality of channels you will be able to view is largely determined by your set-top box.

However, the type of set-top box you should choose is determined by the type of television you have.

Choose a Standard Definition box if you have a tube TV.

If your television supports 4k resolution, get a 4k DTH connection.

Choose a High Definition box if you have an LCD or LED TV.

Also, keep an eye on the warranty. Most operators give a warranty of one year on the set-top box itself.

  • To Buy or Rent?

If you need a connection for a short time or don’t want to deal with the hassle of buying and maintaining a set-top box, you can rent one from your operator. A few dth operators, such as Sun Direct DTH, have actively recognized this issue and offer more affordable options for renting out a box on both a long and short term basis. (1)

  • Packages, and their Pricing

The majority of people compare the initial cost of STB when deciding whether or not to purchase a DTH connection.

What you should think about are the two points listed below.

  • The package that includes all of the channels you want to watch.
  • The monthly cost of that package.

DTH operators offer basic packages starting at INR 99 and going up to INR 800.

Some operators, such as Sun Direct DTH, even provide basic plans for 49/month for 148 channels, and even free basic packages, that include all Sun channels. So, you can get the Sun Direct recharge done accordingly.

  • Services

 As a DTH subscriber, you will need customer service assistance regularly for issues ranging from account issues to set-top box realignment.

Nobody loves being on hold for hours, do they?

The best way to assess how good a service is to keep track of how quickly they respond to your inquiry.

  • Lastly, Payment

You can still pay each installment in cash the old-fashioned way. You can also your DTH recharge through reputable online platforms such as Airtel Payments Bank.

We’ve double-checked everything. Online payment is safe and convenient because you can get cash back’s and special deals for each transaction.

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All You Need To Know About Tax Accountants

If you are a student of commerce and are planning to move ahead with pursuing a course in accounting, you should learn about the duties of a tax accountant. There are several titles for the people working at the various posts of the finance departments. However, you need to choose yours according to your place of interest and by considering your skills and strengths.

So Let Us Find Out A Bit About The Tax Accountant And What Role They Play

Tax Accountants

They offer advice to their clients which can typically be an individual, government agency, private companies, or even a non-profit organization that are going through certain financial and tax-related issues. Birmingham tax accountants are extremely skilled persons who can prepare tax documents by following the most appropriate strategies for their clients.

What Are The Responsibilities Of A Tax Accountant?

·        Examine The Financial Statements

Before starting with the complete process of handling taxes, the tax accountants try getting a complete idea about the financial condition of the client. And further, they prepare the tax return documents accordingly. The tax accountants make it a point to give a read to all the statements which are related to the financial position of his client to confirm that those are made by following the tax laws and regulations. And also to make sure that it offers a complete view of his customer’s financial condition in the right way.

·        Create Budget Plans

One of the main roles which these tax accountants play is to suggest to their clients with ideas to cut down their daily expenditure and also to try to increase the income. They also do make their clients stick with a certain budget plan which reduces the rates of confusion related to the financial situation.

·        Organize Financial Records

The Birmingham accountants do not only take care of and prepare the tax return documents of their clients, but they also do help their clients to organize their economical records and statements. And that allows these individuals to store the clients’ info in separate files and use it at a time of emergency when you need to show any such document within short notice.


There are several sectors where these professionals opt to work. From the accounting department to the booking and payroll services industry, the tax accountants can easily change their job as the demand for their services is very high.

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Loan: Pros and cons

If you are battling to beat financial hardships and debt, you may consider getting financing, but there are plenty of different types of loans available that it could appear hard to decide which kind of loan works good for you. Each one has their very own pros and cons, so this is a quick rundown from the loans that are offered and many generally chosen and just what benefits they entail.

Guaranteed Loans: a guaranteed loan is only a loan that’s ‘secured’ against a good thing. This is whats called ‘collateral’ for that loan. In lots of scenarios, the house is utilized as collateral for any guaranteed loan.


Rates of interest for guaranteed loans are frequently lower because they are regarded as ‘low-risk’ through the loan provider.

You are able to borrow larger amounts.

Repayment from the loan could be disseminate over a longer time.


You’ll lose whatever can be used as collateral should you default upon loan instalments.

You can find a poor credit rating.

Short Term Loans: short term loans are loans that don’t require collateral.


Short term loans are lower risk for that customer as they’re not going to lose an invaluable asset when they have a problem with repayments.


Smaller sized amounts can be found and also the payment term is considerably shorter compared to guaranteed loans.

Defaulting or falling behind on repayments can lead to court judgements.

When the matter would go to court, they be capable of alter the loan to some guaranteed loan, producing a lack of assets to be able to pay back the borrowed funds.

Mortgage Loans: home loan is simply mortgages and are utilized to purchase a house over an long time.


Whenever your mortgage is compensated off entirely, you have your house.


Mortgages needed a first deposit that is ordinarily a specific number of the general value of the home.

If you can’t maintain mortgage repayments, your house might be repossessed.

Debt Consolidation Reduction Loans: this sort of loan can be used to ‘consolidate’ all your financial obligations into one, rather of getting separate financial obligations. Money provided to the customer is rather transferred straight to the creditors and also the financial obligations if paid back towards the new loan provider.


Debt consolidation reduction loans will help reduce repayments.

Payments are dispersed out more than a extended period of time.

Rates of interest are reduced


Longer payment term means more interest to pay for.

Pawnbroker Loans: much like a guaranteed loan, a pawnbroker loan is really a loan that needs an invaluable asset as collateral, but this is often just about any appropriate item of worth like jewellery, watches, antiques, coins and bullion or scrap gold.


No credit report checks are required to obtain a loan from the pawnbroker.

Obtaining a pawnbroker loan is frequently extremely fast.

You are able to borrow hardly any or borrow considerably more.

Pawnbrokers don’t require details about what you want to use the lent amount.

Online pawnbrokers like kingdom can provide two times just as much for the belongings as highstreet pawnbrokers.


You’ll lose your asset should you default on repayment following the term is finished or maybe extra time can’t be decided.

Rates of interest could be high with respect to the pawnbroker.

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Five Signs when you compare Equipment Financing Option

Because of so many different equipment financing options available from a variety of providers, it may become hard to tell which is the best for your company. Due to the considerable amounts of cash and also the products purchased being so pivotal for your company’s success, you won’t want to get it wrong. Listed here are five indications of a great equipment leasing option.

Easy Process

The gear financial institution needs to help you out to guarantee the entire equipment leasing process is positive and pretty simple. They have to opt for you thru each step making tips to make everything work much better. They ought to be prepared to negotiate to help you get the best offer. Request references to obtain a wise decision of the prospective leasing company’s history.

Honest And Open Experts

It doesn’t matter how great the gear financing option sounds, it will not make a great deal with no honest and open expert. She or he ought to be prepared to explain the various options along with you which help you choose which works well with your organization. They ought to be willing to get at know your company to allow them to understand what you’re searching for and just what your unique needs is going to be. Asset management plays a huge role for that equipment leasing expert.


No two companies are identical and also the equipment financing option selected must reflect that. It ought to be tailored to satisfy your particular needs regarding term length, income, and taxation. Because companies never stay, the gear leasing needs to maintain this.

You will be able to lower while increasing your instalments to complement the earnings of the business without getting the organization charge charges or penalties for doing this. This enables you to save cash when you are able and release income when it’s needed. Additionally, it shouldn’t secure your capitol and funds flow towards the extent it hinders what you can do to operate your organization.

Get The Tools Needed

The choice you train with has to permit you the liberty of buying the products you have to run your company efficiently. Otherwise, you’ll be taking a loss on productivity that frequently winds up being more costly than having to pay a rather greater interest rate to start with. A specialist agent inside your industry will frequently assist you to suit your must the products being purchased to alleviate the pressure of getting to create these decisions by yourself. This lowers the danger and enables you to definitely focus on business operations.

Undesirable Tools

Selling old products which have lost their effectiveness is really a time intensive and costly venture generally. The financial expert can frequently take care of this part for you personally. The different options are a shorter period coping with products that no more benefit your organization and take more time on things that do.

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Learn about the different types of deductibles in a car insurance policy

Before you take your car out for a spin, you need to have a car insurance policy ready. The Motor Vehicles Act, 1988 in India makes it mandatory for every vehicle owner to have an insurance cover (third-party liability) for them to be legally driving on Indian roads. With road accidents taking place on a daily basis, a car insurance policy will help provide the financial coverage you need.

Now when you are buying a four-wheeler insurance policy, you will come across a term known as “Deductible”. This is nothing but the amount that you would be paying as a policyholder while making a claim. Confused? Let us explain. Let us say you have incurred expenses amounting to a sum of Rs.5000 and the deductible in your car insurance policy is set at Rs.2000. This means that you would have to pay Rs.2000 from your own pocket and the insurance company will pay the remaining amount, which is Rs.3000.

There are two types of deductibles in a motor insurance policy:

  1. Compulsory deductible

This type of deductible is a fixed amount that is set by your insurance company in conformity with the Insurance Regulatory Development Authority of India (IRDAI) guidelines. A compulsory deductible is set after taking into account the engine capacity of your car. As per the Indian Motor Tariff, the standard compulsory deductible rate for private cars are as follows:

If the cubic capacity of the car’s engine is up to 1500CC – Rs.1000

If the cubic capacity of the car’s engine is above 1500CC – Rs.2000

If your car is older, it is quite possible for the insurance company to increase the deductible since it is more likely that you will make a claim. However, the compulsory deductible will not be affecting the premium in any way, be it a car or bike insurance policy.

  1. Voluntary deductible

As the name suggests, you can voluntarily opt for this type of deductible. The limit for the deductible would be chosen by you. A voluntary deductible would have an inversely proportional relationship to the premium of your car insurance policy. If you choose to set a high voluntary deductible as part of your insurance policy, the insurance company will offer you lower premiums.

Let us take a look at the differences between the two types of deductibles:

Compulsory deductible Voluntary deductible
Chosen by the insurer Chosen by the policyholder
Does not affect the premium Does affect the premium
Does not affect savings Helps in long-term savings
When a claim is made, only the compulsory deductible is payable When a claim is made, the compulsory as well as the voluntary deductible are payable

The option of a voluntary deductible is not a commonly preferred one. This is because at the time of making a claim the policyholder would have to pay both the compulsory deductible as well as the voluntary deductible, ultimately reducing the claim amount given by the insurance company. However, this again depends on the preference of each policyholder.

We hope that this article has helped you understand the 2 different types of deductibles in a car insurance policy. All the best!

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