Financial Transaction Processing

Financial Transaction Processing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide services such as credit card processing, electronic funds transfer, and check clearing. Major companies include Bread Financial (formerly Alliance Data Systems), Fiserv, Global Payments-owned Heartland Payment Systems, Mastercard, Visa, and Western Union (all based in the US), as well as Cielo (Brazil), Moneris (Canada), and UnionPay International (China).COMPETITIVE LANDSCAPE

Technology is transforming the financial transaction processing industry and consumers' interactions with money. The use of cash as a payment method is plummeting, although it remains the predominant form of payment for small purchases: Approximately 60% of in-person payments under $10 were made in cash, compared to 20% of in-person transactions for $25 or more, according to the Federal Reserve. By number, the growth rate of core noncash payments was 6.7 percent per year from 2015 to 2018, higher than the growth rate of 5.1 percent per year from 2012 to 2015. By value, the recent growth rate (3.8 percent per year) was slightly higher than the growth rate of the prior period (3.6 percent per year), according to the 2019 Federal Reserve Payments Study.PRODUCTS, OPERATIONS & TECHNOLOGY

Processors provide transaction services to banks that issue credit cards and to merchants that accept credit card payments. Merchant products include authorizing, capturing, and settling merchants’ credit and debit card transactions, and handling chargebacks. Chargebacks occur when a consumer disputes a charge and charges it back to the merchant. Processors also sell or lease point-of-sale...

Industry Overview
Quarterly Industry Update
Business Challenges
Business Trends
Industry Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Web Links and Acronyms

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