Neeraj Singh

  Image Courtesy:https://paytechlaw.com/ Recap, from the previous article: Use Case #1. Neeraj used his AXIS Bank Credit Card at Big Bazar for INR 100. The Transaction gets authorized and Neeraj received the Product or Service. #2. Issuer deducts the INR 100 from the credit limit, subtracts INR 2 as Interchange Fee and transfer the INR 98 to the Mastercard. From this INR 2, some part goes to the Mastercard, and some are retained by the Issuing Bank as per agreement. #3. Mastercard transfers this INR 98 to the Big Bazar’s Bank i.e., HDFC Bank. #4. The HDFC Bank deduct the MDR of INR 0.50 and transfers the INR 97.50 to the Merchant’s Bank Account.  What will happen if Neeraj claims that he has not received the Product or Service for which he has paid INR 100 to the Big Bazar. We will see this in the next article of Chargeback Lifecycle. ----------------------------------------------------------------------------------------------------------------------------  Now let u

  Image Courtesy:https://paytechlaw.com/ In my previous article, I have explained Step 1 i.e., Authorization. In this article, I am going to explain Step 2 – Batching, Step 3 – Clearing, Step 4 – Settlement. The Authorization process does not complete the transaction. After Authorization, the Merchant must request formally its Bank ( Acquiring Bank, the Bank that has provided the POS Machine to the Merchant ) to cover the fund for the sale. Now let us understand the further process. Step 2: Batching – In general words, the shopkeeper asks his bank that the POS Machine provided by you has x number of Authorized transaction and now you fund me for those. #1. The merchant stores all the day’s authorized sales in a batch. #2. The merchant sends this batch to the Acquirer to receive payments. The batch can be sent many times as per the agreement between Merchant and Acquiring Bank. Generally, it takes place at the end of Business Day.  Step 3: Clearing #1. The Acquirer Bank distr

  Image Courtesy:https://paytechlaw.com/ Card Payments is a very vast domain and covering it through a blog becomes more challenging. This blog aims to give a high-level understanding of Card Payments in the most structured and organized way. Today world is moving at a great pace and hence stress would be laid in bestowing benefits to almost all groups influenced by Card Payments under professional and domestic growth. The topic will focus gradually on exploring the functionality and the mechanism behind this one of the most used methods of the payment system.   Participants Acquirer An Acquirer is a financial institution that processes transactions on behalf of a merchant. It holds the merchant's bank account and facilitates the acceptance of payment cards. Merchant A merchant refers to a business, either physical (Card Present) or online (Card Not Present), where a customer makes a purchase using a card issued by a financial institution (Issuer). The Point of Sale (POS) terminal

  UPI Payments is a very vast domain and covering it through a blog becomes more challenging. This blog aims to give a high-level understanding of UPI Payments in the most structured and organized way. Today world is digitizing at a great pace and hence stress would be laid in bestowing benefits to almost all groups influenced by digital Payments under professional and domestic growth. The topic will focus gradually on exploring the functionality and the mechanism behind this one of the simplest yet secured payment system.   Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties bank accounts. Source : https://www.npci.org.in/ Abbreviations PSP - Payment Service Provider VPA - Virtual Payment Address P2P - Person to Person P2M - Person to Merchant UPI as Four Party Model - Collect Col

  UPI Payments is a very vast domain and covering it through a blog becomes more challenging. The objective of this blog is to give a high-level understanding of UPI Payments in a most structured and organized way. Today world is digitizing at a great pace and hence stress would be laid in bestowing benefits to almost all groups influenced by digital Payments under professional and domestic growth. The topic will focus gradually on exploring the functionality and the mechanism behind this one of the simplest yet secured payment system.   Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties bank accounts. Source : https://www.npci.org.in/ Abbreviations PSP - Payment Service Provider VPA - Virtual Payment Address P2P - Person to Person P2M -