Payment Methods

Question 1

6 Major Payment Method Families

Answer 1

1. Cards
2. Wallets
3. Bank Debits
4. Bank Re-Directs
5. Bank Transfers
6. BNPL

Question 2

Direct Debit (Lastschrift)

Answer 2

A direct debit is a permission to pull

• An individual or entity provides a merchant with their banking details and permission to withdraw funds directly from their account under specified terms (monthly subscription, rent payments)

Question 3

Name of direct debit rail in the US

Answer 3

ACH

Question 4

SEPA Akronym

Answer 4

Single Euro Payments Area

• Direct debit rail

Question 5

SEPA - Risk & Reversibility

Answer 5

Direct debit transactions do not have an authentication layer, like 3DS or a CVV check

“Reversals can be hard to defend against”
- With SEPA a shopper can perform a chargeback and reverse the charge for 8 weeks after the transaction date and the merchant has no resource to dispute the chargeback beyond directly contacting the customer

Question 6

Is direct debit authorized in real time?

Answer 6

No

It can take a few days for a merchant to receive a response that the transaction is complete, and then often a few additional days for settlement of those funds

Question 7

Weakness of direct debit

Answer 7

• Payments take a few days to clear (or settle)
  
  • BACS in the UK is typically 5 days
  • SEPA in the EU is 3
• It can take a few days before a merchant knows that a payment has failed
• Fraud is also an issue with direct debit

Question 8

Open Invoice (Kauf auf Rechnung)

Answer 8

“Here a shopper checks out but is not charged until fourteen to twenty-eight days after their goods are delivered”

• It is a very buyer friendly way to pay
• Shoppers get to try what they have purchased and decide if they want to keep it or make returns, then are only charged for what they decide to keep

Question 9

NFC

Answer 9

Near field communication

It is a communication protocol that connects two electronic devices within 4 centimeters

Question 10

Push vs Pull Methods - Difference

Answer 10

Does the payee pull the funds, or does the payer push them?”

Does the customer send funds (push), or do they give the merchant/ seller their banking info to let them pull those funds

Question 11

Online Banking Methods

Answer 11

A way for a shopper to pay online with the funds in their bank account

A shopper initiates the payment from their bank account to a third party like a merchant - they push the funds

• These push methods are sometimes also referred to as bank redirect

Question 12

Apple Pay & Google Pay Basics

Answer 12

They wanted to support a way for users to store their card details on their phone

They wanted cardholders to be able to pay over tap using NFC technology rather than having to carry around and swipe a piece of plastic

Question 13

Do Bank Redirects Support Recurring Payments?

Answer 13

No.

But Stripe supports recurring for some methods by converting to direct debit

Question 14

Do Bank Redirects support chargebacks?

Answer 14

No

Question 15

Bank Redirects

Answer 15

Instead of entering their bank account information, customers are redirected to provide their online banking credentials to authorize the payment

Question 16

Click to Pay

Answer 16

Click to Pay is best described as a digital wallet for credit and debit cards

The solution is provided by the card schemes

Thanks to automatic recognition of the end device used, consumers can immediately access all their stored card in the checkout of an online store and complete the purchase quickly and with just a few clicks in most cases

Ideal for guest checkout

Question 17

In order to debit an account, you must:

Answer 17

• collect your customer’s name and bank account number in IBAN format
• Customers must accept a mandate that authorizes you to debit the account

Question 18

Wer steht hinter der Girocard?

Answer 18

Das nationale Debitkarten-System der deutschen Kreditwirtschaft

Question 19

Girocard - Kassenschnitt

Answer 19

Terminal schickt eine Datei mit allen Zahlvorgängen des Tages an den Acquirer

Question 20

Girocard - Zentrales Clearing

Answer 20

Acquirer sammelt sämtliche Zahlungen über Nacht auf einem Treuhandkonto ein, sodass Sie die EC-Zahlungen bzw. diese, die über eine Girocard erfolgt sind, in der Regel schon am nächsten Tag auf Ihrem Konto gutgeschrieben haben

Question 21

ELV Definition

Answer 21

Das elektronische Lastschriftverfahren, kurz ELV, ist eine Zahlungsmöglichkeit im Einzelhandel, bei der durch den Kunden per Unterschrift dem Händler eine Einzugsermächtigung erteilt wird

Question 22

Was wird für ELV benötigt?

Answer 22

Der Kunde benötigt hierfür eine gültige Bankkarte, deren Magnetstreifen ausgelesen wird, um den Lastschriftauftrag zu erstellen

Question 23

Ist ELV online oder offline?

Answer 23

Das Verfahren läuft offline ab und eine PIN-Eingabe ist nicht erforderlich

Question 24

Risiko ELV

Answer 24

Beim offline ELV-Verfahren wird mit der Unterschrift eine Lastschrift genehmigt. Dabei wird die Kontodeckung des Kunden jedoch nicht überprüft und die Zahlung dementsprechend nicht sofort fällig. Bei der EC-Zahlungmit PIN hingegen wird die ausreichende Deckung sofort überprüft und die Zahlung gegebenenfalls abgelehnt

Question 25

OLV Bedeutung

Answer 25

elektronische Lastschriftverfahren online

Question 26

OLV Prinzip

Answer 26

Hier werden die Kontodaten nach Eingabe mit bundesweiten Sperrlisten und Scoring-Parametern abgeglichen

Question 27

SoftPOS

Answer 27

A SoftPOS payment facility converts a consumer device into a secure payment terminal and enables acceptance of EMV contactless cards