Payments

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2025/01/Main-Banner-1-100.webp" alt="What is UPI circle?" title="" width="100%" height="253">Back in the day, grandparents would give us pocket money for our expenses, and our parents would carefully monitor every purchase, ensuring we spent wisely. Fast forward to today, imagine a system that empowers parents to oversee their children’s purchases with pre-set spending limits.That’s UPI Circle for you.Now, let’s consider another scenario. You’re an entrepreneur looking to grant your staff the flexibility to manage administrative expenses while maintaining oversight of the accounts.With the <a class="link" href="https://m2pfintech.com/blog/upi-the-driver-of-economic-growth-and-inclusion/">UPI</a> Circle feature, you can do just that.The possibilities are endless—these are just a couple of ways UPI Circle can transform how you manage and monitor expenses effortlessly.Let’s explore the transformative potential of UPI Circle, from its functionality and benefits to its impact on both banks and users. Before that, what’s <a class="link" href="https://www.linkedin.com/posts/m2pfintech_upi-circle-activity-7288514156675117056-TB6t?utm_source=share&amp;utm_medium=member_desktop">UPI circle</a> in its true essence.<h2 class="heading-node" id="uwaqfzxpv" style="text-align: left">What is UPI Circle?</h2>UPI Circle, introduced by NPCI, enhances digital payment accessibility by allowing primary users to add family members or friends as secondary users. The secondary users can make transactions using the primary user's bank account, within predefined limits. This feature is designed to offer UPI access to individuals who may not have their own bank accounts or are reluctant to use digital payments, making it easier for them to engage in the digital economy.<h2 class="heading-node" id="r5744lsd7" style="text-align: left">Why the UPI Circle Initiative?</h2>UPI Circle streamlines access to digital payments and simplifies the adoption of formal banking systems for millions of unbanked individuals. This innovation not only promotes financial literacy but also opens doors to new economic opportunities for underserved communities. UPI Circle’s impact goes far beyond convenience—it’s a catalyst for accelerating India’s financial inclusion<h2 class="heading-node" id="916qd0uz5" style="text-align: left">How does UPI Circle Work?</h2>The UPI Circle enables a primary UPI user to delegate transaction authority to a trusted secondary user. This delegation can be customized as partial or full, based on the primary user’s preferences and requirements. It is especially beneficial for the elderly, differently abled, or those who need support in managing their finances.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2025/01/Sub-Banner-1-100.webp" alt="M2P Fintech" title="" width="100%" height="317"><h3 class="heading-node" id="vuzvmp180" style="text-align: left">Full Delegation</h3>This mode allows the primary user to assign a monthly transaction limit of up to ₹15,000 to the secondary user. Within this limit, the secondary user can independently make payments, with a maximum cap of ₹5,000 per transaction. It enables the secondary user to transact freely within the set boundaries.<h3 class="heading-node" id="3wwk554wb" style="text-align: left">Partial Delegation</h3>In this mode, the secondary user must seek the primary user’s approval for every payment request. Unlike full delegation, the secondary user cannot complete transactions independently, providing the primary user with tighter control over each payment.<h2 class="heading-node" id="0hdqqtgiz" style="text-align: left">Benefits of UPI Circle</h2><ul class="list-node" id="96mv2y6y2"><li>Enhanced Control: Primary users can set spending limits and approve transactions, ensuring better control and oversight.</li><li>Transaction Transparency: Allows primary users to have complete visibility into transactions made by secondary users, ensuring full transparency.</li><li>Customizable Permissions: Allows to set specific rules and parameters for secondary users, making it perfect for use cases such as parental oversight on children's spending or managing business expenses.</li><li>Financial Inclusion: Makes digital payments accessible to underserved populations, helping integrate unbanked individuals into the financial system.</li></ul><h2 class="heading-node" id="q1lnfyeks" style="text-align: left">Use Cases of UPI Circle</h2><ul class="list-node" id="don6z1ye5"><li>For Senior Citizens: Simplifies digital payments by letting trusted family members handle transactions, easing the burden of navigating complex systems.</li><li>For Students: Offers quick, controlled access to funds, providing peace of mind for both students and parents managing expenses.</li><li>For Families: Facilitates collaborative management of household expenses, ensuring smooth operations and promoting financial literacy among younger members.</li></ul>Just as UPI Circle simplifies the payment experience for individuals and families, businesses also require seamless, scalable, and secure solutions for their UPI programs.This is where <a class="link" href="https://m2pfintech.com/upi/">M2P’s UPI stack</a> comes in.M2P’s UPI StackOur cloud-native full-stack UPI platform is a fully regulatory compliant solution that empowers financial institutions of all sizes to seamlessly launch and scale UPI programs within a unified stack. We enable businesses to accelerate go-to-market efforts, reduce operational costs, and improve transaction security with our customizable stack. Our solution is built for unmatched efficiency with<ul class="list-node" id="htsx8y73n"><li>100% light weight <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">API</a> coverage</li><li>Low-code integration</li><li>Limitless scalability</li><li>Economical Total Cost of Ownership (TCO)</li><li>Modular architecture</li></ul>Are you ready to implement UPI circle?<a class="link" href="https://m2pfintech.com/contact-us/?activeKey=1">Get in touch</a> with us today.<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">Twitter</a>&nbsp;for insightful fintech bytes curated for curious minds like you.

UPI Circle: Revolutionizing Financial Accessibility for All

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2024/12/Merchant-Management-System-101-Blog-Banner-2000x1251-.webp" alt="M2P Fintech" title="" width="100%" height="447">Every online transaction involves four key parties:&nbsp;<ul class="list-node" id="2e7wi5tkl"><li>Merchant</li></ul><ul class="list-node" id="fijnffcui"><li>Customer</li></ul><ul class="list-node" id="1yaebqt4h"><li>Issuing bank (the customer's bank) &amp;</li></ul><ul class="list-node" id="fygbfv86z"><li>Acquiring bank (the merchant's bank)</li></ul>A robust system is essential for tracking and managing data effectively to enable seamless transactions among these parties. This is where the <a class="link" href="https://m2pfintech.com/merchant-acquiring-solutions/">Merchant Management System</a> (MMS) comes into play. An MMS not only facilitates transactions but also streamlines operations, making it indispensable for businesses looking to optimize processes and improve customer experiences.<h2 class="heading-node" id="l3vaax3f0" style="text-align: justify">What is a Merchant Management System (MMS)?</h2>A Merchant Management System (MMS) is a comprehensive platform designed to streamline and enhance services for merchants within the financial ecosystem. It encompasses various functionalities, including payment setup, transaction management, settlement &amp; payout management, and customer support integration, all aimed at improving operational efficiency. By managing merchant relationships and processing transactions efficiently, an MMS empowers businesses to meet the demands of today’s fast-paced digital payment landscape.&nbsp;<h2 class="heading-node" id="ju65rri8k" style="text-align: justify">Key Features of a Merchant Management System&nbsp;</h2><h3 class="heading-node" id="3vp4jewbb" style="text-align: justify">Merchant Onboarding&nbsp;</h3>The onboarding process begins with merchants submitting applications along with required documentation for verification. KYC procedures validate their identity and legitimacy through checks on business licenses and ownership details. A risk assessment follows, evaluating the merchant’s profile through credit checks and performance analysis, leading to application approval or rejection based on these findings.&nbsp;<h3 class="heading-node" id="sjb5avvar" style="text-align: justify">Account Management&nbsp;</h3>Merchants gain access to a user-friendly dashboard that allows them to manage their accounts, view transaction histories, and track performance. Self-service capabilities enable merchants to update information, manage payment options, and resolve disputes independently.&nbsp;<h3 class="heading-node" id="d4jy9jszo" style="text-align: justify">Transaction Processing&nbsp;</h3>MMS integrated with payment gateways enables merchants to accept multiple payment methods, including cards, <a class="link" href="https://m2pfintech.com/blog/upi-the-driver-of-economic-growth-and-inclusion/">UPI</a>, wallets, and <a class="link" href="https://m2pfintech.com/blog/bnpl-the-rising-fintech-star/">BNPL</a>. Its real-time transaction monitoring detects anomalies and fraudulent activities, while advanced reporting and analytics provide merchants with valuable insights to assess and optimize their financial performance.&nbsp;<h3 class="heading-node" id="82zj4tw16" style="text-align: justify">Settlement &amp; Payout Management&nbsp;</h3>Settlement and payout management are integral components of an MMS. They facilitate the efficient transfer of funds to merchants, ensuring payments are processed accurately and in a timely manner. This system supports multiple settlement cycles, automated dispute processing, and detailed reporting, enhancing overall merchant operations and financial management.&nbsp;<h3 class="heading-node" id="7cz6izs7t" style="text-align: justify">Campaign Management&nbsp;</h3>Campaign management provides the strategic planning, execution, and tracking of promotional activities like offers, discounts, or loyalty programs. It enables businesses to target specific customer segments, enhance engagement, and boost sales. Effective campaign management ensures seamless coordination and measurable outcomes for marketing initiatives.&nbsp;<h3 class="heading-node" id="1n7uyp8jh" style="text-align: justify">Dispute Management&nbsp;</h3>Automated dispute processing streamlines workflows for efficient case management. Clear communication channels are maintained between merchants and service providers to address transaction-related issues promptly.&nbsp;<h3 class="heading-node" id="icjti465c" style="text-align: justify">Risk Management&nbsp;</h3>Advanced fraud detection tools monitor transactions in real time to identify potential fraud. Compliance monitoring ensures adherence to regulations like <a class="link" href="https://m2pfintech.com/blog/pci-dss-a-quick-guide-to-its-levels/">PCI DSS</a> and AML laws.&nbsp;<h2 class="heading-node" id="85gyzmd4x" style="text-align: justify">Benefits of Owning an Advanced Merchant Management System</h2>Merchant Management System plays a crucial role in ensuring regulatory compliance by helping institutions adhere to <a class="link" href="https://m2pfintech.com/blog/know-your-customer-kyc-the-need-for-authentication/">KYC</a> (Know Your Customer) and <a class="link" href="https://m2pfintech.com/blog/how-to-combat-money-laundering-2/">AML</a> (Anti-Money Laundering) regulations. They enhance operational efficiency through automation, streamlining tasks like reporting, <a class="link" href="https://m2pfintech.com/blog/recon360-redefining-payment-reconciliation/">reconciliation</a>, and performance monitoring. An intuitive merchant dashboard provides valuable insights into key metrics such as transaction volumes and settlement statuses. Additionally, MMS includes tools for fraud detection and risk scoring, allowing real-time monitoring of merchant activities and flagging suspicious behavior. Robust reporting and analytics features help track KPIs and generate financial reports, enabling informed decision-making.&nbsp;<h2 class="heading-node" id="99z47gc2x" style="text-align: justify">How to Choose the Right Merchant Management System?</h2>Selecting the right Merchant Management System (MMS) is crucial for driving efficiency and ensuring smooth operations. Here are key factors to consider.&nbsp;<h3 class="heading-node" id="zmctnckm8" style="text-align: justify">Multi-Tenancy Support</h3>An ideal MMS should handle multi-tenancy support to manage multiple merchants, aggregators, and sub-merchants from a unified platform. It should facilitate transactions effortlessly and accommodate both present and future requirements through no-code workflows for smooth onboarding.&nbsp;<h3 class="heading-node" id="88cfo5ij8" style="text-align: justify">Integration Capabilities</h3>Ensure that the system offers seamless integration with existing infrastructure, such as payment gateways and CRM platforms. Automated AML and KYC checks are critical for streamlining compliance without disrupting your ecosystem.&nbsp;<h3 class="heading-node" id="tbzt8h41h" style="text-align: justify">User-Friendly Interface&nbsp;</h3>A well-designed dashboard simplifies managing tasks like tracking merchant performance and generating reports, especially when dealing with comprehensive risk assessment tools.<h3 class="heading-node" id="ltwlfgpph" style="text-align: justify">Security Features</h3>Prioritize strong security measures, including advanced encryption protocols and real-time fraud detection algorithms that protect sensitive merchant data.<h3 class="heading-node" id="h1fpzpc3g" style="text-align: justify">Customizability and Flexibility</h3>Look for a system that can be tailored to your unique business requirements through custom workflows and flexible configurations.<h2 class="heading-node" id="o98ly1xh8" style="text-align: justify">Elevate your Merchant Operation</h2>Merchant Management Systems play a vital role in enhancing operational efficiency, ensuring compliance, and streamlining interactions between merchants and service providers. Investing in a robust MMS can optimize operations while effectively mitigating associated risks. <a class="link" href="https://m2pfintech.com/contact-us/?activeKey=1">Request a demo</a> today to explore our MMS solution and its capabilities. <a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">Twitter</a>&nbsp;for insightful fintech bytes curated for curious minds like you.

Everything You Need to Know about Merchant Management System

Offline Digital Payments: Boosting Financial Inclusion in India

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/07/promotion-banner-1.webp" alt="M2P Fintech" title="" id="wx7r0ba8i" width="100%" height="317">Debit cards are pivotal to a bank’s digital payment mix. With minimal credit and regulatory risks involved, they are safe digital payment facilitators that deliver convenient transactions, freedom from debt, and rewards. Banks leverage debit cards for higher customer acquisition, retention, and loyalty while diversifying revenue streams through transaction fees.&nbsp;In India, the number of debit cards in circulation is projected to witness a steady increase of 84.6 million cards by 2028. The total number of debit cards is anticipated to reach an impressive&nbsp;1&nbsp;billion*.<h2 class="heading-node" id="0zxvdvu3r" style="text-align: justify">Need for a Modern Debit Card Solution&nbsp;</h2>Banks today need to keep up with growing customer expectations, advanced technology innovation, and regulatory changes. Though legacy debit card systems have served traditional banks so far, they have limited agility and are high on cost. The restrictions impact their ability to accelerate efficiencies, handle major transaction volumes, and accommodate technology upgrades and innovations. These hinder the bank’s capability to go-to-market quicker with debit cards that support instant upgrades and growth.&nbsp;Investing in a scalable, robust, new-age&nbsp;<a class="link" href="https://m2pfintech.com/blog/say-goodbye-to-hassles-simplify-debit-card-management-with-m2p-fintechs-revolutionary-platform/">debit card management</a>&nbsp;solution that accelerates&nbsp;<a class="link" href="https://m2pfintech.com/blog/debit-card-issuance-101-all-you-need-to-know/">debit card issuance</a>&nbsp;and decreases operational inefficiencies is crucial for banks. But integrating modern debit card management systems into traditional banking infrastructures is no easy feat. Manual data transfers, disparate systems, and limited adaptability can lead to errors and reduced user satisfaction. Integration and migration often involve reliance on multiple vendors which further adds to the confusion and inefficiencies.&nbsp;<h2 class="heading-node" id="w72zpikw1" style="text-align: justify">Comprehensive, Cloud-agnostic Debit Card Stack</h2>Our modern&nbsp;<a class="link" href="https://m2pfintech.com/debit-cards/">Debit Card Management System</a>&nbsp;is a robust, scalable, cloud-agnostic solution that eliminates the need for multiple vendors and serves as a comprehensive one-stop shop for all your debit card issuance and operational requirements. By seamlessly integrating with financial institutions, payment gateways, and third-party services, we deliver enhanced security, lightning-fast transactions, and an unbeatable user experience. While end customers can enjoy unified interface, real-time updates, and top-tier security, banks benefit from seamless operations and quick turnaround times.&nbsp;<h2 class="heading-node" id="eplkua3t4" style="text-align: justify">Key Ancillary System Integrations&nbsp;</h2>Our ability to seamlessly stitch in loyalty programs, personal finance,&nbsp;<a class="link" href="https://m2pfintech.com/blog/all-you-need-to-know-about-building-a-robust-fraud-and-risk-management-frm-system/">fraud and risk management</a>,&nbsp;<a class="link" href="https://m2pfintech.com/blog/recon360-redefining-payment-reconciliation/">reconciliation</a>,&nbsp;<a class="link" href="https://m2pfintech.com/blog/unlock-the-future-of-banking-with-next-gen-core-banking-solutions/">core banking</a>, and&nbsp;<a class="link" href="https://m2pfintech.com/blog/transform-digital-onboarding-with-vkyc/">KYC</a>&nbsp;modules with the debit card management solution sets us apart from our peers. The add-on integrations are seamless with zero lag, and they enhance the value and functionality in addition to creating a personalized and holistic banking experience for the customer.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/07/Img_1-1.webp" alt="M2P Fintech" title="" width="100%" height="342"><h3 class="heading-node" id="nxm0zsuql" style="text-align: justify">Loyalty Program</h3>Loyalty programs boost customer lifetime value. When debit card systems are integrated with robust loyalty modules, banks can ensure their valued customers earn rewards and exclusive benefits without any issues. They can personalize offers, offer points, and reward redemption based on debit card usage.<h3 class="heading-node" id="qdxgvzm0u" style="text-align: justify">Personal Finance Management (PFM)</h3>With our user-friendly PFM technology, financial institutions can help their clients set and stick to realistic financial objectives like saving money and paying off debt. The personal financial management module enables users to keep tab on their money, make plans, and get tailored advice.<h3 class="heading-node" id="ktcsgqt3l" style="text-align: justify">Fraud Risk Management (FRM)</h3>Banks can mitigate risks and make informed decisions with our&nbsp;<a class="link" href="https://m2pfintech.com/blog/all-you-need-to-know-about-building-a-robust-fraud-and-risk-management-frm-system/">FRM</a>&nbsp;solutions. Integrating our FRM module provides real-time fraud detection, thus protecting customers and financial institutions.<h3 class="heading-node" id="tdlca3qj8" style="text-align: justify">Access Control Server (ACS)</h3>With our&nbsp;<a class="link" href="https://m2pfintech.com/acs/">ACS</a>&nbsp;system, banks can benefit from enhanced authentication measures that include two-factor authentication. These help to protect against unauthorized access and ensure secure debit card usage for customers.<h3 class="heading-node" id="2q599yge7" style="text-align: justify">Reconciliation</h3>Integrating with&nbsp;<a class="link" href="https://m2pfintech.com/blog/recon360-redefining-payment-reconciliation/">Recon360</a>, our standalone product enables seamless end-to-end reconciliation for transactions, payments, and value-added services. Banks can have greater control over card networks, digital channels, multicurrency, and more. It simplifies exception management, dispute resolution, loyalty tracking, and fund transfers.&nbsp;&nbsp;<h3 class="heading-node" id="ushsikmr2" style="text-align: justify">Core Banking System (CBS)</h3><a class="link" href="https://m2pfintech.com/blog/unlock-the-future-of-banking-with-next-gen-core-banking-solutions/">CBS</a>&nbsp;is the bedrock upon which a bank’s financial services can be built. Layering the debit card management system into the CBS enables complete financial management by streamlining fund transfers through organized and efficient processes.&nbsp;<h3 class="heading-node" id="qvqsoaswy" style="text-align: justify">Know Your Customer (KYC)</h3>Our platform lets you collect, verify, and manage&nbsp;<a class="link" href="https://m2pfintech.com/blog/crack-the-kyc-jigsaw-ease-onboarding-compliance/">KYC</a>&nbsp;information and streamline the onboarding process. The KYC solution ensures regulatory compliance, enhances customer onboarding efficiency, and improves overall customer experience.<h3 class="heading-node" id="t4evco8xo" style="text-align: justify">Switch</h3>The&nbsp;<a class="link" href="https://m2pfintech.com/blog/what-is-a-payment-gateway-and-payment-switch-understanding-the-basics-of-payments-architecture/">payment switch</a>&nbsp;facilitates smooth communication between payment service providers, routing transactions, and processing payments. M2P’s Switch-as-a-Service offers versatile capabilities, including authentication, tokenization, and transaction processing. Its architecture ensures seamless transaction orchestration within the debit card solution.&nbsp;<h3 class="heading-node" id="ljectnvx1" style="text-align: justify">Notifications</h3>M2P integrates with the bank’s Short Message Service (SMS) vendor for customer debit card notifications. It covers various events like successful transactions, limit exceeded, and more. Our real-time notification system aids customers in staying informed.&nbsp;&nbsp;&nbsp;By coupling the above discussed ancillary systems with our debit card stack, we provide a comprehensive and integrated solution that delivers enhanced functionality and increased value for both the customers and the financial institution. The debit card management solution suite can be readily integrated with products individually or used as a stand-alone product, making it a versatile option.&nbsp;<h2 class="heading-node" id="fx5l17msw" style="text-align: justify">What Makes our Debit Card Solution Unique?&nbsp;</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/07/img_2.2-1-1.webp" alt="M2P Fintech" title="" width="100%" height="230"><h3 class="heading-node" id="e4cnhg0y8" style="text-align: justify">Plug-and-Play Architecture</h3>Our approach is not one-size-fits-all. We empower banks to customize and shape the system according to their unique preferences and workflows. Moreover, our add-on products further enhance the debit card management system’s capabilities, with full customization options for cherry-picking functionalities that align with the institution’s goals, ultimately elevating the overall customer experience. This comprehensive approach sets us apart, making our debit card solution the first of its kind.&nbsp;<h3 class="heading-node" id="vg5mi011s" style="text-align: justify">Smooth Third-Party Integrations</h3>Our system is built on a foundation of modularity and microservices, allowing seamless integration with both in-house and external services, including essential systems like CRM. The heart of our approach lies in our&nbsp;<a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">API</a>-based approach, which ensures smooth and uninterrupted interactions with third-party integrations, particularly emphasizing the significance of CRM and the power of omnichannel engagement tools. By embracing this cohesive ecosystem, each component works harmoniously together, enriching the overall experience for users.&nbsp;<h3 class="heading-node" id="m1lao4e6i" style="text-align: justify">Diverse Banking Platforms</h3>Our debit card management system facilitates seamless interactions with diverse banking platforms, enabling a unified experience for customers across&nbsp;Kiosk, POS, IVR,&nbsp;ATM, online banking, and mobile apps. Our versatile architecture ensures smooth data exchange and synchronization, streamlining operations and enhancing customer convenience. With us, banks can deliver a cohesive and user-friendly banking experience, thus maximizing customer satisfaction.&nbsp;<h3 class="heading-node" id="1rc7qkc3z" style="text-align: justify">Safety, Efficiency, and Reliability</h3>Banking can be made easier with increased safety, instantaneous efficiency, and decreased downtime. Our Microservices-based strategy is both flexible and robust, while our high-performance, distributed streaming infrastructure guarantees rapid data flow. You can relax knowing that any potential risks to your financial system have been mitigated and that errors and downtime have been kept to a minimum.&nbsp;<h2 class="heading-node" id="ilmu5qvhx" style="text-align: justify">Opportunities and Possibilities&nbsp;&nbsp;</h2>The future of debit card management holds innovative solutions. Akin to the versatility of AWS, our revolutionary platform empowers banks with intuitive drag-and-drop functionality, granting unparalleled autonomy to perform functions freely.&nbsp;Our debit card management system is about to set new standards with state-of-the-art AI-driven fraud detection and security protocols that mitigate risks in real time. By leveraging blockchain-based measures, we ensure an impregnable fortress for data and transactions, fostering unshakable trust within the digital ecosystem.&nbsp;And that’s not all.&nbsp;&nbsp;We take customer experience a step further with partnerships with an extensive array of services and financial products. This open ecosystem unlocks limitless opportunities, enabling banks to curate a truly personalized and unparalleled banking experience.&nbsp;Supercharge your debit card management system and get ahead of the competition <a class="link" href="https://m2pfintech.com/contact-us/?utm_source=mainblog&amp;utm_medium=blg&amp;utm_campaign=july">Talk to&nbsp;M2P today!</a>*<a class="link" href="https://www.statista.com/forecasts/1150250/debit-cards-in-use-forecast-in-india">Number of debit cards in India 2013-2028 | Statista</a><a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">Twitter</a>&nbsp;for insightful fintech bytes curated for curious minds like you.

Elevate your Banking Operations with our Integrated Debit Card Management System

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/hero-banner-2.webp" alt="M2P Fintech" title="" id="fudvus1lb" width="100%" height="253">The pandemic changed the world as we know it, and banking was no exception.Customers began preferring mobile-first, secure, personalized, and digital payment methods over direct ones to transact, and banks had to adapt to survive.Traditional banks had to find efficient ways to drive customer experience and security. They embraced digital transformation rapidly and implemented new technologies to offer customers a seamless banking experience.Banks had to ensure that their Debit Card Management Systems (DCMS) were equipped to handle personalization, security, and the surge in usage. They had to adopt measures such as fraud detection and prevention systems, real-time transaction monitoring, and enhanced security protocols to ensure the safety of customer data.But running a debit card operation can be a challenging task for banks. Pressure from evolving customer preferences, competition from contactless payment modes,&nbsp; and evolving regulatory changes severely affect the debit card landscape. Legacy banking systems are plagued by cost and effort bottlenecks that further impact the operational efficiency and profitability of banks.Solution: Next-gen Debit Card Management System&nbsp;To survive and thrive, banks need to modernize their core debit card infrastructure with futuristic, scalable, and innovation-friendly technology. Modern Debit Card Management Systems transform the way banks handle debit card operations. From super-quick transaction speed, personalized customer experiences, to enhanced security features and seamless integrations, modern debit card platforms are reshaping the way banks manage debit cards.Before going head-on into what DCMS is and how it can improve efficiency, let’s take a quick trip down memory lane.<h2 class="heading-node" id="o2c1947a5">Debit card, over the years</h2>Debit cards have always been a ubiquitous part of the digital financial ecosystem enabling inclusive access to everything from subsidies, disbursals, remittances, bill payments, and more. It is widely used for various transactions such as ATM withdrawals, POS purchases, and online payments.&nbsp; Factors like freedom from debt, convenient card-based payment features, and rewards in the form of cashback have driven the shift in customer behavior towards debit cards. The security, efficiency, and convenience offered by debit cards played a vital role in India’s journey toward a cashless economy.India's debit card journey started in the late 1980s with technological advancements. SBI Cash Plus card was launched in 1987, followed by Electronic Funds Transfer in 1994. INFS launched in 1997, and in 2000, RBI introduced two-factor authentication for online transactions. Two-factor authentication for online transactions using debit cards came in 2010. RuPay debit card was launched in 2014, and demonetization in 2016 boosted debit card usage.<h3 class="heading-node" id="2y29tx40t">Post 2020</h3>During and after the pandemic, <a class="link" href="https://m2pfintech.com/blog/rise-of-wearables-in-payments-and-banking/">wearables</a> such as bracelets, rings, and watches linked to debit card accounts served as a safe, contactless way to transact. These wearables use <a class="link" href="https://m2pfintech.com/blog/nfc-payments-simplifying-payment-space/">Near Field Communication</a> technology to process transactions in real-time, making payments quickly and easily.<h3 class="heading-node" id="kbveoma2c">Fast forward to 2023</h3>As of January 2023, there were over 945 million active debit cards in India. Industry experts predict that the usage of debit cards in the country will continue to grow, with an estimated increase of 84.6 million cards by 2028.Banks issue various <a class="link" href="https://m2pfintech.com/blog/debit-card-issuance-101-all-you-need-to-know/">types of debit cards</a> based on the payment platform, technology, and usage. They offer banks an excellent opportunity to cater to diverse needs and expand their customer base.But, here comes a crucial question.Are banks using the right debit card stack?You’ll know if you continue reading.Traditional banks use legacy debit card management systems with limitations that inhibit the capability of the bank to innovate, scale, and grow. Here’s a quick look into the bottlenecks that hinder banks from delivering the best experience to customers.<h2 class="heading-node" id="yhwpo2fqf">Bottlenecks in legacy DCMS</h2><ul class="list-node" id="8q6zo3njp"><li>Scalability can be a significant issue since traditional systems are monolithic and difficult to scale horizontally.</li><li>Use of multiple vendors for different stages of the debit card management process leads to delays in the card issuance process and quality control issues.</li><li>High maintenance costs are a key problem faced while using a traditional DCMS, as they are complex and require additional resources and time-consuming operations.</li><li>Inflexibility of legacy systems causes delays in system upgrades and makes it challenging for banks to keep up with technological advancements.</li><li>Lack of integration between systems leads to delays, errors, and fraud.</li></ul>To overcome these bottlenecks, banks need to transition to modern and innovative DCMS, which provides optimal customer experience, increases competitiveness, and growth.<h2 class="heading-node" id="jtcuynv48">Traditional vs. Modern Debit Card Management System</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/banner-2.webp" alt="M2P Fintech" title="" width="100%" height="253">The traditional DCMS was limited in terms of personalization, accessibility, the application process, transaction limits, alert notification, and security. However, with the advancements in technology and changing customer expectations, modern DCMS has transformed the banking experience.Modern DCMS offers a greater degree of personalization with options to choose card designs, transaction limits, and even reward programs that suit the needs of customers. Additionally, they offer more accessibility via mobile apps and online platforms, allowing customers to easily manage their accounts and track their expenses.<h2 class="heading-node" id="j61fjxrw3">Modern debit card platform: Introducing M2P DCMS</h2>M2P DCMS is a 360° card management solution that offers fast, scalable, and customizable debit card capabilities, including product setup, card issuance, inventory management, EFT switch, and card management services.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/banner-3.webp" alt="M2P Fintech" title="" id="fu8fkz06u" width="100%" height="203"><h3 class="heading-node" id="mnpwao2m5">Key features</h3><ul class="list-node" id="irafdwc04"><li>Robust API for platform integration</li><li>Seamless onboarding</li><li>Personalized rewards program</li><li>Effective Personal Finance Management (PFM)</li><li>Hassle-free reconciliation &amp; settlement</li><li>Intelligent Access Control Server (ACS) System</li><li>Inclusive set of inbuilt reports &amp; dashboards</li><li>Inbuilt security &amp; compliance</li></ul><h3 class="heading-node" id="bez8ah3y3">Seamless API integrations</h3>Our API-driven DCMS offers a flexible and scalable platform for banks to innovate and adapt to changing customer needs and market conditions.&nbsp; Seamless API integration and communication enable easy integration with third-party services, namely Personal Financial Management (PFM) tools, fraud detection software, and loyalty programs. API integration plays a vital role in enabling the following.<ul class="list-node" id="1mln0fnna"><li>Real-time data exchange</li><li>Automated workflows</li><li>Streamlined processes</li><li>Improved data accuracy</li><li>Better customer experience</li></ul>With API integration, customers can access their account data and perform transactions via different modes, namely online portals, and mobile apps. They can also receive real-time notifications of their account activity, namely purchases, withdrawals, and balance updates. Banks are allowed to enhance their offerings and create more personalized experiences for their customers.<h3 class="heading-node" id="8s9tdho6k">Hyper-personalization</h3>Tailoring offers and services to customers based on individual preferences, spending patterns, and other relevant data is very important. It allows banks to create a more personalized customer experience which in turn improves customer satisfaction, loyalty, and engagement. This helps banks to detect and prevent potential security threats and fraudulent activity in real-time. With modern DCMS, banks can take proactive measures to prevent fraud and ensure the security and safety of customer funds.<h3 class="heading-node" id="1xgxx92xc">Security</h3>To deliver differentiated card programs with the utmost security, banks need an advanced DCMS.&nbsp; The security features must be sophisticated to thwart fraud and cyber-attacks. This is where modern DCMS comes in, offering a range of advanced security features such as the following.<ul class="list-node" id="rr9fxmt9h"><li>Multi-factor authentication</li><li>Encryption</li><li>Tokenization</li><li>Real-time fraud detection</li><li>AI/ML algorithms</li></ul>These systems give users more control over their accounts and enable them to set up alerts and notifications for any suspicious activity, further enhancing the security of their transactions.<h3 class="heading-node" id="3d66b1ndk">Scalability</h3>As the number of debit card users continues to grow, it’s important for the system to keep up with the increasing volume of transactions. Modern DCMS offers a highly scalable solution that can easily adapt to accommodate the growth in users and transactions. Advanced technology and architecture such as cloud computing, microservices, and distributed systems are efficient and reliable even as the number of users rises. This scalability ensures that customers can perform transactions without experiencing delays or system downtime, resulting in a seamless and satisfactory user experience.<h3 class="heading-node" id="hqqr6bwsj">Launching multiple products with quick TAT</h3>CMS offers banks and financial institutions faster turnaround time (TAT) for launching new debit card products with innovative features and benefits. Through advanced technology and flexible APIs, DCMS can integrate new products and services into their systems quickly, helping banks to cater to their customer’s evolving needs effectively. This not only keeps banks ahead of the competition but also ensures that customers have access to a wide number of debit card options resulting in faster TAT and greater loyalty and satisfaction.<h2 class="heading-node" id="lbq5vn0ay">Why M2P Debit Card platform?</h2>With market-winning features and benefits, M2P DCMS is designed to enhance customer experience and operations for banks. &nbsp;Our agile, cloud-agnostic, cutting-edge platform comes with a modular event-driven architecture for maximum impact.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/banner-4-1.webp" alt="M2P Fintech" title="" width="100%" height="314"><h3 class="heading-node" id="sls36a9b0">Integration</h3>M2P offers an API-first technology stack that ensures seamless integration across all apps and web portals. Our aim is to offer a fully customizable solution that meets the unique needs of each client.<h3 class="heading-node" id="9x0ejowps">Time-to-Market</h3>We offer end-to-end solutions and in-house capabilities to help you launch your debit card program 5x faster than the competitors. Our streamlined process ensures minimal dependencies, which allows to get your product to market quickly and efficiently.<h3 class="heading-node" id="o9mo79wcc">Cloud Agnostic</h3>Our platform is designed with a cloud-native and cloud-agnostic approach, utilizing the latest micro-services architecture and low code development to ensure a modern and future-proof solution for our clients.<h3 class="heading-node" id="7v6i0oki1">Modular Event-driven Architecture</h3>Our composable architecture enables banks to run multiple programs concurrently. With this architecture, banks can efficiently manage and scale various programs while ensuring data privacy and security for all parties involved.Want to know more about deploying a Debit Card Management Solution?Reach out to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">Twitter</a> for insightful fintech bytes curated for curious minds like you. &nbsp; &nbsp; &nbsp;

Simplify Debit Card Management with M2P's Revolutionary Platform

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/11/Fleet-Drive-Blog-2-01.webp" alt="M2P Fintech" title="" width="100%" height="447">Logistics is the backbone of any growing economy. In India, the sector is valued at $250 billion and is expected to grow at 8% YoY to reach $330 billion by 2025. The road-based fleet industry, holding over <a class="link" href="https://rmi.org/insight/fast-tracking-freight-in-india-a-roadmap-for-clean-and-cost-effective-goods-transport/" target="_blank" rel="noopener">70% overall share</a> in freight transportation, is a synergy of about 15 million operational commercial vehicles that employ 20 million personnel. The upswing in technological innovations and government policies drive the fleet industry on the road toward digitalization.<h2 class="heading-node" id="m5ns2cs4k" style="text-align: justify">Growth and modernization of fleet industry</h2>Fleet businesses experienced significant revenue growth in the past few years for two primary reasons. One, the evolution of fleet management systems that enabled digital solutions like telematics-based route optimizations and the emergence of fleet aggregators. Fleet management systems have radically disrupted the rather traditional fleet industry by integrating modern technologies and services into the value chain. According to recent reports, fleet management systems as an industry is estimated to grow 14% yearly to 6.8 million units in 2025. As the current market penetration is hanging around 10% for the entire commercial vehicle industry, the growth potential is tremendous. The emergence of fleet aggregators has enabled seamless order and demand management and has generated great opportunities to stabilize and monitor productivity leading to sustainable profitability and growth. And two, the government of India had initiated several digital policies such as FASTag-based toll collection, digital e-way bills, and compulsory installation of GPS devices in commercial vehicles to tap into the day-to-day fleet operations data.<h2 class="heading-node" id="19bv0yegi" style="text-align: justify">Key operational challenges</h2>In spite of the brisk progression in digital adoption, the fleet industry grapples with operational inefficiencies and ineffectual resource utilization. Not all fleet operators have access to technology that helps them control costs and enhance operational excellence, productivity, and profitability. In this article, let's review the top challenges of fleet businesses and how we can help resolve the pain points. <h3 class="heading-node" id="1tw7390n0" style="text-align: justify">Truck owner&nbsp;fragmentation </h3>80% of the trucks running in the country are owned by small vendors with a maximum fleet of five or fewer trucks. These small fleet owners are outside the purview of digital tools and analytics. They lack a&nbsp;centralized platform for evaluating trip data to optimize cost and make better decisions to promote overall development and profitability. <h3 class="heading-node" id="gc9jqny5b" style="text-align: justify">Multiple stakeholders </h3>The mandates of the Indian government and ongoing digitization efforts have detangled some of the essential knots for the fleet business. However, onboarding and managing the fleet system is still a hassle. For example, FASTag wallet, fuel payments, <a class="link" href="https://m2pfintech.com/kyc-suite/" target="_blank" rel="noopener">KYC</a> of drivers, and vehicle registration on the Telematics Platform are arduous tasks involving multiple stakeholders such as Fleet Aggregators, Transporters, Oil Marketing Companies (OMCs), Banks, and National Electronic Toll Collection (NETC).Further, though the fleet payments ecosystem renders numerous digital payment solutions, they are essentially decentralized. This makes it impossible for the fleet operators to view or manage such payments/expenses under one roof. For instance, payment cards for fuel, toll booth payments via FASTag, and other miscellaneous expenses paid (via diverse modes) ought to be handled individually. <h3 class="heading-node" id="tr3d1qtao" style="text-align: justify">Capital allocation </h3>India has the largest road network covering about 98,000 km of National Highways, which is just 2% of the overall road network in the country. But 40% of the total traffic is concentrated on these highways. Nevertheless, the Indian commercial vehicle covers 300 km a day, which is relatively low compared to the global average of 500-800 km a day. A sizeable portion of this journey (~40%) is dead miles, implying trucks travel without load yet have some capital allocated for the return trip. This is done in anticipation of new orders during the return journey; otherwise, they risk missing out on orders due to a longer lead time in getting the capital allocated and the ideal vehicle at the pickup location. Due to the dynamic nature of freight orders, the capital allocated to a vehicle is not in line with the capital required for optimal utility. <h3 class="heading-node" id="bsbf6muja" style="text-align: justify">Limited access to credit&nbsp; </h3>There is a momentous improvement in the fleet industry due to the private sector participation in fleet aggregation and telematics services and government initiatives. However, lenders don't have complete access to payments and cashflows handled by the fleet owners. This results in inefficient credit decisions. For example, lenders have limited or no visibility to real-time reports in terms of daily distance covered, transactions on fuel &amp; FASTag, etc., per vehicle. This leaves lenders with inadequate information on vehicle capital utilization,&nbsp;which in turn results in inefficient credit decisions and low participation in providing working capital for fleet operations.<h2 class="heading-node" id="gjsxze3ag" style="text-align: justify">How can our centralized fleet platform help?</h2><a class="link" href="https://m2pfintech.com/fleet-drive/" target="_blank" rel="noopener">M2P'</a>s Fleet Drive serves as a centralized fleet payments management platform for the end-to-end business needs of the fleet operators, the telematics sector, and the lenders. Our platform serves as a one-stop solution for all fleet challenges by enabling harmonized payment management across trips and cohesive access to the capital for fleet operations. Our cutting-edge <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/" target="_blank" rel="noopener">API</a>-driven technology stack ensures seamless integration of the stakeholders such as NETC, OMCs, lenders, telematics, and fleet aggregators, and provides the following benefit to the fleet industry. <h3 class="heading-node" id="p4pd974mg" style="text-align: justify">Seamless onboarding and integration&nbsp; </h3>M2P's API-driven Fleet Drive Platform fosters frictionless onboarding of vehicles and drivers. It also enables hassle-free, digital, and secure integration with stakeholders such as OMCs, NETC, fuel retailers, banks providing <a class="link" href="https://m2pfintech.com/blog/how-to-implement-the-best-prepaid-payment-instrument-ppi-for-your-business/" target="_blank" rel="noopener">PPI</a> wallets, and Enterprise Resource Planning (ERP) of fleet aggregators for trip payments management.&nbsp; <h3 class="heading-node" id="e22ukte1x" style="text-align: justify">Single wallet to manage all payments </h3>The platform allows fleet owners to manage payments across FASTag, fuel, and ATM expenses throughout the trip. It also empowers the fleet owners to switch unused funds across the driver FASTag and fuel account back to the master wallet, enabling real-time capital allocation.&nbsp; <h3 class="heading-node" id="9uinlnwb5" style="text-align: justify">Real-time control and visibility&nbsp; </h3>Our Fleet Drive Platform has a centralized dashboard that provides comprehensive visibility to all on-trip operations. Fleet owners can track active vehicles, driver location, wallet balance, limit management, and capital allocation across the fleet.&nbsp; <h3 class="heading-node" id="z6ppg8kcw" style="text-align: justify">Partnership with major Oil Marketing Companies (OMCs)&nbsp; </h3>The platform facilitates stakeholders with cross-functional opportunities like fuel cashback/rewards with no surcharge on fuel payments across partner OMCs. Our API-driven technology stack supports OMCs in onboarding transporters, integrating with payment wallets, generating statements and reconciliation.&nbsp; <h3 class="heading-node" id="x498k680b" style="text-align: justify">Add value with fintech layer&nbsp; </h3>Fleet Drive Platform provides real-time reports and insights for lenders to make accurate credit decisions. With its end-to-end integration across the fleet payments ecosystem, the platform makes sure the transactions are recorded and verified for each vehicle across the entire fleet. This ensures lenders have complete visibility of the capital utilization by each fleet operator and their vehicles. They are empowered to manage risk effectively based on their Business Rule Engine (BRE) and provide credit. For Fleet Operators, adding a fintech layer to the fleet operations value chain will help in handling cash flow management based on demand and route optimizations and getting credit access from lenders.<h2 class="heading-node" id="uwglbh6eq" style="text-align: justify">360-degree Fleet Payments Management</h2>Despite the numerous advantages of the modern fleet management system, its market penetration in the fleet industry is comparatively low and lacks the finance layer to enable efficacious and secure operations. It is imperative to amalgamate the data generated by telematics &amp; fleet aggregators with the fleet payments in order to render better insights and improve the decision-making ability of the fleet operators and lenders. M2P's Fleet Drive Platform employs an API-driven technology stack to seamlessly integrate all the stakeholders to create an efficient 360-degree Fleet Payments Management. For more information on our Fleet Drive Platform, write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp; <a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noopener">Subscribe</a> to our newsletter and get the latest fintech news, views, and insights directly to your inbox.&nbsp; Follow us on <a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a> and <a class="link" href="https://twitter.com/m2pfintech">Twitter</a> for insightful fintech tales curated for curious minds like you.&nbsp;

Optimize Fleet Payments through Fintech Innovations

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/10/Gift-Cards-Blog-01-1.webp" alt="M2P Fintech" title="" width="100%" height="358">Gifts play an important role in creating and nurturing relationships. Right from the historic age, gifts in the form of commodities, gold, silver, and cash were welcomed with great gusto.<h2 class="heading-node" id="8hk25m6sk" style="text-align: justify">Are gift cards better than cash?</h2>Choosing the right gift is always a challenge, even for the most seasoned gifters. That’s why cash evolved as a versatile gifting option. Cash was among the most useful gifts that enabled the receivers to buy anything of their choice. However physical cash gifts were considered impersonal and indifferent, not allowing the receiver to treat the gift as a memorable souvenir. As societies progressed towards a <a class="link" href="https://m2pfintech.com/blog/ready-to-sneak-peek-into-global-cashless-societies/">cashless</a> world, currencies began losing their fancy. Gift cards emerged as a better alternative to cash. It provided a perfect way to gift someone the flexibility and freedom to buy what they want. Today, it’s not just individuals who send gift cards to their loved ones. New-age companies &amp; growing organizations consider gift cards the best way to reward their customers and incentivize their employees. The global gift card market was valued at $619.25 billion in 2019. Experts estimate the market to grow at 16% CAGR and cross over $2,076 billion by 2027.<h2 class="heading-node" id="mc5s8l8zp" style="text-align: justify">What is a gift card?</h2>Gift card is a <a class="link" href="https://m2pfintech.com/blog/prepaid-cards-101-a-definitive-guide-for-growth-and-profitability/">prepaid card</a> that is loaded with a specific amount of money by the issuer. Anyone can issue gift cards by partnering. A gift card works like a <a class="link" href="https://m2pfintech.com/blog/debit-card-issuance-101-all-you-need-to-know/">debit card</a>. The issuer preloads the card with cash, in accordance with the value of the card. The purchaser can use gift cards to make both online and offline purchases. Each gift card has a unique number, a barcode, magnetic stripe, and an encoded chip. That number is "loaded" or activated with the appropriate amount of cash. This is done using the database of the gift card transaction system.<h2 class="heading-node" id="dntnq6gjj" style="text-align: justify">Types of gift cards</h2>There are two types of gift cards. Open-loop – An open-loop gift card can be used at any merchant location that accepts the issuer brand of card. For example, a gift card with the Visa logo can be used for purchases at any store that accepts Visa cards. Closed-loop - Marketed by retail or ecommerce stores, closed-loop gift cards allow the cardholder to purchase anything from the specified seller. For instance, if you buy a gift card from Starbucks or Amazon, you or the receiver would only be able to spend it at that particular store.<h2 class="heading-node" id="5spgga35z" style="text-align: justify">Why are gift cards important for businesses?</h2>Gift cards can be purchased instantly and they directly land in the recipient’s inbox within seconds. They are memorable, convenient, and give total freedom to buy whatever the recipient wants. They can be <a class="link" href="https://m2pfintech.com/blog/payment-cards-design-made-simple-heres-what-you-need-to-know/">designed</a> with personalization to include the person's name, business logo, and even a brief note. All these help boost user experience, brand recall, and loyalty. Something cash gifts can definitely not do. Businesses can leverage gift cards to improve cross-selling opportunities, enhance employee relations and customer relationships, and boost brand equity. Gift cards today transcend marketing. They enable businesses to test products and gain more understanding of the market, and in fact, even serve as an additional revenue grosser (card sales &amp; upselling opportunity).<h2 class="heading-node" id="ugthnn82i" style="text-align: justify">How to accelerate your gift card program?</h2>To create and run a successful gift card program, you'll need a well-thought-out concept and cloud-first technology expertise. Businesses need a powerful API platform to issue scalable gift cards across brands, markets, and currencies. The <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">API</a> platform should allow for quick deployments without contracts, with reasonable pricing, and commission rates. The ability to constantly add new retailers and leverage cutting-edge implementation technology is critical to improving the end-user experience and ensuring a return on investment (ROI) on product development. Partnering with an efficient <a class="link" href="https://m2pfintech.com/blog/why-should-apis-be-your-holy-grail-for-prepaid-card-issuance/">API</a>-led card issuer and program manager is a great way to kickstart your gift card journey. Check if your card issuance and program management partner can deliver on the game-changing pointers below.<ol class="list-node" id="hnyuzbgd3"><li>Customized, form-factor agnostic gift cards issuance</li><li>Cloud-ready services at incredible GTM speed</li><li>End-to-end card processing via own card network interfaces</li><li>Security features embedded with 3D secure technology</li><li>Ability to predefine limits and rewards flexibility</li><li>Offline and online accessibility</li></ol>Looking to issue gift cards? Write to us at&nbsp;<a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>&nbsp;to get started!&nbsp; We are happy to help. <a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Accelerating a Cloud-Ready Gift Card Program

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/08/MicrosoftTeams-image-6.webp" alt="M2P Fintech" title="" width="100%" height="383">Disbursing salaries to the unbanked and underbanked is a crucial challenge for businesses. Direct debit, paychecks, and demand drafts are clearly not suitable options as their bank accounts are either inactive or non-existent. Though paying in cash sounds easier, it involves immense effort in calculating, withdrawing, distributing, and bookkeeping.&nbsp;Businesses worldwide grapple with the responsibility to pay their underbanked employees on time with utmost security. They leverage digitized payroll cards to optimize salary disbursal and deliver secure and seamless payouts.&nbsp;So, what is a payroll card? What are its pros and cons?&nbsp;Keep reading to know.&nbsp;<h2 class="heading-node" id="5ckwb8qg3">What is a payroll card?&nbsp;</h2>A payroll card is a prepaid card that employers use to pay their employees. The employer (business) loads the card with wage or salary via the respective routing/account number. These cards are reloadable and can be issued both in virtual and physical forms. Businesses are adopting customized payroll card programs to embrace sustainability, optimize their financial and human resources, augment bottom line performance, and extend value to employees.&nbsp;Payroll cards are a secure alternative to direct deposits (bank accounts), cash payments, and paychecks. They are ideal for traditional recurrent disbursals, daily wages, fees, just-in-time allotments, and other customized payments and reimbursements. They function like regular debit cards and can be used to make cash withdrawals, POS payments, utility payments, money transfers, and balance inquiries.&nbsp;Payroll cards help the unbanked segments receive salaries in a structured way while helping them save and track their spending. It eliminates the need for a bank account or physically going to a bank to cash a paycheck.&nbsp;&nbsp;<h2 class="heading-node" id="uqt09bdni">Types of payroll cards</h2>Payroll cards can be customized according to business requirements. They are broadly classified into four categories.<ul class="list-node" id="89x3ltnvt"><li>Branded payroll cards - The branded cards carry the card network logo and can be used for domestic and international transactions.&nbsp;</li><li>Personalized payroll cards - These cards have the respective card holder (employee) name printed on the card.&nbsp;</li><li>Instant issue payroll cards -&nbsp; As the name suggests, these payroll cards are issued on the spot. So they do not carry the name of the cardholder.&nbsp;</li><li>Portable payroll cards -&nbsp; If the cardholder holds multiple jobs or has cash flowing in from several sources, then portable payroll cards come in handy.&nbsp; These cards can accept government benefits, tax returns, and salaries from consecutive employers.&nbsp;</li></ul>The above-mentioned card types are not mutually exclusive. They can be mixed, matched, and customized as per the need.Now, let's check out the pros and cons of payroll cards for businesses and employees.&nbsp;<h2 class="heading-node" id="ehevreuu7">How payroll cards benefit businesses?</h2>For employers who intend to take full advantage of electronic fund transfer, <a class="link" href="https://m2pfintech.com/blog/prepaid-cards-101-a-definitive-guide-for-growth-and-profitability/">prepaid</a> payroll cards are a befitting option. The payroll cards program streamlines the payroll process while creating a win-win situation for unbanked employees and their employers. It is also deemed as an economical alternative to issuing paychecks.&nbsp;Here are some of the benefits:&nbsp;<ul class="list-node" id="bshphz1p0"><li>Reduces cost, effort, and time - The payroll card program reduces the costs and time associated with accounting and administration. It cuts down production effort involved in handling manual paychecks and issues associated with lost or stolen checks, stop payment orders, fraudulent cashing of duplicate checks, and more. It minimizes charges related to bank transactions and eliminates escheat issues.&nbsp;</li><li>Increases efficiency - Payroll cards use <a class="link" href="https://m2pfintech.com/blog/why-should-apis-be-your-holy-grail-for-prepaid-card-issuance/">API-based tech stacks</a> that leverage financial technologies to increase the efficiency, pace, and accuracy of payroll processing. Payrolls can be processed in no time, and disbursals can be optimized to their fullest potential.</li><li>Boosts sustainability - The rise of paperless, digitized payroll in the form of virtual and physical cards helps businesses embrace sustainable finance and operations. Payroll cards eliminate the need to cut trees for the paper required to produce physical cash, cheques, account stationery, and more. When the cards are metallic, plastic hazards too get out of the picture. Thus payments and salary disbursals can be made in a green and eco-friendly manner.</li><li>Builds trust and reliability - As salaries get credited to the card on time without the hassle of check bounces or bank strikes, the reliability factor of the employer increases. Employees trust their payroll cards will be ready to use without any security issues.</li><li>Drives employee loyalty - All employees who have payroll cards are eligible for real-time payments regardless of their relationship with the banks. This ensures that salaries are credited to all cardholders instantly without any bias or hassle. Irrespective of being banked or unbanked, employees can use this cashless payment instrument to spend, save and track their expenses safely. These inclusive processes and initiatives drive employee satisfaction and loyalty.&nbsp;</li></ul>Employee welfare is an integral part of any organization. Therefore, it is imperative to recognize and evaluate the advantages and disadvantages of employee payroll cards. It helps you make informed and better decisions that nurture the overall growth of the employees and the business.&nbsp;<h2 class="heading-node" id="fcvsqq9kv">How payroll cards benefit employees?</h2>For employees, payroll cards provide a convenient way to access wages/salaries without physically going into a bank or opening a bank account. Employees can use payroll cards at any merchant that accepts debit cards. They can also help employees avoid check-cashing fees and other charges associated with traditional banking products.&nbsp;Payroll cards offer many other advantages to employees.&nbsp;<ul class="list-node" id="je5f3uu4t"><li>Instantaneous, easy to use, transparent, and secure.&nbsp;</li><li>Provides a convenient way to receive salary/wages without a bank account.&nbsp;</li><li>Eliminates the hassle of cashing the paycheck.&nbsp;</li><li>Promotes financial wellness as cardholders can track their spending and budget more efficiently with a payroll card.&nbsp;</li><li>Helps employees stay without debt. as the spending can be monitored and controlled.&nbsp;</li><li>If the card is lost or stolen, it can be blocked to reduce fraud and loss of funds.&nbsp;&nbsp;</li><li>Can be used to incentivize employees through reward points, cash backs, and discounts on transactions.&nbsp;</li></ul><h2 class="heading-node" id="ckfgbv29e">Downsides of payroll cards</h2>Like any other good thing in life, payroll cards also come with their own downsides. &nbsp;<ul class="list-node" id="m1sbxu2gv"><li>First off, most cards come with monthly maintenance charges and may apply additional fees for certain transactions like balance inquiries, ATM withdrawals, and similar activities. &nbsp;</li><li>The second major downside may happen when there is a card “freeze.” Some service companies place a temporary hold or “freeze” on a card for several days or sometimes even weeks. Employees who do not have a bank account will be unable to make any payments until the freeze is relaxed. &nbsp;</li><li>Further, if the card is lost/stolen, the employee will not have access to the funds until a new card is replaced.&nbsp;</li></ul><h2 class="heading-node" id="cfeambdgp">Are payroll cards a right fit for your business?&nbsp;</h2>Payroll cards serve as a multi-functional tool for employees to create a robust everyday financial system that works for their specific lifestyles. According to surveys, consumers worldwide are actively choosing payroll cards over other forms of payment. In fact, even though most cardholders have access to a bank account, they prefer payroll cards because of the seamless functionality, cross-functional potential, and ability to control income by distinguishing it from other finances.&nbsp;Now you know why payroll cards are a right fit for your business!When you make your employees' financial lives easier, their productivity and loyalty increase multifold. Turnover rates reduce and efficiency improves.&nbsp;Businesses employing the payroll card program have ascertained that it saves time and money, enhances security, improves payment infrastructure, and eliminates issues concerning cash disbursements.&nbsp; Most importantly, they bridge the financial inclusion gap for employees without easy access to traditional banking services. When implemented correctly, payroll cards can be an efficient tool for managing employee expenses and compensation.&nbsp;<h2 class="heading-node" id="q53px9969">How modern card issuance helps?</h2>The advantages of payroll cards are synchronous to the agility and scalability of a <a class="link" href="https://m2pfintech.com/prepaid-cards/" target="_blank">modern card issuance platform</a> catering to the gig economy and flexible working environments across the globe. The platform enables various features like seamless onboarding with an integrated identity verification solution, building multiple use cases like single-use cards, virtual cards, early salary, meal cards, shopping cards, etc., for the card users. The modern mobile-first cards offering instant limits and controls across different payment modes and transaction amounts ensure security and risk management for both employees and employers.&nbsp;Now, still wondering if payroll cards are right for you? Or are you looking for a robust payroll card program? &nbsp;You can get in touch with us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp; We'll be happy to help.&nbsp;Looking for more nuggets of fintech wisdom?<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Pros and Cons of Payroll Cards

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/MicrosoftTeams-image-9.webp" alt="M2P Fintech" title="" width="100%" height="253">The ecommerce market in India is growing at a dynamic pace. Estimated to reach $188 billion by 2025, the sector received $15 billion in investments from private equity and venture capital firms in 2021. At this rate, the Indian ecommerce industry will surpass the US to become the second largest online commerce market by 2034. Xpressbees, Amazon, Flipkart, and Cars 24 are some of the leading ecommerce firms that are making big waves with their investment and expansion plans.Rising smartphone penetration, evolving customer expectations, and convenient digital payments play a major role in the ecommerce boom. Online transactions in the Indian ecommerce ecosystem are estimated to grow by 96% to touch USD 120 billion by 2025. The growth of digital payment options such as credit cards, debit cards, prepaid cards, UPI, and BNPL added impetus to online shopping transactions.In this article, let’s decode the anatomy of payment card transactions in an ecommerce setup.Payment processing is how businesses complete credit and debit card payments. It includes authorization, funding, and settling of a transaction. For a consumer, an online card transaction is a pretty straightforward process that happens within a few seconds. All they need to do is enter the card details, and authorize the transaction with an OTP.And voila! The transaction is successful.<h2 class="heading-node" id="zpom3032i">Key Players in Ecommerce Payments</h2>While the entire transaction may only take seconds, it involves a complex network with multiple steps and players behind the scenes. Here are the players involved in carrying out a transaction.· Cardholder (customer with the payment card)· Merchant (ecommerce website)· Payment Gateway· Payment Processor· Card Network· Issuing Bank· Acquiring BankNow, we are sure you know who a cardholder and a merchant is. So, let’s take a deep look at other players and their role in card transactions.<h2 class="heading-node" id="wpqhfks61">Payment Gateway</h2>A payment gateway (PG) is a service that authorizes transactions between online businesses and their customers in a secure and convenient way. In simple terms, it acts as a secure tunnel between the merchant’s payment portal and the payment processor.<h2 class="heading-node" id="ifw2nj4oj">Role of Payment&nbsp;Gateway</h2>A payment gateway is a central cog in the transaction processing ecosystem for both online and in-store purchases. In a transaction process, PG is the front-end mechanism that collects, authenticates cardholder information, and transfers the details to the merchant’s bank in real-time. Then, the transaction is processed in the merchant’s bank. All payment gateways are PCI-DSS compliant and SSL-certified.For example, imagine you go to an online store, pile up your cart, and click on check-out for billing. When you enter your payment method and details on the website, a payment gateway helps you transfer money to the merchant.<h2 class="heading-node" id="y8i3jrc7z">Payment Processor</h2>A payment processor is a vendor service that acts as a conciliator between the financial institutions and the merchant involved. It facilitates authorization of the transactions and relays the data to clear and settle the transactions for the merchant. Some payment processing services include card acceptance, PCI compliance assistance, security solutions, and customer support.<h2 class="heading-node" id="l1mstpbl2">Role of a Payment Processor</h2>In a transaction, the payment processor acts as a tunnel between the merchant and the customer banks. It takes the information from the payment gateway and connects with the issuer through the card network to authenticate and approve the transaction. The role of the payment processor is summarized below:· Seek authorization for a transaction· Connect with the cardholder’s issuing bank· Transfer funds into a merchant account<h2 class="heading-node" id="5l1rujvkp">Card Network</h2>A card network is a card infrastructure provider that facilitates payment card transactions between the issuer and the merchant. Conventionally, the network validates, processes, and sets the terms for the card transactions. The major card networks in India are MasterCard, Visa, RuPay, Discover, and American Express.<h2 class="heading-node" id="0cnrfhxyg">Role of a Card&nbsp;Network</h2>The card network acts as a communicator between the merchant’s acquiring bank and the customer’s issuing bank. It is responsible for transmitting the transaction information to the correct issuing bank, verifying the issuer’s authentication results, and delivering responses to acquirers.<h2 class="heading-node" id="1pkqmuofu">Issuing Bank</h2>An issuing bank is a financial institution or a bank that issues and distributes (credit/debit) cards to customers. It operates as an essential intermediary between the cardholders and the card networks. Despite the common misconception, card networks do not directly issue cards to customers because of the fundamental risks involved in issuing credit to customers. Only issuing banks do.For instance, if a credit card holder does not pay off his or her debts, the issuing bank will write them off. In addition, the issuer will become responsible for recouping the costs. It is important to note that specific card networks like Discover and American Express serve as their own issuing banks.An issuing bank is typically a commercial consumer bank, commonly known as the issuers. It provides the framework to facilitate reliable and regulated transactions and the rules and standards for payments performed on its system.<h2 class="heading-node" id="2esexjmnq">Role of an Issuing&nbsp;Bank</h2>A card issuing bank is one of the key players in the card transaction and payment processes. Each time a cardholder makes a purchase/payment using a card, the transaction moves through multiple financial institutions and systems before the amount is credited to the merchant’s bank account. The issuing bank assents the transaction based on the customer’s available credit or funds in the account. Upon receiving the authentication request, the issuer’s Access Control Server (ACS) reviews the information, verifies the cardholder using their form of authentication, and responds to the merchant. It also subjects the transaction to its defined set of fraud and risk regulations.In the case of a credit card issuance, an issuing bank generally manages everything on the customer front, such as payment portals, rewards programs, payments, collections, etc. It plays a crucial role in evaluating and determining the credibility of a chargeback. For example, when a cardholder notices a counterfeit or invalid charge made to their credit or debit card, they immediately contact their issuer to file a dispute, kick-starting the chargeback process. The issuer validates the complaint and communicates the chargeback to the acquirer. The acquirer then notifies the merchant to either accept or challenge the chargeback.The issuer is responsible for authenticating the cardholders’ financial information and account data to determine their creditworthiness. Based on the assessment, it extends the line of credit to the cardholders and offers financial support for transactions/payments made with its cards. In addition, the issuing bank also renders essential services such as card activation, setting the purchase limit, suspensions, and card renewals.<h2 class="heading-node" id="p8c1kk2db">Acquiring Bank</h2>An acquiring bank is a financial institution or a bank that offers merchant accounts to businesses. These accounts enable merchants to accept direct debit/credit card payments. An acquiring bank, otherwise known as an acquirer or a merchant’s bank, is a licensed member of a card brand and is responsible for creating and maintaining the merchant’s account. It also manages the communications between card networks and businesses.Usually, the acquirer acts as a payment processor or an Independent Sales Organization (ISO) and processes credit/debit payments on behalf of a merchant. It provides merchants with unique IDs to manage card payments. In turn, the merchants pay a significant fee to the acquirer for their services in the transaction process.Transaction processes are prone to various financial frauds, that include breach of sensitive customer information. As a significant player in the payment process, an acquiring bank ensures transaction security and strictly complies with the Payment Card Industry Data Security Standard (PCI DSS). In the event of a fraud or data breach, the acquiring bank stands liable for the compromised transaction(s).<h2 class="heading-node" id="xswoi0hlp">Role of an Acquiring Bank</h2>As the merchant’s bank, acquirers are responsible for routing the payment card transactions to the appropriate issuing banks. Once the issuing bank disperses the amount from the cardholder’s account, the acquirer accepts the payment and credits the money to the merchant’s account. Furthermore, the acquiring bank exchanges fund with various issuers each time a consumer makes a purchase, returns for a refund, or raises a chargeback. It then issues a net balance (gross sales deducting the fees and reversals) to the merchant for transactions during the given period.When a cardholder uses a card in a purchase, the acquiring bank will either accept or decline the transaction based on the card holder’s account information available on the issuing bank and card network’s database. This process entails two steps.Step 1: Authorization — Request the issuer to validate the card details. If sufficient funds are available in the account, the transaction will be completed.Step 2: Authentication — Verify cardholders’ identity based on the card details entered during the purchase. The authentication process is typically carried out using 3D Secure (3DS).<h2 class="heading-node" id="rdmedr6bw">Payment Processing Workflow&nbsp;</h2>All the parties delved upon above are integral players in the card transaction ecosystem. Transactions would not be viable without any one of them.Curious to know how payment card transaction flow works?Let’s take the example of a credit card payment for instance.Here you go!<ol class="list-node" id="nuiohlbzx"><li>The customer initiates a purchase. The purchase can be made in person, online, or over the phone.</li><li>The merchant evaluates the credit card details entered during the purchase and routes the information to the payment gateway.</li><li>The payment gateway routes information to the payment processor.</li><li>The payment processor communicates the authorization request to the appropriate card network.</li><li>The credit card network routes the request to the cardholder’s issuer.</li><li>The issuer validates the received information and approves/declines the transaction.</li><li>The card network sends the issuer’s response to the acquiring bank.</li><li>The acquiring bank redirects the authorization response to the merchant.</li><li>Based on the response, the merchant accepts or declines the transaction. It deposits all the authorized transactions with the acquiring bank.</li><li>The acquirer credits the merchant’s account and submits the transactions to the credit card network for payment.</li><li>The credit card network pays the acquirer and charges the issuing bank.</li><li>The issuer posts the transaction to the cardholder’s account.</li><li>The cardholder receives the monthly statement and makes payment.</li></ol><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/Banner-for-Issuing-and-Acquiring-Banks-blog_2.webp" alt="M2P Fintech" title="" id="lpb5e7uta" width="100%" height="253">Payment processing is an indispensable part of any business, both online and offline. In the stride toward a digital economy, ecommerce payment processing is a modish necessity.Intrigued? To know more about payment processing, write to us at <a class="link markup--anchor markup--p-anchor" href="mailto:business@m2pfintech.com" target="_blank" rel="noreferrer noopener">business@m2pfintech.com</a>.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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