What you must find out about online payment gateway
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Posted On :
Jan-12-2015
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Article Word Count :
579
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As described later, a "net payment gateway system" has all three of these processes. In contrast, a Real-Time Gross Settlement (RTGS) system does not have the clearing process, and the payment process is directly connected to the settlement process
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The second process is called "clearing." The clearing process is to aggregate all the payment orders and calculate the "net credit/debit position" of each participant. The net position is the sum of the value of all the transfers it has received less the value of all transfers it has sent. If the difference is positive, the participant has a "net credit position" and will receive the net amount. If the difference is negative, the participant is in a "net debit position" and obliged to pay the net amount.
The third process is "settlement." In this process, each participant should pay the net debit position and receive the net credit position. An actual funds transfer is made at this stage, and the settlement becomes final. When a system is dedicated to facilitate the settlement of the transfer of funds, it is sometimes called a "settlement system." However, the term of "payment system" is more commonly used to indicate an overall funds transfer system, including a settlement system. To be precise, "payment and settlement system" would be an all-round expression including both systems.
As described later, a "net payment gateway system" has all three of these processes. In contrast, a Real-Time Gross Settlement (RTGS) system does not have the clearing process, and the payment process is directly connected to the settlement process. But the times have changed, and a lot of attention is currently focused on payment systems.
Large risk is always a cause of concern for the authorities and central banks. Second, a remarkable evolution of the payment system continues due to the development of Information Technology (IT).
The progress of IT has enabled the advancement of payment processing and created some enhanced payment systems. Nonetheless, perhaps the most important development of an IOIS is the web-based B2B exchange, which is not merely a more advanced information system that acts as an interfirm intermediary, but it also offers an organizational arrangement with certain institutional structures to coordinate interfirm relations.
Finally, many exchanges may offer collaborative services for joint planning, design, and forecasting (McKinsey, 2000). Therefore, B2B exchanges become more flexible coordinating mechanisms with fewer inefficiencies and faster operations compared to physical undertakings.
Therefore, both buyers and suppliers benefit from these efficiencies. Nevertheless, perhaps the greatest value derived from B2B e Commerce can be absorbed by buyers through effective e Procurement resulting from better and more informed decisions in selecting suppliers and products, superior planning and forecasting, and obtaining more competitive pricing, better delivery terms, and higher product quality While efficiency considerations may not greatly depend on exchange type, effective e Procurement mainly results from the selection of an appropriate B2B exchange that dictates the supplier consideration set, the amount and quality of industry and product information, and accompanying services of online payment. Therefore, exchange type selection should have a significant impact on e Procurement effectiveness, which is usually determined and measured in terms of supplier performance-competitive price, timeliness of delivery, supplier flexibility, and product quality
These factors can be broadly classified into three main categories–product, organizational, and market characteristics. Product characteristics include asset specificity and product complexity, among others. Company characteristics include procurement importance and novelty, switching costs, and purchase formalization and centralization. Market situational characteristics include a firm’s bargaining power, market liquidity, product availability, relationship reciprocity (trust), uncertainty, and bargaining power. Finally, the importance and novelty of the purchase to the firm also affects the procurement process.
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Article Source :
http://www.articleseen.com/Article_What you must find out about online payment gateway_310417.aspx
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Author Resource :
Feepal is the fastest growing online community for online payment Relevant and Much needed information about including latest news about online payment and payment gateway. Current Affairs and CSAT is updated on a regular basis.
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Keywords :
online payment, payment gateway,
Category :
Business
:
Business
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