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All about Ethereum Merge

Blockchain 4 Mins Read
All About Ethereum Merge

In this digital world, the world’s most popular blockchain platform- Ethereum is all set to witness a radical change. According to the media reports, the Ethereum platform will merge the Ethereum Mainnet with the Beacon Chain, marking a transition from proof-of-work to proof-of-stake. Post the Merge, Ethereum would become a lot greener, leaving Bitcoin as the only leading blockchain that still relies on proof-of-work. According to Ethereum Foundation, Ethereum’s energy consumption is expected to reduce by 99.95% post the Merge.

The merge will immediately improve Ethereum’s speed, sustainability, and scalability to Ethereum’s network. The Merge is scheduled for the 19th of September 2022, but the date could change based on the success of the final testnet merge, client refinements, and the hashrate of the present miners.

The “Merge,” will be the end of the proof-of-work Ethereum and give birth to Ethereum 2.0, the version based on a proof-of-stake consensus algorithm.

Why The Merge?

In the era, when we all look for ways to reduce carbon emissions, coins like bitcoin and ether consume huge amounts of electricity. When in the present world, more people are concerned about climate change, and saving the climate has become their top-most priority, the carbon emissions of bitcoin and Ethereum are too conspicuous to ignore.

In the Merge, Ethereum will deploy a new system named proof of stake, which has been planned many times earlier as well. But due to technical complexity, and the higher cost, the Merge has been delayed multiple times. According to Ethereum co-creator Vitalik Buterin, the company has been working on a proof of stake for almost seven years now, and now all the hard work is getting paid off.

What is the significance of the merge?

To help readers under this transition, the Ethereum Foundation uses an analogy comparing Ethereum to a spaceship in mid-flight. The community has designed a new and better engine post all the testing. This is the new engine, more advanced, which will merge the new, more efficient engine into the existing ship.

Also, since Ethereum’s inception in 2015, the company has been using a system named proof-of-work to securely add new transactions and other information. Proof-of-work requires user computers to solve difficult computations before being allowed to add a new block. Many cryptocurrencies including Bitcoin use this method, known as mining. Though Mining is completely secure, it’s also energy-intensive. Ethereum proof-of-work consumes the same amount of energy annually as some countries consume the same in the entire time frame.

However, proof-of-stake is an alternative, which consumes less energy. Rather than consuming electricity, which fuels computing power, the users looking to be a part of the verification process will put their personal cryptocurrency on the line in a process named staking. These users or validators will be selected randomly to verify new information to be added to a block. They will get cryptocurrency in case they have provided accurate information. The ones producing false information will lose their stake.

How the merge would work

The vital technology backing the merge is the “Beacon chain” — a proof-of-stake ledger of accounts that has been adding and verifying transactions distinct from Mainnet since its inception in 2020 end. If both accounts merge, the information from Mainnet will be transferred to the Beacon chain, resulting in significant energy savings.

Conclusion

Ethereum is certainly big news for the crypto world, but the main concern here is whether Ethereum will become widely accepted for real-life uses and not merely as a vehicle for traders. The users planning to place their bets on a highly speculative and highly touted asset must be prepared to lose a significant portion of their money, if not all of it, due to the risky nature of the crypto market.

No matter how risky the crypto world is, one thing is for sure, that is The Merge as soon as possible. The merge will end the proof-of-work for Ethereum and a new era of a more sustainable, eco-friendly Ethereum will begin.

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Cybersecurity

Everything You Need To Know About Apache Log4j Vulnerability and How You Can Prevent it From Compromising Your Data

Cybersecurity 2 Mins Read
Apache Log4j Vulnerability and How You Can Prevent it From Compromising Your Data

Introduction: What is the Apache Log4j Vulnerability and Why is it Important?

The Apache Log4j vulnerability is an issue that is not new; it has existed since the first version of the Log4j implementation. The Apache Log4j vulnerability can cause log files to become corrupted, rendering them unreadable and unusable. This is problematic for IT teams who rely on these logs to monitor server statistics and make sure that they are running smoothly.

When using apache log configuration, you will need to make sure that the user has appropriate permissions. When logging is enabled for specific users, it’s important to remember that each user will have different permissions in order to read the logs from the server.

What Makes This Vulnerability So Dangerous?

Apache log vulnerabilities are not new, but the latest vulnerability is especially dangerous.

The APACHE LOG vulnerability is related to the Apache logging format, where log messages are bundled in a single line. This makes it difficult to identify which message corresponds to which date or time without parsing through all of them.

How To Prevent The Apache Log4j Vulnerability from Endangering Your Company’s Data

Log4j is a widely used open-source logging framework for Java. It uses the concept of appenders to send logged information to various locations such as the console, a file, or a database. A new vulnerability was discovered in Log4j that can allow an attacker to remotely execute code on a vulnerable system by sending specially crafted log messages.

An organization should take steps to make sure their logs are not vulnerable and try their best not to be subject to attack.

The solution for this issue is to upgrade Log4j as soon as possible if they are running an older version of it and properly configure the tool so that it reads only locally stored logs and does not accept any external configs.

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Blockchain

Best Metaverse To Invest In 2022

Blockchain 5 Mins Read
Best metaverse to invest in

The metaverse has turned into success in the previous few months and has garnered a whole lot of consideration from buyers and tech fans. Metaverse interests a lot of people. For that reason, there are a lot of people who want to invest in Metaverse coins. But the question is, Which is the best metaverse crypto project to invest in?

So in this video, we are going to tell you about “Best Metaverse To Invest In.” The video is going to be amazing so make sure you stick to the end.

Before starting the video, be sure to SMASH the like button & subscribe to never miss out on any of our videos.

The Metaverse is a virtual universe. Because of this fact, this universe includes virtual items. And, in order to buy virtual real estate, goods, or services in the Metaverse, you need virtual money or cryptocurrency. Essentially, the cryptocurrencies used in the Metaverse to buy virtual assets are called Metaverse crypto coins. 

Decentraland (MANA):

MANA is the native currency in Decentraland. It is an ERC-20 token powered by the Ethereum blockchain. Decentraland users use MANA to purchase LAND and also pay for goods and services in the virtual world. Launched in February 2020, Decentraland is the longest-running 3D Metaverse project in crypto. The only other project that comes close to Decentraland is The Sandbox. 

When Facebook announced their name change to Meta, MANA spiked 400% which actually sparked a lot of interest in it and metaverse as a whole and its current market cap is 6.3 billion Dollars. You can purchase MANA on Binance, Coinbase Exchange, KuCoin, Huobi Global, Binance.US, FTX, Crypto.com, Kraken, and more.

Sandbox (SAND):

The Sandbox Metaverse token, which has a market cap of about $4.6 billion. It’s a virtual environment on the Ethereum blockchain, where users may purchase trade and even create their digital goods. With their recently launched Alpha on November 29th, The Sandbox universe is similar to Minecraft but has higher quality and more RPG mechanics. It’s the Sandbox that’s currently in alpha right now. They have land, they have little avatars that it’s 166,000 plots of land with major backers. 

It’s very Minecraft-inspired. When you think about it, Minecraft has 141 million players, the potential for sandbox and its play to earn aspects think about Minecraft, but making money playing Minecraft the potential is endless. You can purchase SAND on Binance, KuCoin, Huobi Global, Gate.io, Bithumb, FTX, Crypto.com, and more.

Axie Infinity (AXS):

Axie Infinity is a game that works similar to Pokemon. Here players can own, trade and battle creatures called Axies and these creatures are NFTs so they can be sold outside of the game. AXS, like many other metaverse coins, is based on the Ethereum metaverse blockchain, which means that gas fees can be high. However, you can be confident in the platform’s safety and security. 

AXS can also be traded for other cryptos, such as Ether, or fiat currency. Axie infinity’s popularity has sky-rocketed in the last six months with a nearly 5,000 percent rise in daily users. If you would like to invest in this Metaverse Crypto Coin, the best exchanges for trading in Axie Infinity are currently Binance, Mandala Exchange, OKEx, FTX, and Huobi Global.

Gala Games (GALA):

Gala Games is a blockchain gaming space powered by the Ethereum token GALA. GALA can be used between multiple GALA game participants, meaning you can use the token in multiple games powered by the Gala blockchain. The GALA is secured cryptographically and is used as the primary medium of exchange between players. 

Nodes and players are rewarded by GALA, with nodes being incentivized through the token and top players earning tokens for playing. The GALA token has great potential to grow, and the game platform is currently developing several more games due to launch soon. Players and nodes are incentivized with GALA tokens and NFT rewards. The company is planning to make more games that will use the token, which will probably increase the token’s price in the future.

Enjin Coin (ENJ):

Enjin Coin is an ERC20 token created by Enjin. It is an online gaming community platform with over 250,000 gaming communities and 18.7 million registered gamers. Developers can use the Enjin Coin to create a unique currency for a gaming community that can be used on any platform. Enjin has established itself as a solid player in the cryptocurrency space. With how fast crypto is evolving, Enjin also proved that it can ride the hype waves and establish itself as a top competitor, time and time again. 

Similar to how investors are betting on WEMIX to deliver high-quality products, traders are betting on Enjin to deliver a high-quality metaverse. Previously, Enjin was able to set itself as a leader in NFTs, by creating a highly active marketplace full of rare NFTs. If you would like to buy this Metaverse Crypto Coin, the best exchanges for trading in Enjin Coin are currently Binance, Mandala Exchange, OKEx, FTX, and CoinTiger.

Note: This is not financial advice. This is for educational purposes only. Please note that cryptocurrency is a highly volatile asset class; only invest what you can afford to lose.

Let us know your opinion in the comment section below.  

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Blockchain

The Complete Guide to Blockchain Technology and How it is Revolutionizing the Way We Do Things

Blockchain 3 Mins Read
The Complete Guide to Blockchain Technology and How it is Revolutionizing the Way We Do Things

Introduction: What is Blockchain Technology?

Blockchain is a digital ledger that records the details of every transaction that occurs within it. It is decentralized, which means there is no central authority, and it is immutable which means that once something has been recorded to the blockchain, it cannot be altered or deleted.
The first use of blockchain was in bitcoin by Satoshi Nakamoto in 2008. Blockchain technology has since evolved and now takes various forms such as Ethereum, Hyperledger Fabric, Multichain, and Corda.
Blockchain may sound like a new technology but according to Wikipedia; “the first work on a cryptographically secured chain of blocks was described in 1991 by Stuart Haber and W. Scott Stornetta”

What are the Types of Distributed Ledgers?

Distributed ledgers, also called DLTs, are systems for recording transactions between two parties in a way that they can be verified independently.
Blockchains are one of the most popular types of distributed ledgers. They store information by creating blocks of data that validate each other to form a chain.
Blockchain protocols are the rules that describe how to generate new blocks and validate transactions by reaching consensus about the order in which they should be added to the blockchain.

What are the Benefits of Blockchain Technology?

Blockchain is a revolutionary technology that has the capability to transform the transfer of digital assets and simplify transactions.
The benefits of blockchain technology can be summarized as:
– Immutable: The data in the blockchain cannot be changed or deleted, and neither can it be history. This makes it an ideal solution for those organizations who want to ensure their data is accurate and secure.
– Secure: Blockchains are resilient to cyberattacks, even those targeting the infrastructure of our society, such as email-based hacking or DDOS attacks on websites. This is because blockchains use cryptography and other security measures to maintainthe protection.
– Cost effective: Using blockchain technology saves businesses money by cutting back on operating expenses associated with storing data in traditional databases, which requires a lot of maintenance and upkeep costs. It also reduces transaction fees

Blockchain Applications in Various Industries

A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order.
Blockchain technology offers the promise to transform the way we manage supply chains, maintain contracts, and share data with one another.
It can be used to keep track of digital currency transactions – like bitcoin – but it can also be used to store information about any kind of asset or transaction, like ownership records or educational credentials.

Conclusion: Why You Should Start Using Blockchain Today

Blockchain was created to solve the “double spending” problem. It has now evolved into a technology that is not just for cryptocurrency. Blockchain is being used in many different industries including marketing, healthcare, and even gaming. Blockchain provides a way for people to secure and share digital information without the need for a centralized authority or server. This new technology can help businesses achieve greater efficiencies and will play an important role in the future of copywriting.

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Blockchain

NFTs and Blockchain: What You Need to Know to Make Money in 2022

Blockchain 2 Mins Read
NFTs and Blockchain What You Need to Know to Make Money in 2022

Introduction: What is a Non-Fungible Token (NFT)?

NFTs are a new type of digital asset that can represent ownership or non-ownership, depending on the context.

What is a Non-Fungible Token (NFT)?

Non-Fungible Tokens (NFTs) are a new type of digital asset which can represent ownership or non-ownership depending on the context. These tokens use the Ethereum ERC721 standard to track and verify ownership. NFTs were first proposed in October 2017 by Kevin Worth the standard was finalized in 2018 by the Ethereum community.

How Blockchain Technology Enables NFTs & Why You Should Care?

Blockchain technology is the backbone of digital currency like Bitcoin, Litecoin, and Ethereum. It gets used for other applications like smart contracts, voting systems, and ledger record management.
Blockchain technology can make games more fun to make them tradeable or enable users to buy, sell, or trade items in-game worlds.
It can make game players feel like they are part of a real economy, thus leading to higher game engagement.

How to Manage Your NFT Portfolio with These 5 Tools for Successful Investing?

NFTs, or crypto-assets, provide investors with more ways to get into the market. They bring a new level of liquidity, but it can be hard to manage them without the right tools.
In this article, we will take a look at five tools that you can use to successfully manage your NFT portfolio and give you an idea of what is out there for investors in the market today.

NFT & The Future of Digital Ownership – Why I’m Betting on NFTs in 2022

I’m betting on NFTs in 2022 because I believe we will be able to realize the full potential of these digital items and their real-world value.
NFTs, or Non-Fungible Tokens, represent a new era for digital ownership. They offer a unique and creative way of trading and own digital content never seen before.
With the rise of video games like CryptoKitties, we see how NFTs get used as a medium for trade and ownership of digital content like nothing we have ever seen before.

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Fintech

The Complete Guide to Fintech and How it has Revolutionized the Banking Industry

Fintech 3 Mins Read
The Complete Guide to Fintech and How it has Revolutionized the Banking Industry

Introduction:
What is Fintech? And Why is it So Important for Financial Institutions?

Fintech, or Financial Technology, is a collection of tools and services that makes it easier for businesses to do financial transactions. These technologies and services also make it easier for them to offer new financial products and services.
The Fintech industry has been experiencing exponential growth in recent years. Moreover, the business likely is valued at $6 trillion in 2022, as more traditional banking institutions turn to fintech to keep up with the quick pace of change in the financial world.

The Advent of Fintech & How AI Is Changing the Face of Financial Services

One of the more recent examples of the advent of fintech is the introduction of chatbots by financial institutions.
Fintechs are experiencing a revolution in banking driven by artificial intelligence. Smartphone’s, computer vision, and conversational interfaces have all helped to enable this new sort of AI banking.
Amongst the most common examples of AI in fintech is Chatbots. These AI-powered conversational interfaces have meant to simplify customer service and even automate some tasks for them.
How Can AI be Used in Fintech to Improve Customer Experience & Drive Revenue?
Automated investment advice is a tool that helps customers make financial decisions. It provides suggestions based on the information in the customer profile concerning what they should invest in and what they should avoid.
These bots can also provide personalized financial advice, including determining whether or not a customer is financially capable of purchasing a home and delivering information on mortgage rates and financing.

The benefits of using AI in Fintech go beyond just customer satisfaction and automation of tasks related to money management. The future holds many possibilities with this technology as digital wallets that can store an unlimited amount of money, augmented reality features for financial institutions, and predictive analytics.

What are Some of the Best Automated Banking Solutions in the Market Today?
Automated banking solutions also existed for a while now, but they are becoming much more prevalent in the market. Every day, more and more people are opting to take their banking online and go paperless.
Some of the best-automated banking solutions in the market today include:
SDK.finance
Temenos
Mambu
Backbase
Oracle FLEXCUBE
Finacle
Finastra
FIS
Forbis
nCino
Novatti
Bricknode

AI Technology in Banking and Its Role in Decision-making Processes
Banks now have a new means of modernization, which is automation. The AI technology in banking used to help with decision-making processes for quite some time now, and it is now that finally they are recognized as essential parts of the banking system.
One industry that has begun to use AI technology is the banking industry. This technology provides banks with a way to remain competitive and continue growing in an increasingly digital world. Banks will be able to automate aspects of their operations and provide better service due to AI technology.
There are many ways that AI technology can get implemented into the banking system today includes data mining and predictive analytics, machine learning, natural language processing, cognitive computing systems, and more. These technologies give banks the ability to streamline many decisions as lending decisions or customer acquisition strategies.

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Fintech

The Future of Lending Money

Fintech 3 Mins Read
The Future of Lending Money

Top Artificial Intelligence technologies disrupting Lending Money

1. Introduction to the future of Lending Money- why is it so relevant?
Lending is a global, trillion-dollar market. And the AI lending industry is poised to take over this space in the next few years.

AI lending will make it easier for smaller lenders to compete with the big banks, which currently hold most of the market share. It will also provide better interest rates, more transparent fees and, lower risk for borrowers. AI-driven finance has a lot of potentials! This article tries to answer your questions about AI lending and what it means for the future of money.

The future of lending money is about artificial intelligence that can do everything from assessing creditworthiness to extending loans, which could be a game-changer if successful.

2. How AI Lending Changes the Way Banks Invest in Loans and Assist Retail Customers
The AI lending software has implications on how banks invest in loans, and it can help make smarter lending decisions. It also facilitates banks to provide retail loans to their customers.

Bank utilizes AI lending tools to make banks aid smarter lending decisions while assisting retail customers with loans. The software has implications on how banks invest in loans and can help them provide retail loans to their customers.

3. The Benefits of Working with an AI-Powered Lending Platform
The benefits of working with an AI-powered lending platform are the same as any other lending platform. But, some additional features set it apart from the rest.

Benefits:
AI-Powered Lending Platforms offer opportunities to get loans that banks may not be able to provide.

It helps you monitor your credit and get instant feedback on your profile based on your financial history and score.

It provides you with credit counseling and advice for managing debt more efficiently and effectively can be of great use to people who have a lot of debt and are looking for a way out

It gives you access to multiple loan products from different providers to match the best suitable option for you with the lowest rates, repayment plan, etc.

4. The Future of Banking and Finance – The Rise of Artificial Intelligence in Financial Services
Artificial intelligence is used on both the bank’s business and client sides. With AI, banks need to offer a personalized experience based on what you need at that specific moment.

AI financial assistants will work with financial advisors to analyze your current status and set up a plan for your future. These assistants can help you make important decisions and help you achieve your goals more efficiently. The goal is not necessarily to replace human-being, but rather to make the process easier by taking care of all the small things for you, like payments and balances.

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Blockchain

HOW BLOCKCHAIN IS HELPING TO FIGHT THE CORONAVIRUS

Blockchain 2 Mins Read
HOW BLOCKCHAIN IS HELPING TO FIGHT THE CORONAVIRUS

As you all know that, this Covid-19 outbreak was so severe and enormous that the World Health Organization had to announce it as a pandemic within even a month of its complete spread.

This should be also known by you, that the essential problem most governments and countries are facing is the shortfall in discovering new cases as well as understanding the span and risk of coronavirus infection.

Blockchain Technology

In such a moment, Blockchain technology is that technically empowered solution, which helps in controlling and preventing the excess spreading of this pandemic by spotting the outbreaks early. Blockchain is going after the drug delivery system and protecting the privacy of the users by the means of treatment. Blockchain Technology is constantly trying to fulfil these goals by keeping the whole procedure transparent, decentralized, and changeless.

Medical Supply Chain Management

As we know, Blockchain Technology helps in data sharing, along with that, it also helps in managing, maintaining, and enhancing the medical devices as well as other necessary supplies for the purpose of treating, retreating, and preserving the virus cases, so that it doesn’t go viral.

Data Sharing

As you must know that, Blockchain helps in offering verified and correct data with the help of ledger technology. It can be also distributed and shared along with the alike networks.

The magic and benefit of Blockchain are that it is a public database and is stored in multiple locations.

So, we hope, we will keep fighting this Coronavirus through Blockchain.

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Fintech

HOW FINTECH COMPANIES CAN HELP BUSINESSES IN MULTIPLE WAYS

Fintech 3 Mins Read
HOW FINTECH COMPANIES CAN HELP BUSINESSES IN MULTIPLE WAYS

With the growing technology, the business sector is also revamping significantly, all thanks to innovative small business solutions. However, these solutions are more effective small-sized businesses as it helps solve several problems, especially when there is limited access to the resources. Using the latest and updated technology assist in optimizing the available resource more effectively. Fintech or financial technology is a boom allowing businesses to manage the available funds and finances properly. 

So if you are among the ones who want to stay updated with the latest technology, check out how fintech companies can help take your business to a newer height.

Opportunity to Adopt Payment Gateways

The ability to accept online payments is important for small businesses, especially when all the world is using the internet to shop. Customers these days prefer to make using digital ways like card payments, online banking, and wallet payments, and much more. A reputed fintech offers exactly what you want to stay competitive in this growing world. Opting for a reliable payment gateway ensures fast transactions and will be easy to integrate with your website or e-store. Moreover, there will be no hidden costs.

Simpler Payment Processing

Fintech also eases the way your clients transact with you. Since customers these days prefer digital payment, so all these payments will not be possible without using Fintech tools or solutions. Using the updated technology will help you prepare for the business and will allow you to accept different kinds of digital payments like wallet payments, mobile payments, etc. If you have an offline small business, then using the updated Fintech solutions will help you get rid of old and bulky payment machines.

Enhanced Customer satisfaction

Fintech solutions are not only beneficial during the transaction process, but it also helps build the trust of your customers. Using these tools, you can compile data about your customers’ preferred mode of payment, their payment patterns, and other relevant details for designing a better small business solution. Using Fintech assist in establishing direct communication with your clients regarding their financial transactions and get their feedback and suggestions.

Automation

Using Fintech apps will automate your systems. Being a small size business, appointing accountants will cost you a fortune, so it is recommended to negotiate with your online payment processor to get the latest automatic accounting feature. Stay smarter while selecting your online payment processor so that you can get numerous financial services as well.

Secure Features

Security is of utmost importance for all business owners, especially when they are going online. Security not only means taking care of physical goods, but the security of intangible data like personal and sensitive information of their clients is the top priority. Fintech tools allow small businesses to conduct online transactions through robust payment gateway solutions that ensure no data loss. 

So, in case you look for effective and updated for your small size businesses, Fintech consultant companies are your one-stop destination. Using the updated Fintech tools and solutions can help small businesses offer the top quality services to their clients.

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Fintech

Best Payment Gateway for Woocommerce Shopify Magento Online Stores

Fintech 2 Mins Read
Best-Payment-Gateway-for-Woocommerce-Shopify-Magento-Online-Stores-in-Dubai-UAE-1

In this digital world, all businesses need to select an online store platform to host their online store. No matter on whichever platform you plan to sell online, it is important to choose the best payment gateway for online stores platforms like woocommerce Magento, Shopify or any other eCommerce platform you use.

Though making the decision is not an easy task, especially when there are hundreds of payment gateway solutions available in the market. In this blog, we include some of the best payment gateways for woocommerce, Magento Shopify and other eCommerce development platforms in the UAE & the Middle East which are trusted by thousands of businesses.

PayCaps

PayCaps is the most popular payment gateway available for eCommerce stores in UAE & Middle East. WooCommerce comes with built-in support for using PayCaps on online portals. Being the pioneer in the payment industry, PayCaps offers a variety of services. PayCaps is available in middle east countries simplifying online payments with secure & seamless Integration with ready plugins for various Web, Apps and eCommerce platforms.

Telr

Telr is also well known for payment gateway solutions in UAE and the middle east helping businesses in improving their online business and closing more deals. Telr supported eCommerce platforms include Woocommerce, Shopify, Magento, etc.

Stripe

Stripe is a popular payment gateway that accepts credit card payments on your website. WooCommerce comes with in-built support to select Stripe as your payment gateway. It also supports the majority of the major credit and debit cards and customers can also pay using Apple Pay, Google Pay, and Alipay. This gateway is available in more than 50 countries and supports various currencies.

PayPal

PayPal with a better checkout experience allowing customers to complete the purchase without leaving your website. This gateway provider is available Worldwide. But it is mandatory to have a PayPal merchant account to use it. PayPal charges monthly payments and transaction fees based on the country.

No matter which eCommerce development platform you use, make sure you choose the best payment gateway for woocommerce, Magento, shopify or any other eCommerce store development platform.

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Fintech

BEHIND THE SCENES – WHAT HAPPENS WHEN YOU SWIPE CREDIT CARD?

Fintech 7 Mins Read
credit-card-payment-processing-cycle

You must have wondered how exactly the payments are processed when you swipe your debit/credit cards at the retail store for payment or submit your credit card details during the checkout process online. In this post, we’ll share the complete process on what happens after you swipe your credit card.

Life-Cycle of Credit Card Payment

Customer:Customer may want to shop for products at a mall or retail store. While some are ready to make the payment through cash, others prefer credit cards. They need to swipe their card on a machine to initiate the transaction.

Issuing Bank: The financial institution that has issued your credit card is known as the issuing bank.

Step 1: Acquiring bank

As soon as you swipe the credit card physically or submit the credit card information on a website, the payment is transferred to the vendor’s account. The recipient of the transaction is known as the acquiring bank.

Step 2: Authorization

The acquiring bank sends the information available on the credit card to the card company such as Visa, American Express, and MasterCard. The process is carried out to determine the issuing bank.

When the customer swipes a credit card at the store, it sets an authentication procedure to verify that an appropriate amount is charged for the merchandise purchased from the store.

Step 3: Authorization Block

Once the card company receives the verification requests, it confirms with the card-issuing bank whether the bank accepts a certain amount of transaction from the particular customer. Once the issuing bank has verified the transaction, the requested amount is placed on hold. This step is known as the authorization block.

Step 4: Confirmation

After receiving confirmation from the issuing bank, the card company confirms the transaction approval to the acquiring bank.

Step 5: Transaction Approved

After the verification process is over, the acquiring bank sends a confirmation to the card company and approves the transaction.

As much as time-consuming and difficult the process seems, it happens in a matter of minutes. you don’t need to wait for hours at the store to get your transaction approved. In this process, your card company sends the transaction request to the issuing bank and verifies the details to initiate the transaction. Interestingly, credit card works even if the acquiring and issuing banks are located in two different corners of the world.

Settlement

The next part is the settlement, which involves the management of the transaction amount according to the merchandise purchased. Let’s have a look at the settlement process and how it executed.

  • Vendor’s End of Day

At the end of the day, the vendor accumulates all the transaction details and shares it with the acquiring bank. All merchants need to share the complete transaction list to the acquiring bank by the end of the day.

  • Net Settlement

After receiving the transaction details, the acquiring bank is responsible for communicating this information to the credit card companies like MasterCard and Visa. The credit card companies gather the information and provide the info concerning the net settlement of the acquiring bank with the issuing bank.

Note that the net settlement is calculated by the credit card companies between the acquiring and issuing organizations. After calculating the net settlement, the credit card company sends the message to the issuing bank stating that they owe a specific amount to the acquiring bank. Basically, it is the duty of the card companies to ensure that all the transactions are settled.

Interchange – Deducting the Interchange Fee

There is a specific interchange fee charged for all possible transactions made through credit cards. Let’s say customer purchases merchandise for Dh200. The Credit Card company will message the issuing bank that they owe Dh196 to the acquiring bank. The difference in the amount is referred to as interchange.

The interchange is the fraction of fee that the card company charges for allowing the merchant to use the particular card at their store. But that’s not it! The merchant will receive DH194.8 in their bank account. The rest of the amount is used by the acquiring bank as fee (also known as the acquirer’s fee). This way the interchange process works. A fraction of the amount is kept by the credit card company and the acquiring bank, while the rest is transferred to the merchant’s account.

Transaction on Customer’s Statement

As soon as the issuing bank receives the transaction request from the Card Company, it displays the transaction on the user’s bank statement with the message “you owe Dh200 and here are the additional rewards”. For using the technology, giving rewards, managing the authorization and net settlement, and verifying the transaction, the two percent of interchange fee is charged in total.

The question is ‘how does it benefit the merchant’ after all the merchant has to pay a 2% interchange fee for each transaction? Well, the electronic payments are far better than cash payments. Merchants no longer need to bear the risk of holding a significant amount of money at the store. Moreover, they don’t have to go through the burden of passing entries or settling transactions. Everything is handled by the card company and acquiring a bank.

Indeed, credit card payment brings together many intermediaries to process the transaction and settle the funds. The surprising fact is that approx 131.2 billion card transactions were reported in the United States in 2018. Amongst this, 124.3 billion transactions contributed to the Visa Card Network.

Additional Players in the Process

The intermediaries who play a major role in payment processing are:

  • Authentication Service Provider: They are the mediators appointed by each bank. They are responsible for the authentication of the credit card details on the bank’s behalf if the payment is processed online. Basically, these companies verify the user’s details by confirming the One Time Password the customers submit. They are responsible for managing the authentication for hundreds of banks.
  • Payment Gateways: Payment Gateways connect the vendor’s site to a safe and secure transaction page. It provides the customers with a secure page, where they are supposed to enter the credit card number and other details safely.
  • Payment Service Providers: The intermediaries who offer other basic services during the online transaction are referred to as the payment service providers. These companies are responsible for offering technology that directs the transactions. They allow merchants to accept payment in different forms such as QR Codes, AliPay, PayPal, etc.
  • Authentication processor: They are the servers that work as translators between banks and payment gateways. Authorization processors capture the encrypted data and share the information with the partner appointed by the authorizing bank.

Security

The whole system runs without the involvement of the human. The checks and controls test the security and encryption to ensure that everything is processed in a safe manner.

Why Don’t You Get OTP Sometimes?

Whether or not you receive an OTP for authentication depends on the merchant. If the merchant believes there can be a risk of fraudulent transactions, they will implement the OTP authentication. However, some merchants prefer to avoid such authentication as it slows down the whole transaction process. The merchants are liable for any fraudulent activities if they don’t offer a secure payment channel. Banks need to issue a 3D compliant card so that a safe transaction takes place with the secure payment channel.

How Issuing Bank Charges the Customer?

The issuing bank has to prepare a bank statement on a specific date every month. The statement displays all the card transactions that take place before the given date. The bank mentions the payment date, which could be the 15th or 25th of every month. Customers making the payment within the given duration are charged 0% interest. But, if you exceed the deadline, the interest on the payment will be imposed by the issuing bank.

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Fintech

PAYMENT GATEWAY VS. PAYMENT PROCESSOR: WHAT IS THE DIFFERENCE?

Fintech 3 Mins Read
payment-gateway-vs-payment-processor

Payment gateway vs payment processors are responsible for validating the transaction from merchants, initiating the transactions, and forwarding the request to the card-issuing bank. However, each term has a different meaning and responsibilities.

What is the Payment Gateway?

Payment gateway refers to the interface between payment processors and vendors. It authorizes the transactions for land-based retailers and eCommerce store owners. The role of the payment gateway is to approve the payment request from the vendor and pass it onto the payment processor for further validation. Before the processor could facilitate the payment, a transaction has to be authorized by the payment gateway. The payment gateway you choose decides can accept or decline the transaction requests.

The most common form of payment gateway solutions is TrustCommerce, Plug N Pay, Chase Paymentech Orbital, Cybersource, CenPOS, PayPal Payflow, Virtual Merchant, First Data Global Gateway, Authorize.net, and more.

What is the Payment Processor?

The payment processor is responsible for facilitating the transaction, once it receives the validation from the payment gateway. These servers have a direct connection with the bank institutions and card companies such as MasterCard or Visa. As soon as the payment gateway validates the transaction request, it forwards the same to the payment processor.

On receiving the payment request from the merchant, the payment processor forwards it to the card-issuing institution for further validation. Commonly known as acquirers, payment processors manage real-time transactions.

The popular form of payment processors is Heartland, WorldPay, Chase Paymentech, TSYS, Omaha, Elavon, Global, Vantiv, BuyPass, First Data, and more.

Choosing Between Payment Gateway and Payment Processors

Though payment gateway allows easy set-up with the vendors’ eCommerce site or application, it can be quite expensive. The vendors can save on the extra expenses by skipping the payment gateway and integrating the processor only. Here are some factors that must be considered when choosing between the payment processor and payment gateway.

  • Transaction Volume: Payment processors charge fees based on transactions. Some payment processors charge a small amount of fee for a high volume of transactions.
  • Set up cost and time: The total cost and time required for the integration of the payment processor with a merchant’s application are higher than a payment gateway. Merchants need to complete the certification process to set up the payment processor. The role of the payment gateway is limited to approving the transaction requests from merchants and customers. That being said, its set-up time and cost is comparatively lower than payment processors. They only involve a single API layer that approves and processes the transactions.
  • Compliances: Payment processors come with strict compliances and PCI certified solutions. On the other hand, the payment gateway requires the merchants to comply with the ISO 8583 integration.
  • Settlement: Payment gateway manages the transaction settlement on behalf of the vendor whereas the payment processor asks vendors to forward the settlement request and manage the settlement file.

These were the major factors the merchants should consider before choosing between the Payment Gateway and Payment Processor.

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Technology

DOES A BUSINESS ERP SOFTWARE REALLY HELP YOUR STARTUP GROW?

Technology 5 Mins Read
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Running a startup? Well, you might be thinking that you don’t need an enterprise resource planning software as your company has just a few employees that you can easily count on fingers? But the truth is that you need customized business ERP software more than anyone else. Why? It’s because you will never know when your business picks up the pace and your staff gets overwhelmed with the quantum of workload. Being a start-up, you might not be in a position to say no to any client who is coming on your way! It would eventually bring more load to your employees as they would struggle to make pace with the growing no. of tasks.

That’s why a start-up needs ERP software to run the work in a well-managed environment right from the start. Let’s find out more about this topic in-depth.

Will Enterprise Resource Planning Software Work for a Startup?

Of course, an ERP software developed and customized to your startup needs with the help of a reliable ERP software development company works wonders for you! No matter if you have hundreds of employees working for you or only a handful of them, ERP software is crucial for conglomerates as well as startups. At the end of the day, whether a small business or an established one, every business wants to streamline its work process. ERP does all that for you!

In fact, it is more crucial for startups that want to build a strong reputation in the market. Being a startup, you might not want to lose even a single client and that could only be achieved if you are running your organization in a well-managed way with an ERP software. Let’s show you how your startup could flourish if you choose to invest in ERP software:

  1. Achieve Highest Productivity at the Workplace

No doubt, being productive is crucial for every business. But for a startup, productivity is the lifeline for survival. Being a start-up, you might be having a limited amount of projects but if you aren’t productive, you would not just lose money but also the client who expects you to deliver on time. Low productivity could postpone the deliveries to the future that could put your newly started business at a risk. However, if you choose a business ERP software, you could eliminate duplicate data, get rid of tedious tasks and would be able to complete your work at a faster pace achieving the highest productivity.

  1. Helps Make Tweaks at the Moments You Need the Most

Since all the work is saved in the cloud, your employees could access it anytime and anywhere that helps you make those much-needed last-minute amendments that could make or break your business. If you are working with a client in different time zones, you could ask your staff to get things done even when they are not in the office. The ERP solution is all about helping you with the tweaks that matter.

  1. Streamlines the Business Process to Help You Stay Organized

For startups, the biggest challenge is to stay organized with the business process. You can’t achieve that level of efficiency if you rely on paperwork and are doing things in a traditional way. But ERP software could streamline your business so that your staff doesn’t get confused while working. Any information you need will be right there in the database so they don’t have to chase it from desk to desk.

  1. Creates an Ideal Environment for Work Collaboration

A startup needs an ideal environment to collaborate and discuss project ideas. This is where a prestigious ERP software company plays the part by putting each and every department of your startup on a single ERP platform where every department gets the same information as the other. Updates reach to each department at the same time, avoiding any confusion and giving you the best data to discuss your project’s status.

  1. Better Management of Data and Ease of Access

The management of data is easier when you work on ERP software. All information that passes from one key person to the other is conveniently accessible to the other members on-board. The flow of data and information is easier and stays at one place which can be easily viewed by all the members in the loop.

  1. Track and Maintain Daily Business Transactions

You don’t even need to maintain a traditional ledger if you choose to work on ERP. Every business transaction that you do gets saved in the database. You could reveal the information whenever you need it. Work online on ERP and keep aside the worries of losing pieces of paper where you usually note down your important business information.

Conclusion

Having a customized business ERP software gives your startup a winning edge. It takes a lot of effort to gain a client and losing it just because you don’t stay organized isn’t worth at all. Invest in ERP software so that you could get the work orders completed and managed in an ideal ERP environment. Help your business flourish by taking the extra load off from your employees by automating and streamlining the business tasks with the enterprise resource planning software. You will never regret it!

Let us help your startup in streamlining the work process with the right ERP system implementation. Being a top-notch ERP software development company, we, IQMinds, have the latest ERP solution to help your startup take off your growth trajectory. Consult us if you want to take this forward for your startup’s promising future!

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