Financial Transaction Processing

Financial Transaction Processing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide services such as credit card processing, electronic funds transfer, and check clearing. Major companies include Bread Financial, Fiserv, Heartland Payment Systems, Mastercard, Visa, and Western Union (all based in the US), as well as Cielo (Brazil), Moneris (Canada), and UnionPay International (China).

COMPETITIVE LANDSCAPE

Technology is transforming the financial transaction processing industry and consumers' interactions with money. The use of cash as a payment method is plummeting, although it remains the predominant form of payment for small purchases.

PRODUCTS, OPERATIONS & TECHNOLOGY

Processors provide transaction services to banks that issue credit cards and to merchants that accept credit card payments. Merchant products include authorizing, capturing, and settling merchants’ credit and debit card transactions, and handling chargebacks. Chargebacks occur when a consumer disputes a charge and charges it back to the merchant. Processors also sell or lease point-of-sale (POS) terminals. Card issuer products include transaction authorization and posting, statement generation and printing, and card embossing.