4 important numbers that you need to know, besides the winning combination for our weekly 4D lucky draws.
The Merchant Category Code (MCC Code) is a 4 digit number listed in the ISO 18245 standard for retail financial services. It categorises a business based on the types of goods or services it provides.
The MCC code determines the interchange rate charged by credit card networks like MasterCard, Visa, and American Express.
For instance, merchants such as charity organisations and educational institutions are entitled to a discounted interchange rate due to the nature of their scope. …
This article is written based on a Singapore payments report by Milieu, who conducted a study on >1,700 respondents, aged 16 and above, in June 2021. We will deep dive into how a pandemic has shaped Singaporeans’ payment preferences, and the motivations behind it.
Payment Services Directive (PSD2) is a set of changes that regulates electronic payments across Europe. It establishes a framework that allows more ways to exchange payments easily and securely.
The idea is to make consumer banking data available to 3rd parties such as merchants and fin-tech companies, which allows them to initiate payments without the intervention of financial institutions.
The purpose of PSD2 is to level the playing field and reduce the overall costs of payments for merchants and consumers.
Besides lower cost of payment acceptance and faster, direct access to funds, PSD2 benefits merchants by giving them access to…
Tokenisation protects sensitive data by replacing it with an algorithmically generated number called a token.
An example would be Credit card Tokenisation, where the customer’s Primary Account Number (PAN) is replaced with a string of numbers, called a token. These tokens will then be used to process payment through the internet, without exposing the bank account details.
One of the most widespread use cases of tokenisation today is in the Payments Processing industry.
Tokenisation allows users to store credit card information in Digital Wallets and E-commerce platforms to allow the card to be recharged for subscription billing and recurring payments…
Cash Advance is the process of obtaining cash using a credit card. With Cash Advance, you can instantly turn the credit limit on your Credit Card into cash. This would come in handy in times of emergency or if there’s a need for extra cash for your home furnishing, etc.
From the moment you take out a cash advance, you would have already incurred a hefty fee. Typically, there is a Cash Advance fee of $15 or 8% on the amount withdrawn, whichever is higher. For instance, if you took a $1000 cash advance, you would incur $80 upfront.
A Charge Card doesn’t charge interest, but requires the user to pay their balance in full upon receipt of their monthly statement. There is no pre-set spending limit, granting users access to the purchasing power for big ticket items.
Currently, American Express is the only major issuer of Charge Cards:
- American Express® Personal Card
- American Express® Platinum Card
- American Express® Gold Card
Charge cards require payment in full at the end of each month, whereas credit cards allow you to carry your balance from month to month.
Charge cards usually charge a higher annual fee, ranging from…
A Chargeback is a transaction reversal that happens in a payment dispute between a customer and an online merchant. It may sound like a refund, but they are slightly different.
With a chargeback, the customer contacts the card-issuing bank to reverse the transaction. If the card issuer confirms that the request is valid, funds are transferred from the merchant’s account to the customer. Whereas for a refund, the customer contacts the merchant directly within a refund policy.
Ethereum is a blockchain technology that distinguishes itself from bitcoin as a programmable network.
Ethereum has its own cryptocurrency, called Ether, and its own programming language, called Solidity. Ethereum users can create, publish, monetize, and use applications on the platform, with Ether as the payment currency.
While both Bitcoin and Ether are powered by the same technology called blockchain, Ethereum introduces another layer called the “Smart contract”.
Smart contracts are what make Ethereum so compelling. It doesn’t just track transactions, it programs them.
Developers put a code on the Ethereum blockchain that executes automatically once certain conditions are met. Some…
“Bitcoin is a peer-to-peer electronic cash system, that allows for online payments to be sent directly from one party to another without going through a financial institution.”
The Global Financial Crisis in 2008 has caused a lost of distrust between people and financial institutions. And Bitcoin solves the equation by removing the need of an intermediary in a digital transaction.
Bitcoin is a decentralised, public ledger. And the sole purpose of this ledger is to track a single asset, bitcoin.
As this digital ledger is distributed across the world, all copies of the ledger is in sync. If all participants…
In Singapore, Credit card remains as the undisputed king, with 1/3 of the respondents indicating Credit card as their preferred payment method.
Singaporeans tend to hold onto multiple credit cards, to clock the different kinds of rebates that banks have to offer. Some even signed up for the free gifts or cash rewards that comes with it.
An estimated 75% of respondents have used credit cards for their online and offline transactions in the month of April 2020. And this high card penetration drives much of the online shopping experience.