The World of GRC for Embedded Payments
The world of embedded payments is rapidly evolving, transforming how businesses and consumers interact financially within digital platforms. From seamless e-commerce transactions to in-app purchases, embedded payments offer convenience and speed, integrating financial services directly into software and platforms. However, as with any financial service, Governance, Risk, and Compliance (GRC) considerations are critical to ensure security, protect consumers, and maintain the integrity of the payment system.
How FinTech Companies Use Machine Learning to Counter Payments Fraud
Machine learning represents a frontier in the fight against financial fraud, offering powerful tools for FinTech companies to protect themselves and their customers. By leveraging ML, these companies can enhance their detection capabilities, reduce losses from fraud, and maintain the trust of their customers. As technology and fraud tactics evolve, the role of ML in securing digital financial transactions will undoubtedly grow, highlighting the importance of continuous innovation and adaptation in the sector.
The confusing SAR requirement for an unregistered MSB
Work with a Sponsor that will allow the Payment Service Provider or Payment Facilitator to file the Suspicious Activity Report on their behalf. This addresses both compliance concerns and improves the relationship between the Sponsor Bank and the Third Party (MSB, PSP, PFAC) who is working directly with the Merchant.
Demystifying Visa GARS Audits: Navigating Global Acquirer Risk Standards
By following these steps, you should be well-prepared for a Visa GARS audit, reducing the likelihood of any issues arising during the process. RPY Innovations has assisted quite a few Acquirers, Payment Service Providers, ISO’s and Payment Facilitators get ready for a Visa GARs and we can help you as well.
Unlocking Reduced Obligations: How New Payment Facilitation Models Can Benefit
The payment facilitation landscape is shifting towards models that allow businesses to reduce their regulatory and operational burdens. By leveraging third-party providers, advanced technologies, and focusing on their core operations, businesses can still benefit from the PayFac model while minimizing obligations. This trend reflects a strategic approach to handling payments efficiently and effectively in a complex regulatory environment.
Trends in Payment Facilitation
The payment facilitation landscape is shifting towards models that allow businesses to reduce their regulatory and operational burdens. By leveraging third-party providers, advanced technologies, and focusing on their core operations, businesses can still benefit from the PayFac model while minimizing obligations. This trend reflects a strategic approach to handling payments efficiently and effectively in a complex regulatory environment.
Use of Reserves
The use of reserves and guarantees is a well-established risk management practice in the financial industry, including within embedded payment organizations. It is not exclusive to ISO (Independent Sales Organization) or a trick, but rather a standard method to mitigate financial risks.
Which is best: Using an FBO Account or becoming a Money Transmitter
Payment facilitators and other PSPs who wish to become part of the funds flow to their merchant clients (in other words, become responsible for moving settlement funds to merchants) must decide how to do so in compliant fashion. Taking possession of and transmitting funds that belong to another party is regulated by various government authorities and the activity itself must be licensed on a state or provincial level. Payment companies therefore must obtain the necessary licenses and become a Money Transmitter or leverage their sponsor bank’s license through use of an FBO (For Benefit Of) account structure.
