A new story from The Product Podcast


Checkout experience making sure that when a user is presenting their payment method information you know do they have the relevant relevant timid method information asian at this point so a peon in this nation need would actually have their their views there is on on both sides of of of these spectra and they're also have a good understanding or some somewhat of a decent understanding what process what their processors are doing for then eh and it also have a good understanding of not just the market but what kind of financial tools are financial instruments you're you their consumer survey using so i before we can jump a little bit further i want to talk about the need for right this is private schools let's let's let's do a payment school kind of thing relate a few minutes therefore different high level categories of what penance looks like on the consumer business the business and this is where this is something that you all know this is where your pain and provide an and inviting a service from a business find the product from a business then there's agency the worst of it with winches were a business is paint a an an individual your your this is equal to your employer paying your your salary or ages and this is also where in gig economy of companies are paying thinking workers then we have to p which has grown in popularity over the last few years and capelin men more or pretty in popular very relevant in this market and the need to be this is where businesses are paying businesses or service that the offer right you know on your business you're you're paying your members you're paying your caters you're paying the furniture's in this room and let's see talk about see to be a little bit more typical use cases in this as we'll start with in store to store buying something in commerce i i'll give an example over straightforward use this is example throughout the throughout the talk here i got a hat for one of my child that's pretty straightforward ecommerce karn files is if where you're storing your payment methods with one of your providers and when you're using their services you're not entering that information every time and they're also believe that further remove that friction that might happen every time you go you go bill and wanted to pay and lastly recurring trendies payments this is where you know the typical net flicks is storing bring your commitment that information and every like without you even interacting with them they're going to fill you for whatever the jewish in is that's been committed between do you envy ending merchants i touch a beach c. a. b. two b. i would like to call this is a pretty not a big market as well there's there are one twenty seven trillion dollar payments sets that happens overby too but even today b. two b. payments are still done with paper checks and beauty involved you know accounts payable organization of one of one company talking to congress eveb invoice is being generated invoices being meal be and and then you know either someone writes a check or in the recent years people have started using credit cards bank payments or ACH payments in the US so there's it's a lotta potential in in in b. two b. for digital pinkus acidic to the most common inform seemed to be on let's talk through what a typical payment flow looks like and i've tried to appeal some layers office complex you know interaction that happens on if you look at a very physical infraction no i'm i'm looking to buy a lender of the i know what can have had had i wanna compare competitors i know who who has a sheep is one who has the best polars go to their checkout cage for the hills the order is placed in an idea the product on the left side you have consumer in the right side of emerging so humor mesa payment at some point the merchant gets her came in as well and as a consumer as in carpool for the company that i had my card from the bank that i get my heart from let's let's say i used my capital on a car they're going to send me a statement at at the end of the billing cycle and i'm going to pay off that this is like a flawed everyone understands phyllis tape the part between what happens when you provider details and when you get confirmation complex with interactions it starts with the the merchant center payment information payment processor or payment gateway they could be the same or they could be different depending on the thing the fares are the pieman processors case death knell staff it's a visa card and sends it to the right code screen or the cartwright so that transaction get to visa visa now identifies that hey is a car was issued by capitol one and they they identified this by something hold of information which is the first six digits on your part disadvantage permission and they ordered initial official bank capital one now going to look up many they know that the transaction was from me and then we're going to see if my credit is the transaction when still fit under my credit limit if my credit limit one hundred dollars i've purchased forty dollars and still good to go for ten dollars transaction if it was abandoned com you'll receive it if i still have money in my bank account to approve that today say close all i approve this transaction it goes back to the scene that goes back for the payment processor sir and in the end the the it makes back into the margin and this and they say look all i know i'll get money transaction i'm going to approve this otter ought to convert the customer or the cardholder perspective if you look at it from a merchant perspective now they need to receive cash for the powder so how does that happen on similar to how there is a issuing issuing bank that works with consumer convoy workers in this case there's also a bank which were works with business or merchants and that's a finding bang and they provide services to the merchant treasury services to the rich and so ended in this example breaking down the merchant side of things capital on a few things has had all these transactions that they have received for all of their cardholders once a day they'll go through it and they will collector transactions were what's called deal bashes elements fight each card brent so they'll they'll create a separate badge for visa matt for mastercard and my action would be included and sent to be in a in a batch so visa talks to the car scene is visa the visa talks to the pan processor and providing that information the payment processor talks to the human processor and your prime beg at this point knows which margin is associated with the team in the back or these separate out how and know that this pretty hack lender may ten transactions which each equal for simplicity each equals ten dollars and this is how much they need to be paid out at a given day there's lot complexity to this at every point are fees associated card issuing banks charge something called interchange fee which is which really depends on the type of car do have is it a credit card is a debit card so dinner works harder hart was mcdonald's quarterbacks was fargo's and applying bench cheeses and acquiring banks so they also service issuing banks as well and there were other neighbor couple and then very well i i thought i was talking about was i interchanged figures and there are different kinds of fees and where are those these are deducted and and how those lease fees apply the merchan- howard those fees communicated at different points in this in this interaction is layered complexity and then there's different layers of complexity if you are no market where jesse has to be applied to the products and services that seoul how you calculate tax report on hats those are a couple of things that i like to call up but there's a lot of other season that goes on between using tractions as well so just talking talking true some of these flows and kennedy going back to of payments in each of these organizations it does you get a sense of where how all of this together it if we if we think about find.

Coming up next