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migrate to real-time networks. Current models are focused
Insider’sreport on the credit-push approach to payments, where businesses
and consumers authorize their banks to push (send)
on payments money to billers or other entities. The ACH is commonly
used for credit-push payments. Checks represent debit-
pull payments: payees instruct their banks to collect (pull)
money from payors' bank accounts.

"Business end users have consistently found credit push
payments unacceptable for more than three decades, so
the road to business ubiquitous use of a new, credit push
payment will be long and expensive, if ever successful,"
David Walker, president of Tiller Endeavors LLC, and
Looking back on 2018 industry consultant Phyllis Meryerson wrote in a joint
and forward to 2019 comment letter to the Fed. Walker and Myerson are
former executives of the Electronic Check Clearing House
Organization.
By Patti Murphy Moving the needle on mobile POS payments
ProScribes Inc.
Mobile payments have been a hot topic for several years,
here was a hotbed of activity in the payments but even a proliferation of mobile payment apps has failed
space in 2018, and much of that will continue to significantly move the needle on adoption. This is likely
into the New Year. Activities I'll be keeping tabs to continue through 2019.
T on throughout 2019 include real-time payments,
mobile POS payments, merchant card acceptance costs and The market research firm Ipsos attributes sluggish growth
card acceptance by businesses selling cannabis products. to a mismatch of priorities among major stakeholders in the
mobile payments space. "The five major sectors enabling
Push for real-time payments a mobile POS payment – retailers, banks, fintech players,
credit card networks and processors – represent dozens of
The Federal Reserve continued to push for development top brands, each with their own business needs, agendas, BO CA
of new, faster payment systems in 2018, even as legacy and consumer appeal," the firm wrote. "But it gets even
payment systems, like the check and automated clearing more complicated when you consider consumers' needs, C AP ITAL
house (ACH) systems, continued to get better and faster. and those of merchants that accept card payments." PA R T NERS
Same-day ACH settlement is now a reality in the United
States, and ongoing digitization of check clearing has Ipsos expects frequency of usage to grow among existing
dramatically compressed the clearing cycle to the point users, who could be using their mobile wallets upwards of
that it is not uncommon for checks to settle on a same-day five times a week by 2020.
or next-day basis. Cash discounting & card surcharging Planning on expanding your offerings in

While several initiatives have emerged domestically Merchant complaints about the rising cost of card
that leverage electronic network technologies for faster acceptance are nothing new, but in 2018 a small but growing the new year? From $50,000 to $2,500,000,
payments, none can support real-time settlement. That's army of ISOs and merchant level salespeople began
because no real-time settlement mechanism that operates selling innovative cash discount programs that effectively
24/7/365 exists in the United States. The only national net- allow merchants to pass off the cost of card acceptance to BCP is ready to help finance your efforts.
settlement service, operated by the Fed, operates Monday customers who pay by card. Visa warned that many of
through Friday from 7:30 a.m. to 5:30 p.m. Eastern, and is these programs may violate its rules, but program sales
closed on national holidays. continue.
FAST FUNDING EASY APPROVAL FLEXIBLE TERMS
The Fed last year requested public comment on a series Meanwhile, the laws in several states that prohibit
of steps it could take to support real-time payments, merchants from surcharging credit card payments are for quick access to capital with minimal paperwork customized to your needs
including development of a real-time gross settlement under a legal cloud. A federal appeals court in August 2018
service operated by the Reserve Bank System on a 24/7/365 declared that the Texas law banning surcharges infringed
basis. But given the protracted nature of the Fed's decision upon merchants' First Amendment free speech rights. The As your capital growth partner, it is our job to make more options available to you. With over 15 years in the industry,
processes, it could take a year or more before it proposes ruling followed similar federal court rulings that rebuked Boca Capital Partners has the resources in place to accelerate your payment processing business growth with the help
specific services, and several additional years for work on the surcharging prohibitions in New York, California and
such a service to be completed. Florida. of our residual based lending program.

Even if the Fed moves toward real-time, 24/7/365 settlement, Most experts expect one or more of these cases will land
it's unclear whether significant volumes of payments will on the docket of the U.S. Supreme Court. The High Court
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