Page 33 - GS220402
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Education
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                                                                With the transition to next-day payout, the acquirers float
                                                                was reduced, as they were essentially paying out to the
                            More on RTP                         merchant  what  they  were  collecting  and  not  benefiting
                                                                from the one day hold on funds.  Should acquirers move to
          For additional insights on real-time payments published in The Green   RTP, this will further increase their cost of funds as, in the
          Sheet, see the following:                             context of the existing card networks' settlement, they will
                                                                be paying out prior to receiving funds and having to fund
                                                                interchange. This becomes even more costly as interest
             •  "Moving toward a real-time payments environment" by Dr. Jack   rates rise.
               T. Baldwin, Oct. 11, 2021, issue 21:10:02, https://bit.ly/3rq6Z8Y
                                                                Regardless, RTP will be a vital solution for many
             •  "A coming of age for real-time payments," by Patti Murphy, July   merchants, especially in instances where its cost may
               12, 2021, issue 21:07:02, https://bit.ly/37f61FXP  be passed along. Payfacs should consider its potential in
                                                                winning clients and building a brand to meet the coming
             •  "The truth about real-time payments," by Brandes Elitch, May   demand.
               13, 2019, issue 19:05:01, https://bit.ly/3EfOWaV
                                                                As founder of Humboldt Merchant Services, co-founder of Eureka
                                                                Payments, and a former executive for such payments innovators as
            • Day 1:  Acquirer receives settlement              WePay, a division of JPMorgan Chase, Ken Musante has experience in
            • Day 2:  Merchant paid                             all aspects of successful ISO building. He has also served as an expert
                                                                witness on numerous complex civil and criminal cases in payments,
        This allowed the acquirer to always have at least one day's   a service he provides, along with consulting on merchant services
        deposit on hand. This was important as, in the context of   and platforms, as founder of Napa Payments and Consulting,  www.
        pass-through pricing, acquirers pay the merchant the full   napapaymentsandconsulting.com. Contact  him at  kenm@napapay-
        amount of their deposits and collect their discount and   mentsandconsulting.com,  707 601 7656 or  www.linkedin.com/in/
        interchange at month-end.                               ken-musante-us/.
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