This seems to be a very elementary approach to payments, one that generally
takes the consumer model and fit it to business. Granted the p-card does
work for simple MRO supply purchases and some of the other direct material,
but a true business oriented payment systems should address the business
processes that are really in place.
Purchase orders and the resultant invoices are not normally on line item -
they are complex. Suppliers do not always fulfill an order with one
shipment. The receiving dock does not always accept a complete shipment.
The production line often disputes one or more items in a shipment.
Payments need to be able to support all of these occurrences.
Payment detail at the line item is essential as are dispute resolution and
charge back processes. Where is the real time, communications based
solution that addresses these issues?
Terry Retter
Director, Strategic Technology Services and Programs
Global Technology Centre
PricewaterhouseCoopers
650 688 6601
Anders Rundgren
<anders.rundgren@t To: internet-payments
<[EMAIL PROTECTED]>
elia.com> cc:
09/27/2002 01:18 Subject: Purchasing Cards - The Next
Generation
PM
Currently purchasing cards apparently rely on close ties with issuers as
well as supplier support.
.PAY (*), an "input specification" to a proposed OASIS payment
standard track, changes this by making each party do what they are
best at which means:
- Issuers/Banks pay
- Suppliers deliver goods or services
- Employers control/authorize/archive what their employees do
How does this work?
1. The merchant sends a "rich" transaction request to the buying
organization
2. The purchasing-server authenticates the purchaser
3. The purchasing-server checks the Level III-like items and authorizes if
ok
4. The purchasing-server sends the transaction request to a PSP/bank fo
fulfillment using ACH, credit-cards, debit-cards, etc.
5. The PSP/bank returns the complete transaction
6. The purchasing-server sends this back to the merchant
(there are some minor deviations but the principle is as above)
The net result is that the entire concept of a purchasing card
disappears, and a real-time B2B-transaction takes its place.
And how about those non-web-based transactions? Well,
unfortunately we will have to wait another 5 years or so
until the phone-makers heve recovered from the current
recession and see some light in the tunnel.
*) Reading only: http://buyer.x-obi.com/dotpaybuyer/faq.html
Running .PAY: https://buyer.x-obi.com/dotpaybuyer/buyer
cheers,
Anders
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