Re: Purchasing Cards - The Next Generation

2002-09-27 Thread terry . a . retter 


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.comcc: 
 
  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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Re: Purchasing Cards - The Next Generation

2002-09-27 Thread lynn . wheeler 


this is over simpliefied. banks already authenticate and authorize a
payment  both the authentication and authorization can cover a number
of things like fraud, balance, limits, etc. payment cards have been crafted
into that infrastructure expanding the number of things considered for
valid transaction.

even if some new 3rd party took 100 percent liability for authentication
and authorization ... the bank would probably continue to perform some
authentication and authorization (as well as various kinds of fraud)
checking ... possibly not being able to eliminate all duplication.

also it isn't clear how each of these employer/3rd parties which means
that each of these 3rd parties (employers) might either have to perform
explicit liability contracts with each possible merchant ... or form some
of new association which picked up the responsibility of some global
merchant contract under the auspices of the employer/3rd party/payment
association.

if the are performaning all the authentication and authorization ... and
the banks just moving money with no liability   there is some
possibility that such organizations then might come under the jurisdiction
of various national financial regulatory organizations ... subjecting these
organizations to some level of financial industry regulatory control.



  
  Anders Rundgren 
anders.rundgren@ To:  internet-payments  
   telia.com[EMAIL PROTECTED]  
  cc: 
 09/27/2002 02:18 Subject:  Purchasing Cards -
   PMThe Next Generation  
  
  




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