Disintermediation of Payments Reduces Fraud and Error


For the longest time, the payment system between you, your credit card, the store or merchant and the banks has been incredibly complex and prone to error or fraud.  Due to this system, companies and consumers across the country have paid more than their fair share for these errors.  The multi-party payment system is just about to change.

Fortunately, there is a new system for Disintermediation of Payments via Netclearance Systems. In this system, payment is direct and only requires three parties, so there is much less chance for fraud or error.  Under the old (current) system, payment flows from the buyer the credit card network (Visa or Mastercard), to their issuing bank , then to the merchant's bank, to the payment processor and finally to the merchant themselves.  This complicated process is fraught with risk and riddle with middle-men fees.  

Under the new Netclearance mBeaconPay solution, the only parties involved are the Consumer, the Merchant and the Bank - a three-party model.  Unlike other credit card based mobile payments systems such as Apple Pay, Android Pay, Samsung Pay or PayPal, Netclearance has created an app-based mobile payment solution that removes the traditional payment processor thru a direct connection between the consumer, the merchant and the bank.  As long as the consumer downloads the free app on to their smart phone, they can simply place it over the merchant's Netclearance payment system and instantly transfer cash from their account to the merchant's account.  No need to wait for credit card confirmation or sign a piece of paper confirming the transaction.  The new system removes several of the fees normally levied in a traditional card payment  model.

In fact, the system has already taken off in the Nordic countries with over 20,000 locations enabled, such as McDonald's, Starbucks, Danish Supermarket and others are getting in on the action.

For more information please contact us.  We will provide a detailed overview of the new payment system and how it can help you reduce fraud and increase profits.