Scan Based Trading (SBT) - Carnegie Mellon University

Report
Task 16
Scan-Based Trading
and Electronic Payments
Michael I. Shamos, Ph.D., J.D.
Director, eBusiness Programs
Institute for Software Research
Carnegie Mellon University
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Outline
• Scan-Based Trading (SBT)
• Electronic Payment methods
– Wire transfer
– Credit transfer, ACH, International ACH
– PayPal
• B2B payments
• SWIFT (Society for Worldwide Interbank
Financial Telecommunication)
• Foreign exchange
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Traditional Supply Chain
Supplier
DC
Warehouse
BkRm
Store
CkOut
Consumer
Terms begin
scanner
Supplier's revenue point:
Retailer's revenue point:
Warehouse checkin
Point-of-sale scanner
SOURCE: TERESA BRASHEARS
Direct store Delivery (DSD)
Retail Store
Supplier
DC
BkRm
Merchandising
CkOut
Consumer
Terms begin
at delivery
scanner
Supplier's revenue point:
Retailer's revenue point:
Backroom checkin
Checkout scanner
SOURCE: TERESA BRASHEARS
Causes of Grocery Out of Stock
Store Personnel
Unaware of
OOS Condition Did Not Order
Item
Replenishment From
Warehouse
3%
54%
8%
16%
Backroom/Display
Inventory Not
Restocked To Shelf
Shelf Capacity
Inadequate
19%
Promotion, Forecasting
and Ordering
SOURCE: COCA COLA RETAILCOUNCIL INDEPENDENT STUDY, 1996
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Scan Based Trading (SBT)
Retailer
Supplier
DC
BkRm
Merchandising
CkOut
Consumer
Terms begin
X
scanner
Supplier and retailer revenue:
TIME-LINKED TO POS
ALMOST SIMULTANEOUS
SOURCE: TERESA BRASHEARS
Scan-Based Trading
• Supplier owns goods until they are sold
• Supplier reports quantity delivered; no store checkin
• When goods are scanned at point-of sale, supplier
AND retailer are both paid
• Risk of shrinkage (loss, theft) is shared
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Scan-Based Trading Benefits
•
•
•
•
•
•
•
•
Grocery Manufacturers of America study (2000)
3-4% increase in sales
100% elimination of invoice deductions
Retailer savings of $5 - $10K per supplier per 100
stores (supplier saves $4K - $20K per 100 stores)
Shrink controlled at 0.3%
Back-door check-in time savings of 10-15 minutes
per load (supplier saves 20-25 minutes)
Wal-Mark is the largest grocery chain in the U.S.
Wal-Mart keeps $50 billion of goods (total) in
inventory
SOURCE: viaLINK
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Wal-Mart Supply Chain Management
Satellite
Retailer HQ
POMS
MDSS
Data
Scan
Data
Supplier HQ
R.L.D.S.
Warehouse
shipper
Warehouse
Store
P.O.S.
Scanning
MDSS = MGMT DECISION SUPPORT SYSTEM
POMS = PRODUCTION & OPS MGMT SYSTEM
POS = POINT OF SALE
RLDS = RAPID LEAN DEPLOYMENT SYSTEM
SOURCE: HAK & PARTNERS
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Paying for Scan-Based Trading
• Large retailers may have more than 1 million SKUs
(stock-keeping units) and 100,000 suppliers
• Making daily payments to so many suppliers is a
major payment problem
• Each supplier my give different discounts based on
its contract with Wal-Mart
• Need data to compute the payments
• Need a mechanism to make the payments in many
currencies
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
The Fundamental B2B Payment Problem
Buyer’s
Bank
Payment
Seller’s
Bank
Reconciliation of
payment/trade
Reconciliation of
payment/trade
Messaging &
Trade Information
SELLER
BUYER
SOURCE: DEBRA MITTERER
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Goal of a Payment System
• To allow the recipient to obtain money in his bank
account (or an account from which he can easily
transfer money)
• Payment in real money is called settlement
• Most payments are not settled individually
– Example: bank cheques, ATM withdrawals – too small for
separate transfers of funds; batched for efficiency
• Batching to determine how much money must be
paid is called clearance or clearing
• Payment systems always provide for settlement
• Many payment systems also involve clearing
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Central Banks
• Legal tender (“real money”) is issued by central banks
• Every currency is issued by a central bank
• The U.S. central bank is the Federal Reserve Bank
– PRC: People’s Bank of China (PBOC)
– India: Bank of India
– Singapore: Monetary Authority of Singapore (MAS)
• Commercial banks hold very little cash (just enough
for tellers and ATMs)
• Commercial banks have accounts at the central bank
• Most money is not in cash, but is a ledger entry
(account) in a database at the central bank
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
How Commercial Banks Pay Each Other
• They give instructions to the central bank to “move
money” by updating their accounts in the central bank
• If Citibank wants to move USD 1 million to PNCBank,
it sends an order to the central bank:
ACCOUNTS AT
THE CENTRAL BANK
ACCOUNTS AT
THE CENTRAL BANK
USD
1,000,000
PNCBANK
BANK A
...
BANK Z
CITIBANK
1,134,299,321
2,107,071,775
BEFORE TRANSFER
SCAN-BASED TRADING AND EPAYMENT
PNCBANK
BANK A
...
BANK Z
CITIBANK
1,135,299,321
2,106,071,775
AFTER TRANSFER
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Fedwire: How Banks Pay Each Other
• Central banks maintain “real-time gross settlement
systems (RTGS) to execute payment instructions
• The Federal Reserve RTGS is called Fedwire
• “Real-time” means less than 1 minute
• “Gross settlement” means that each order is
processed as it is received. No batching
• These payments are called “wire transfers”
• Expensive: up to USD 50 per payment Used mainly
for large amounts (average: USD 3.5M)
• Transfers cannot be made over the Internet (for
security reasons)
• Banks usually have dedicated communication lines
to the central bank
Net Settlement
• Most payments are not made in real-time
• The data is sent to a clearing house
• Clearing house keeps track of the net amounts
owed or owing from bank to bank
• Each transaction causes these amounts to be
adjusted
• After a clearing period (e.g. 1 day), each bank is
told the total amount it must pay or will receive
• Banks then use RTGS (in the U.S., Fedwire) to
settle their debts
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Net Settlement
• Many payments are small and do not have to be
made in real-time. The cost of RTGS is not justified
• Payments can be batch and settlement made for
the whole batch later
• Net settlement through an automated clearing
house (ACH) is used for:
– credit/debit cards
– checks
– ATM withdrawals, credit transfers
• BUT: there is no upper limit on ACH payments
• Cost is low: about USD 0.10 per payment, 500
times cheaper than RTGS
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Payment Orders (Checks)
DATE
MAKER (DRAWER)
CHECK
NUMBER
PAYEE
AMOUNT
CURRENCY
DRAWEE
BANK
DRAWEE BANK
NUMBER
ACCOUNT NUMBER
THIS CHECK IS AN ORDER TO MELLON BANK TO
PAY $100 TO PAYEE OR HIS TRANSFEREE FROM
THE CARNEGIE MELLON UNIVERSITY ACCOUNT
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
AUTHORIZED
SIGNATURE OF
MAKER’S AGENT
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Clearing Payment Orders (Check)
CUSTOMER CMU
OF MELLON BANK
1. CMU SENDS CHECK TO SHAMOS
“PAY SHAMOS $100”
9. MELLON SENDS
CHECK BACK TO CMU
MELLON BANK
7. MELLON
DEDUCTS $100
FROM CMU
ACCOUNT
2. SHAMOS DEPOSITS
CHECK AT CITI
8. CLEARING HOUSE
SENDS CHECK TO
MELLON
CUSTOMER A
CUSTOMER CMU -100
...
CUSTOMER Y
CUSTOMER Z
CITIBANK
4. CITI SENDS CHECK
TO CLEARING HOUSE
CUSTOMER A
CUSTOMER B
...
SHAMOS
CUSTOMER Z
CLEARING HOUSE
6. CLEARING
HOUSE SENDS
MELLON
DEBIT INFO
CUSTOMER SHAMOS
OF CITIBANK
MELLON
BANK A
...
BANK Z
CITIBANK
-100
3. CITIBANK CREDITS
SHAMOS WITH $100
+100
5. CLEARING HOUSE ADDS $100 TO CITI,
SUBTRACTS $100 FROM MELLON
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
+100
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Settling Payment Orders (Checks)
1. AT END OF DAY, EACH
BANK HAS A NET POSITIVE
OR NEGATIVE CLEARING
HOUSE BALANCE
6. CLEARING HOUSE PAYS
MELLON $34,299,321
MELLON BANK
CUSTOMER A -15085
CUSTOMER CMU +3167
...
CUSTOMER Y +728103
CUSTOMER Z +35529
5. CLEARING HOUSE ADVISES
MELLON IT WILL
RECEIVE $34,299,321
REAL-TIME GROSS
SETTLEMENT SYSTEM
(FEDWIRE)
MELLON
+34,299,321
BANK A
...
BANK Z
CITIBANK
-107,071,775
CLEARING
+107,071,775
HOUSE
CLEARING HOUSE
(FEDERAL RESERVE)
MELLON
BANK A
...
BANK Z
CITIBANK
SCAN-BASED TRADING AND EPAYMENT
+34,299,321
2. BANKS WITH NEGATIVE
BALANCES MUST PAY;
THOSE WITH POSITIVE
BALANCES RECEIVE
MONEY
4. CITI PAYS THE CLEARING
HOUSE THROUGH RTGS
CITIBANK
+2786
CUSTOMER A
CUSTOMER B -988713
...
SHAMOS
+100
CUSTOMER Z -31872
3. CLEARING HOUSE INFORMS
CITI IT MUST PAY $107,071,775
-107,071,775
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
The “Automated Clearing House”
MAKER (DRAWER)
DATE
PAYEE
The paper check is just
a carrier of information.
CHECK
NUMBER
Electronic transmission is
better.
AMOUNT
CURRENCY
DRAWEE
BANK
DRAWEE BANK
NUMBER
AUTHORIZED
SIGNATURE OF
MAKER’S AGENT
DRAWER
ACCOUNT
NUMBER
We dematerialize the check
(remove the paper).
06130018184310143700000000010000USD065200356425020010130
DRAWEE
BANK
NUMBER
DRAWER
ACCOUNT
NUMBER
CHECK
NUMBER
AMOUNT
CURRENCY
PAYEE
BANK
NUMBER
PAYEE
ACCOUNT
NUMBER
DATE
Only the digital information is sent to the clearing house
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Foreign Exchange
• Every bank must have an account at the central bank
(or with another bank that has a central account)
• The account is (usually) denominated in that
country’s currency and is used to settle obligations in
that currency
• A foreign exchange transaction requires two
settlements, one in each currency
• Therefore, two countries’ central banks (or settlement
systems) are involved
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Foreign Exchange
• Currency = money of a central bank
• Every bank account is denominated in ONE currency
• All currencies have three-letter ISO currency codes:
– USD (U.S. dollar)
– GBP (Great Britain pound)
– HKD (Hong Kong dollar)
JPY (Japan yen)
CHF (Swiss franc)
EUR (Euro)
• Usually, the first two letters indicate the country; third
letter is the first letter of the currency name
• Foreign exchange is a barter transaction
– To buy GBP for USD, buyer has to find someone
with GBP who wants USD
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Foreign Exchange Example
• RETAILER ASKS ITS
BANK B TO BUY GBP
FROM BANK S
• US RETAILER OWES UK
FACTORY IN UK 1M GBP
• BANK B MUST HAVE
A GBP ACCOUNT IN
A UK BANK
• RETAILER ONLY HAS USD; • BUT WHERE CAN
FACTORY DEMANDS GBP
BANK B PUT GBP?
• RETAILER MUST BUY GBP
1M GBP
C
B
POUND
BUYER’S
BANK
BANK C NOTIFIES
BANK B: “1M GBP
BANK B’S
IS NOW IN
CORRESPONDENT
YOUR ACCOUNT
WANTS TO
BUY 1M GBP
1.6M
USD
BANK B MOVES
1.6M USD TO
ACCOUNT S
IN BANK T
T
US
RETAILER
BANK S’S
CORRESPONDENT
• BANK S MUST HAVE
A USD ACCOUNT IN
A US BANK T
BANK S MOVES
1M GBP TO
ACCOUNT B
IN BANK C
BANK T NOTIFIES BANK S
“1.6M USD IS NOW IN
YOUR ACCOUNT”
UK
FACTORY
S
POUND
SELLER’S
BANK
WILLING TO
SELL 1M GBP
FOR 1.6M USD
• HOW CAN BANK S
RECEIVE USD?
Foreign Exchange Example
US BANKS
BANK B (US)
WANTS TO BUY
1 MILLION GBP
FOR USD
BANK T (US)
(NOSTRO ACCOUNT)
BANK S
USD ACCOUNT
BANK C (UK)
BANK B
GBP ACCOUNT
(NOSTRO ACCOUNT)
BANK S (UK)
WILLING TO SELL
1 MILLION GBP
FOR USD
UK BANKS
US FEDERAL
RESERVE BANK
THE BANK
OF ENGLAND
BANK B USD ACCOUNT
BANK S GBP ACCOUNT
BANK T USD ACCOUNT
BANK C GBP ACCOUNT
SETTLEMENT ONE:
BANK B PAYS 1.6
MILLION USD TO BANK T
CENTRAL
BANKS
SELLER S NOW HAS 1.6
MILLION USD IN BANK T
SCAN-BASED TRADING AND EPAYMENT
SETTLEMENT TWO:
BANK S TRANSFERS
1 MILLION GBP TO BANK C
BUYER B NOW HAS 1
MILLION GBP IN BANK C
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
International ACH
A U.S. company with USD paying a German supplier with EUR
CPA = Canadian Payments Association
Equens – a Dutch payment processor
IAT = International ACH Transaction
IPF = International Payments Framework
SOURCE: NACHA
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Financial Messaging
• Money never actually moves, except in cash form
• Most money is transferred by sending messages –
payment orders – to and from banks
• Banks also send messages to their customers to
advise of payments
• Financial messaging is ESSENTIAL to payment
systems
• BUT: a financial message is NOT a settlement
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
S.W.I.F.T.
• Society for Worldwide Interbank Financial
Telecommunication
• Non-profit, headquarters in Brussels
• Financial messaging system ONLY
– NOT A PAYMENT SYSTEM
– No accounts, no clearing, no settlement
– Settlement must occur separately
• 4.6 billion messages/yr; USD 7 trillion value per day
• Average volume: 14M messages/day
• Cost ~ $0.20 per message; transit time 20 seconds
• Private IP network, NOT the Internet
• Uses swiftML, interoperable with ebXML
SOURCE: SWIFT
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
SWIFT Network (Feb. 2012)
10,000financial institutions
212 countries
Peak 27M messages/day
4.4 billion messages / year
99.977 % availability
7 trillion USD/day
Connected
Not connected
SOURCE:
SWIFT
Slide
29
A SWIFT Message
103 = REMITTANCE
108 = MESSAGE REF
:20
:23B
:32A
:50K
TRANSACTION REF #
BANK OPERATION: CREDIT
VALUE DATE, CURRENCY, AMOUNT
ORDERING INSTITUTION
:57A ACCOUNT WITH INSTITUTION
:59 RECIPIENT
:70 REMITTANCE INFORMATION, REASON FOR PAYMENT
:71A DETAILS OF CHARGES.
SHA = SHARED TRANSFER CHARGES
MAC = MESSAGE AUTHENTICATION CODE
CHK = CHECKSUM
SWIFT E-payments Plus System
Buyer's bank
Seller's bank
Payment
SWIFTNet
Link
Payments
application
SWIFTNet
Link
SWIFTNet
Payment
Initiation
Payments
application
Initiation
Confirmation
Initiation
Response
e-paymentPlus
TrustAct
Link
Payment
Initiation
Initiation
Confirmation
Initiation
Confirmation
RemittanceRemittance
advice
advice
Remittance advice
TrustAct Server
TrustAct
Link
Invoices
Buyer
Internet
Seller
SOURCE:
SWIFT
Slide
31
SWIFT Message Types
SEE ALL MESSAGE TYPES
Bridging Domestic Payments
Systems
European Retailer Payment to U.S. Supplier
Europe
European Bank’s
Correspondent
Originating
Bank
SWIFT MT 100/103
2
Originator
U.S.
$
Federal
Reserve
Beneficiary
Bank
$
8
Beneficiary
SOURCE: MID-AMERICA PAYMENT EXCHANGE
International Payments with SWIFT
Company X
Invoice
Company A
US
UK
Credit Advice
Wire transfer
request
London
Bank
Debit
Company A
SWIFT instruction
MT103 (1st step)
SWIFT Payment
order (2nd step)
London bank’s
correspondent
in New York
Detroit
Bank
Credit
Company X
Credit advice
(4th step)
Payment via
CHIPS or
FEDWIRE
(3rd step)
Correspondent
of Detroit Bank
in New York
SOURCE: ROYAL BANK OF SCOTLAND
PayPal
•
•
•
•
•
•
•
•
•
Wholly owned by eBay
> 250M accounts, 50% “active” (Alipay has 500M)
Accepted at 100,000 business sites
USD 200B processed per year
25% cross-border
193 countries (up from 56 six years ago)
26 currencies (up from 6 six years ago)
7% of U.S. online payment
Currently limited to USD 10,000 per payment
– ASSUME THIS LIMIT WILL BE REMOVED
SOURCE: PAYPAL
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
PayPal
•
•
•
•
•
Real-time gross “settlement” system
Credit card hub, mobile payments
Bookkeeping & accounting system
Low-value foreign exchange system
Massive expansion in mobile
–
–
–
–
–
2010
2011
2012
2013
2014
USD 1 billion
USD 4 billion
USD 14 billion (twice as much as estimated)
USD 20 billion
USD 30 billion (expected)
SOURCE: PAYPAL
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
PayPal Structure
PUBLIC COMPANY
eBay
BETWEEN TWO PAYPAL
USERS, TRANSACTIONS
ARE PURELY BOOK ENTRIES
ONLY MAINTAINS LEDGERS
NO MOVEMENT OF REAL
MONEY WITHIN PAYPAL
PayPal
USER INTERACTS
WITH PAYPAL
THROUGH BROWSER
GE Bank
IF REAL MONEY MUST
MOVE, PAYPAL SENDS
INSTRUCTIONS TO ITS
BANK
PAYPAL’s BANK
INTERACTS WITH
BANKING SYSTEM
THROUGH ACH
User’s Bank
User
USER MAINTAINS NORMAL
RELATIONS WITH HIS BANK
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
PayPal Structure
User
PayPal Servers
PayPal Ledger
PATTY
INTERNET
1000
SHAMOS
0
BANKING SYSTEM:
Automated
Clearing
House
PayPal’s
Bank
Account
(GE Bank)
User’s
Bank
Putting Money Into PayPal
User
PayPal Servers
INTERNET
PayPal Ledger
PATTY
1000
SHAMOS
“PLEASE ADD $2500
TO MY PAYPAL
ACCOUNT”
0
“PLEASE TAKE
$2500 FROM
SHAMOS’ BANK”
“ADD $2500
TO SHAMOS
IN LEDGER
CLEARING HOUSE
TELLS BANK
AMOUNT OWED
ACH DEBIT
Automated
Clearing
House
PayPal’s
Bank
Account
(GE Bank)
CLEARING HOUSE
PAYS PAYPAL’S
BANK
BANK PAYS
CLEARING HOUSE
User’s
Bank
Putting Money Into PayPal
User
PayPal Servers
INTERNET
PayPal Ledger
PATTY
1000
SHAMOS
2500
“PLEASE ADD $2500
TO MY PAYPAL
ACCOUNT”
“PLEASE TAKE
$2500 FROM
SHAMOS’ BANK”
“ADD $2500
TO SHAMOS
IN LEDGER
CLEARING HOUSE
TELLS BANK
AMOUNT OWED
ACH DEBIT
Automated
Clearing
House
PayPal’s
Bank
Account
(GE Bank)
CLEARING HOUSE
PAYS PAYPAL’S
BANK
BANK PAYS
CLEARING HOUSE
User’s
Bank
Paying A PayPal User
User
PayPal Servers
PayPal Ledger
PATTY
1000
SHAMOS
2500
INTERNET
“PLEASE PAY
PATTY $500”
Automated
Clearing
House
PayPal’s
Bank
Account
(GE Bank)
User’s
Bank
Paying A PayPal User
User
PayPal Servers
PayPal Ledger
PATTY
1500
SHAMOS
2000
INTERNET
“PLEASE PAY
PATTY $500”
Automated
Clearing
House
PayPal’s
Bank
Account
(GE Bank)
User’s
Bank
PayPal
• It’s a big disk drive!
- $500
+ $500
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
International PayPal
• Maintain accounts in 25 currencies
• AUD
• BRL
• CAD
• CNY
• CZK
• DKK
• EUR
• GBP
• HKD
• HUF
• ILS
• JPY
• MYR
Australian Dollar
Brazilian Real *
Canadian Dollar
Chinese Yuan
Czech Koruna
Danish Krone
Euro
Great Britain Pound
Hong Kong Dollar
Hungarian Forint
Israeli New Shekel
Japanese Yen
Malaysian Ringgit *
SCAN-BASED TRADING AND EPAYMENT
• MXN
• NOK
• NZD
• PHP
• PLN
• SEK
• SGD
• CHF
• TWD
• THB
• TKY
• USD
JUNE 9, 2014
Mexican Peso
Norwegian Kroner
New Zealand Dollar
Philippine Peso
Polish Złoty
Swedish Krona
Singapore Dollar
Swiss Franc
Taiwan Dollar
Thai Bhat
Turkish Lira *
U.S. Dollar
*In-country only
SOURCE: PAYPAL
COPYRIGHT © 2014 MICHAEL I. SHAMOS
B2B Payments -- HSBC Hexagon
• Another possibility (not using SWIFT directly) is to
communicate orders to a bank with branches around
the world,
like HSBC
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
HSBC Hexagon
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
HSBC Hexagon Payment
Recommended Task 16
Payment Methods
•
•
•
•
•
Wire transfer (Fedwire or equivalent)
Credit transfer (ACH credit)
International ACH (for cross-border payments)
PayPal
Multinational commercial bank
• You may use another method if you want to, BUT if
you do not use one (or more) of the above you will
need to justify your choice thoroughly
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS
Q&A
SCAN-BASED TRADING AND EPAYMENT
JUNE 9, 2014
COPYRIGHT © 2014 MICHAEL I. SHAMOS

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