Payment Processors. Mobile payment. Mobile payment, also referred to as mobile money, mobile money transfer, and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history,[1] it is only recently that the technology to support such systems has become widely available.
Mobile payment is being adopted all over the world in different ways.[2][3] In 2008, the combined market for all types of mobile payments was projected to reach more than $600B globally by 2013,[4] which would be double the figure as of February, 2011.[5] The mobile payment market for goods and services, excluding contactless Near Field Communication or NFC transactions and money transfers, is expected to exceed $300B globally by 2013.[6] Models[edit]
Bank for International Settlements. Operational risk. An operational risk is defined as a risk incurred by an organisation's internal activities. Operational risk is the broad discipline focusing on the risks arising from the people, systems and processes through which a company operates. It can also include other classes of risk, such as fraud, legal risks, physical or environmental risks. A widely used definition of operational risk is the one contained in the Basel II regulations. This definition states that operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.[1] Operational risk management differs from other types of risk, because it is not used to generate profit (e.g. credit risk is exploited by lending institutions to create profit, market risk is exploited by traders and fund managers, and insurance risk is exploited by insurers).
Background[edit] Definition[edit] The Basel II Committee defines operational risk as: Scope exclusions[edit] See also[edit] Credit risk. Types of credit risk[edit] Credit risk can be classified as follows:[3] Assessing credit risk[edit] Significant resources and sophisticated programs are used to analyze and manage risk.[4] Some companies run a credit risk department whose job is to assess the financial health of their customers, and extend credit (or not) accordingly. They may use in house programs to advise on avoiding, reducing and transferring risk. They also use third party provided intelligence. Credit scoring models also form part of the framework used by banks or lending institutions to grant credit to clients. Sovereign risk[edit] Sovereign risk is the risk of a government being unwilling or unable to meet its loan obligations, or reneging on loans it guarantees.
Five macroeconomic variables that affect the probability of sovereign debt rescheduling are:[9] Debt service ratioImport ratioInvestment ratioVariance of export revenueDomestic money supply growth Counterparty risk[edit] Mitigating credit risk[edit] Credit card fraud. Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. Credit card fraud is also an adjunct to identity theft. According to the United States Federal Trade Commission, while identity theft had been holding steady for the last few years, it saw a 21 percent increase in 2008.
However, credit card fraud, that crime which most people associate with ID theft, decreased as a percentage of all ID theft complaints for the sixth year in a row.[1] Although incidence of credit card fraud is limited to about 0.1% of all card transactions, this has resulted in huge financial losses as the fraudulent transactions have been large value transactions. Initiation of a card fraud[edit] Stolen cards[edit] Compromised accounts[edit] Card account information is stored in a number of formats. Credit card. Visa and MasterCard are two of the most prominent types of credit cards.
An example of the front in a typical credit card: An example of the reverse side of a typical credit card: A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.[1] The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card: a charge card requires the balance to be paid in full each month.[2] In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged.
The size of most credit cards is 3 3⁄8 × 2 1⁄8 in (85.60 × 53.98 mm),[3] conforming to the ISO/IEC 7810 ID-1 standard. History[edit] The Credit Cards in Edward Bellamy's Looking Backward[edit] The Charga-Plate[edit]