Companies in this industry provide services such as credit card processing, electronic funds transfer, and check clearing. Major companies include Alliance Data Systems, First Data, Global Payments, Heartland Payment Systems, MasterCard, Visa, and Western Union (all based in the US), as well as China UnionPay (China), Cielo (Brazil), and Moneris Solutions (Canada).
Technology is transforming the financial transaction processing industry and consumers' interactions with money. While cash remains a mainstream form of payment -- especially for low-value purchases -- digital and mobile payments are on the rise. Digital payment transactions are expected to reach 726 billion by 2020, according to a study by Capgemini and BNP Paribas. Checks appear to be on the way out.
Products, Operations & Technology
Processors provide transaction services to banks that issue credit cards and to merchants that accept credit card payments. Merchant products include authorizing, capturing, and settling merchants’ credit and debit card transactions, and handling chargebacks. Chargebacks occur when a consumer disputes a charge and charges it back to the merchant. Processors also sell or lease point-of-sale (POS) terminals. Card issuer products include transaction authorization and posting, statement generation and printing, and card embossing.