Thoughts on Dallas Small Business, Payments, Technology, Project Management, and Electric Vehicles

Earned Wage Access (EWA) is a service that allows employees to access a portion of their earned wages before their scheduled payday. Whether EWA should be considered an advance of salary or a loan depends on how the service is structured and the legal regulations in different regions. Advance of Salary - In many cases, EWA is treated as an advance of salary rather than a loan. This is because the funds accessed through EWA are a portion of wages that the employee has already earned, making it effectively an early disbursement of their salary. Since the funds are already earned, the service doesn't involve the extension of credit. - Typically, EWA providers work in partnership with employers to allow employees to access their earned wages up to a certain limit. The amount is deducted from the employee's next paycheck, so there is no long-term debt incurred. - This model aligns with the notion of a salary advance rather than a loan, as it is not subject to interest rates and the ...

Earned Wage Access (EWA) is a financial service that allows employees to access a portion of their earned wages before the scheduled payday. This industry has gained popularity as a response to the financial challenges faced by many workers, especially those who live paycheck to paycheck.  In a traditional payment structure, employees receive their earnings on a fixed schedule, such as bi-weekly or monthly. This schedule can sometimes lead to financial stress if unexpected expenses arise between pay periods. EWA offers a solution by providing employees with the ability to access a portion of their wages that they have already earned, giving them greater flexibility and financial control. EWA services typically operate through mobile apps or employer partnerships, allowing employees to request and receive advances on their earned wages in real-time. These advances are often repaid automatically from the employee's next paycheck. While some EWA providers charge small fees for the ser...

Participated in an interesting webinar today from AWS Marketplace  on the infrastructure increasingly available in financial services to use cloud providers and their existing marketplace of apps to assist you in creating business products with faster launch speeds, reduced compliance complexity, and the integration of existing tools instead of building from scratch like many providers.  Fascinating to hear what Cardworks is doing with Very Good Security (VGS) to handle incoming and outgoing file transactions while tokenizing card data (effectively obfuscating the actual card number and substitutes a pseudo card number that cannot be used for fraud). Special thanks to the presenters including Shaheen Kanda with AWS and Navel Gurijala with Cardworks.

Cross-border money transmission, over the past two decades, has undergone significant transformations, reflecting the evolution of global financial systems, regulatory frameworks, and technological advancements. As someone who has observed this field for a quarter-century, beginning with a case study at CheckFree University, I have witnessed the profound changes firsthand. Kind of glad that we could not get our leadership interested in a de novo move into the industry despite initially appealing margins and technologies. In the realm of cross-border money transmission, the shrinking of profit margins stands out as a prominent trend over the years. This compression can be attributed to various factors, including increased competition, advances in financial technology, and regulatory pressures. The advent of online payment platforms, fintech startups, and digital currencies has intensified competition within the industry, driving down fees and commissions traditionally associated with cr...

 Since some early work with Fiserv customers, I have been fascinated by Healthcare payments. On the provider site, insurance companies for years had received one group policy payment, often via wire, to cover employees. Then in 2011, the market exploded with the Affordable Care Act (ACA aka Obamacare) where individuals could buy policies on marketplaces. That means that the insurance companies had to move from the one payment to x policies design to a one payment to one policy design. Today's blog draws some content from Payments Dive on this subject . Essentially JPMC did a survey on the process of consumers and found that Healthcare payments remain a challenge: Refunds / chargebacks / returns remain an ambiguous process subject to a lack of rules. Posting time is variable Payment methods (eACH, Visa, Mastercard) are not very progressive. No PayPal, Venmo, ApplePay Limited Buy Now Pay Later (BNPL) options I just had to make a lab payment. My experience is probably not atypical: I ...

 Posting for opinion...have been managing an effort to install electric vehicle charging where I live. We are outsourcing so a provider will cover the capital costs. EV owners will have the ability to pay a one-time $5,000 charging station build-out fee, a $40 subscription for actively charging and a marginal surplus on the condominium building electric costs. This is my solicitation email to current EV owners. Supply name and the condo name have been changed to protect the innocent. 😁 Subject: Transform Your EV Charging Experience with Our Provider! Dear EV Enthusiasts, Imagine starting every journey with a fully charged vehicle, ready to take on the day without ever having to detour for charging. We're excited to bring that vision to life here by partnering with Our Provider, our handpicked provider for premier EV charging solutions designed exclusively for our community. With Our Provider, you'll enjoy the luxury of charging your electric vehicle in your own parking spot, a...

I remember doing a presentation 10+ years ago to a group of Account Managers at a major processor. We talked about Visa / Mastercard / American Express / Discover / electronic check, and a small PayPal science project we were running with a customer. I mentioned at the end that they need to be equipped for requests from their electronic billing and paying customers (major billing institutions) for new methods, especially in states like California. We were starting to hear about Alipay and JCB (Japanese Credit Bureau) payments and settlement. One of our leaders mentioned that our checkout page might look like a Nascar car with all of the logos but even he might not have guessed: Visa Mastercard American Express Discover Pix - Brazilian  national payments system that Fiserv helped expand to Argentina and now will support in the US It is a non card payment with lower settlement costs than credit card payments Flavors of "instant" ACH such as FedNow AliPay Venmo ApplePay Google ...

Payments are an interesting thing. Essentially payment processing, whether your financial institution, a non-financial firm like Block (Square), or a quasi-financial firm like PayPal are generally all commodity players. Today's Payments Dive  has an interesting article as PayPal drives to find increasing pricing power under a new leadership team. PayPal's Braintree subsidiary is an interesting case study. It is "unbranded" with PayPal but grows 30% a year while PayPal's branded segment only rose 6%. I am a big fan of consumer driven repricing IF you have leverage and a story. I have led repricing efforts of late charges (in the private label credit card space) and subscription services (in the consumer recycling space). In both cases, we captured the incremental value we were providing for the customer with minimal actual breakage. Will be interesting to see in a year how PayPal manages it.

Contactless payments have revolutionized the way we handle transactions, offering convenience and efficiency in an increasingly digital world. However, like any technology, they come with their own set of advantages and disadvantages. Pros 1. **Convenience:** One of the most significant advantages of contactless payments is their convenience. With a simple tap of a card or smartphone, transactions can be completed swiftly, eliminating the need to fumble with cash or enter PINs. 2. **Speed:** Contactless payments are incredibly fast, reducing transaction times significantly compared to traditional payment methods. This is especially beneficial in high-traffic areas such as supermarkets or public transportation systems. 3. **Hygiene:** In the wake of the COVID-19 pandemic, hygiene concerns have become increasingly important. Contactless payments minimize physical contact between individuals, thereby reducing the risk of spreading germs and viruses. 4. **Security:** Contactless payments u...

Title: Understanding the Shift: Visa and Mastercard Allow Surcharges on Credit Card Purchases In a significant departure from previous policies, Visa and Mastercard have made a pivotal decision to permit merchants to impose surcharges on credit card transactions. This change comes irrespective of whether American Express already grants such flexibility. Merchants are now empowered to levy surcharges ranging from 1% to potentially 3% of the transaction value. This shift marks a notable evolution in the dynamics of credit card transactions. Previously, merchants were bound by regulations prohibiting surcharges on credit card payments. However, Visa and Mastercard's recent decision introduces a new dimension, allowing businesses to pass on a portion of the transaction fees to consumers. For merchants, this change presents both opportunities and challenges. On one hand, surcharging credit card transactions can help alleviate the financial burden associated with processing fees, thereby...