Transaction processing is changing at a faster rate than ever before.

The arrival of new types of payment, many of them based on mobile phone communication rather than card-based, is creating a huge amount of integration work for many processors and merchants.

New entrants to the payments business are interlinking marketing strategies with early level funding and factoring deals to give merchants a better packaged deal.

In particular for international business, there is a lot to be done in accessing local debit networks and telephone-based systems, including conversion to the local currency (as the only way to debit these accounts).

The developing world is leading in the implementation of new mobile technology for both communications and payments, due largely to the lower base of installed legacy systems. But there can be more credit risk, reporting requirements and, often, tax considerations.

And currency exposure; last year several major currencies depreciated by over 20%. Given that many buyers in these countries pay by installments, this can create big costs for the unwary.

On the plus side, the international market provides extra margins and income on transaction processing. And, the developing countries are generating massive new wealth into which to market goods and services.

Achieving the best results, at the lowest risk, requires expert knowledge and 24/7 coverage of the FX markets, plus an accounting structure to interface into domestic systems.

This is where RTpay Global Consulting can help.

RTpay Global Consulting – experience and expertise in foreign transactions

RTpay Global Consulting’s experienced consultants have been operating in the foreign exchange and international transaction business for many years and have developed a wealth of knowledge and expertise in optimizing payments for servicing worldwide customers.

As part of the comprehensive service, specific software has been developed to analyze and implement transactions and trades. This software is constantly refined and updated, but the core system has formed the backbone of processing for major companies and investment groups over the last seven years.

This knowledge and experience is provided to strategic partners, generally in a white label format, enabling processors to incorporate a single interface to multiple international payment options. The solution incorporates an accounting structure which offers a highly detailed level of granularity, including transaction by transaction listing in order to manage reverse transactions etc.

RTpay Global Consulting partners with RTpay, a non-profit group with the same ownership, in advising on international transactions for governments and multi-national bodies, such as the United Nations and the World Bank. This work is primarily geared to improving payments, including remittances, to the unbanked and under-banked in developing countries.

Similar work is undertaken for RTvat on tax issues, mainly geared to improving tax collection and the eradication of fraud by promoting real-time collection methods.

The overall philosophy of RTpay Global Consulting is to work with partners as much as possible, rather than compete with experts in other fields. Our expertise and role is specific; we understand currency risk and how to control it. We can optimize the income and enable our clients to have worry-free business development around the world.

Multicurrency accounting needs to recognize fees, taxes, and commissions payable in the consumer currency which requires some foreign funds to be retained – and not traded back into the merchant’s currency. The remainder of the receivable needs to be traded ahead of the funds being available, to limit foreign currency risk exposure. The hedging process requires detailed analysis of risk, as well as the anticipated net conversion calculation.

Sample Settlement Data

Converting reversals at original rates

A key function of accounting is in individual transaction identification to enable reversals to take place at the same rate.

Managing the income analysis is important, particularly where the profits are shared between various partners.

• International commerce requires compliance with rules and regulations from multiple tax jurisdictions.
• In some cases tax is due in the consumer’s country of origin, and in other cases tax is due in the merchant’s country of record.
• Reporting requirements are increasing dramatically in many countries.
• The increased cost of compliance is causing many banks to increase their pricing to merchants.
• Merchants who can show compliance with AML, KYC, PCI and other legislation can negotiate better rates with the banks – and avoid legal problems.