Author: Alex Katz

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Finance

How Does a Payment Gateway Work – Explained In 5 Steps

Payment Gateway Work

Unless you are living under a rock, you might have heard about the payment gateway. It has become the strong foundation of any kind of business. Every small or large business looks for a decent payment gateway that makes the whole transaction process a walk in the park.

Here in this blog, we will learn all about payment gateway and its working.

What Is a Payment Gateway?

Payment gateway is the software that merchants need to incorporate into their business to receive and send payments. A payment gateway allows customers to execute an online transaction using various payment methods such as net banking, debit card, UPI, credit card, and online wallets. It acts as a trusted third party, securely transferring funds from the customer’s bank account to the merchant’s payment portal.

Let’s take an example where you bought a phone from an eCommerce store named XYZ to understand it better. Now the work of the payment gateway is to securely transfer the money from the purchaser account to the merchant account.

Why It is Must for Business Owners to Use Payment Gateway?

Online theft and fraud are not something new. Many businesses have their fair share of it. Fraudsters would have easy access to the card information you handle, putting your company at risk of theft and chargebacks. Furthermore, criminals would develop new ways to conduct unauthorized transactions, making you even more vulnerable to fraud and harming your business ’ reputation. But this all can be avoided by the payment gateway. It protects businesses from insufficient cash, expired cards, canceled accounts, and exceeding limits, in addition to fraud monitoring. Click here to know more about the payment gateway.

How Does Payment Gateway Work?

Now comes the question of how payment gateway works. So here, in this section, we will mention the step-by-step process of the payment gateway working.

Step 1

The very step is when the customer places the order. After filling in all the details, he/she must click on submit or any relevant button.

Step 2

After this, the website will redirect the customer to the payment gateway page, where he needs to enter the payment details. After submitting the details, the payment gateway takes the users to the issuing bank page where he/ she needs to authorize the payment using a secure password, OTP or UPI pin.

Step 3

Once the payment gateway gets its approval, the bank will confirm if the user has the required amount in its bank or not.

Step 4

After cross-checking the amount, the bank will send the message to payment gateways. If the message is not, the payment gateways will send the error or failed transaction message to the customer. NAd if the message is Yes, the payment gateways will wait for the amount from the customers’ bank.

Step 5

The next step is the bank settling the amount. They will send the amount to the payment gateway, which gets credit to the merchant account. After this, the payment gateway will send the confirmation message to the customers.

This is how payment gateways work, and the best part about it is all these steps take place in seconds. It is one of the fastest technologies. Money transactions entail sensitive information such as a user’s bank and credit card numbers, purely personal. As a result, it is critical to ensure that sensitive data is kept secure.

That’s it! Here you got all the knowledge of how payment gateway works. In this fast-paced world, you can’t rely on the old methods if you want to succeed. Having a decent payment gateway is a requirement if you want to take your business to new heights.

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Finance

Ways To Improve Your Organization’s Invoicing Process

Invoicing Process

Invoice processing is the complete workflow that manages invoices with the help of invoice software. Many companies usually have the same start (receive invoice) and finish (pay invoice) process. With the help of invoice software, businesses can manage their invoicing operations with accuracy and punctuality. It helps to control the process of accounting and finance by automating repetitive and tedious tasks.

How to Improve Your Organization’s Invoicing Process

Here are the simple steps that can improve your organization’s invoicing process and ensure increased cash flow and business productivity:

1. Set your terms

Companies have to create billing terms that maintain good customer relations with customers, avoid surprises, and get paid on time. Choose whether to bill hourly or by the project/product. Expecting when your clients pay you and how the problem they face if they skip a billing deadline. Make sure of the possibility with any client before you enter into any contractual agreement and stick to them. Your company requires cash flow and hard work is the only way to achieve it.

2. Know your clients

It is a good idea to help your clients to increase your chances of being paid on time. Make sure you’re working for a real person or company, not a fake person or one that won’t be around to pay their bills. Once this is created, customers will be paid for your goods or services, whether digitally or by check, and how long it will take to receive a payment. If customers pay tax-free or if they will need a multi-payment cycle.

  1. Invoice consistently

Companies need to outline a billing schedule that helps you plan and also know clients to look for an invoice from you. To bill on the same days, it is a good idea to decrease each month the possibility that your invoices get skipped and end up unpaid.

4. Create clear and detailed invoices

All essential details are included in your invoices while still maintaining accuracy and clarity. You need to add your contact information, as well as that of your client, and a tracking number. You are looking at the list of the products or services as clearly as possible, along with unit prices, quantities, taxes, applicable discounts, and the final amount you need to pay.

5. Keep a paper trail

If your client needs a printed invoice, make an additional electronic copy. This makes a paper trail, which is helpful to have in case of a legal dispute. You have to record everything that passed between your client and you of project change details, price changes, and communications in the same way. When invoicing is sent via email, include the invoice as an attachment in the body of the message. Make sure that your invoice is easy to read and the customer is less likely to skip a section of the bill.

6. Keep an invoice tracking system

You need to keep track of all invoicing as part of your financial record books. All details include when you make your invoice, who you sent the invoices to, if/when they were paid, and how much you received for payment (if they’re paying in stages).

Conclusion

An invoicing process is important to maintaining a cash flow. An invoice software reduces the time spent in sending invoices and handling payments. It also increases customer relations by offering faster error resolution. In addition, the invoicing process reduces fraud and improves security for the customers. Invoicing software also helps your customer relationships extend to a new level.

Want to enhance your business’s cash flow by improving your organization’s invoicing process? Get to know how a feature-rich invoicing software can help you enhance invoicing operations at your organization:

https://dext.com/us/business-owners/sales-invoices

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Insurance

Why You Shouldn’t Believe these Term Insurance Myths?

Term Insurance

The misinterpretations around a term insurance plan can often discourage people from considering them as vital instruments of financial planning. This is due to the several myths that go against the purpose of insurance, which is basically risk management at lowest possible cost. However, in reality, buying a pure term insurance policy is considered one of the most cost-effective methods of getting your life insured. Here, we clarify some of the common misconceptions about term life insurance, especially about what they are and why they play important roles in our lives.

Top 5 Term Insurance myths busted:

  • Myth 1 – Term plans are unprofitable and a waste of money

As term plans provide financial protection to your family in case of your untimely passing, they are not that popular because if you survive the policy period, you get nothing in return for the premium paid. However, the higher protection that you get at lower costs has a much higher value in managing financial risk for your family. At a nominal cost, the complete well-being of your loved ones is assured in your absence. Not only the nominee but also the policyholder can profit from a timely investment in the right type of life insurance plan.

  • Myth 2 – Young and healthy people do not need term insurance

Even if you are young, unmarried and don’t have any kids, it doesn’t mean that you don’t need life insurance. Life is full of surprises and uncertainties. An accident can occur at any time and potentially clear a large chunk of your savings. Moreover, the earlier you buy term insurance, the lesser premium you would have to pay for a large sum assured.

  • Myth 3 – Buying a term policy too late in life is not advantageous

The premium for an older person will be higher in comparison to a younger professional who applies for a term insurance plan. However, a term insurance policy taken after 50 years of age can still provide financial independence for a person after he/she retires. Senior citizens can also get coverage for life and their loved ones will receive the ‘death benefits’ following the policyholder’s demise. This can ensure that their family remains financially secure at unprecedented times.

  • Myth 4 – All term insurance plans are the same and the cover cannot be increased

One of the major myths about a term plan is that the plans cannot be customised. However, that is not true as term insurance plans can be customised as per your needs. You can even add to your term plan to get more benefits and the add-ons can range from the ones accelerating the pay-outs of the base or offering additional cover.

  • Myth 5 – Purchasing term insurance online can be cumbersome and time-consuming

People are often hesitant to buy term life insurance only because the process of buying them through an offline channel can be quite lengthy. However, thanks to the power of technology and the internet, today, you can buy term insurance online without any hassles. Offline procedures will require one to fill up several forms and submit various documents, but it takes a few clicks to buy an insurance policy online from the comforts of your home. You can also calculate the premium that you need to pay by using online term insurance calculators.

In conclusion, a term insurance can be considered as a pure life cover that can provide you high coverage for a low premium. Hence, it’s best to steer clear of the myths around it and know the appropriate policy that you require.

Categories
Loans

Tips to safeguard your business from inflation

business loan

Inflation leads to a series of effects on businesses as well as the economy as a whole. Business investments may get reduced while they struggle to pass the higher cost of purchases to the consumer. Rising inflation can also increase business loan interest rates, which can make business loans expensive and hinder growth. Hence, you need to protect your hard-earned wealth from inflation. Here are some smart ways to immunize your business,

  1. Invest in assets that protect your business wealth – Business owners can invest in physical assets like real estate which keeps appreciating over time. Investing in equipment, while subject to depreciation, can ensure that you keep up with supply.

You can also invest in precious metals like shares of gold mining companies. These assets are less affected by inflation and are often regarded as an inflation hedge.

  1. Cut down business expenses – An effective way of creating savings is to cut down on your expenses. When you sense impending inflation in the near future, try to prepare an expense budget. Identify expenses that are in your control and make a plan to slowly reduce or eliminate them. If you can put a check on such expenses, it will increase your reserves and put you in a better position to tackle inflation.
  2. Maintain an emergency fund – Prolonged inflation can lead to recession. Therefore, it is important to create an emergency fund for your business. This will help you manage the financial situation during the difficult times of inflation. In case of a demand slowdown due to inflation, your emergency fund can come to meet operating expenses.
  3. Manage debts and receivables – You can also consolidate your existing debts to lower your borrowing expenses. For example, you can check your business loan eligibility and look for low business loan interest rates to pay off high-interest debts.

Recovery from customers should also be accelerated. Efficient collection of receivables without hampering customer relationships can strengthen your cash position.

  1. Study your material price and stock smartly – With inflation, the cost of purchase also increases. Therefore, businesses need to study the market and monitor their sourcing strategy constantly. Due to consumer prices rising, many businesses need to sacrifice their profits to remain competitive. This happens if they are not able to pass on the cost of goods sold to the consumer. Keeping a close look at the material price can help you keep up the normal profit margin even during times of inflation.

If you want to avail business loan to prepare for inflation, check your business loan EMI calculator to find out a suitable loan tenure. Your preferred lender may offer flexible loan repayment options as well. By managing these aspects of business, you can strengthen your business to face inflation better.

Categories
Loans

Can Digitising Land Records in India Be a Game Changer

home loans

India as a nation has effectively strived for development through numerous government-driven schemes. The Central Government, as part of the Digital India Land Records Modernisation Programme (DILRMP) has developed a unique way to digitise land records across the country. It essentially intends to create unique identification for every piece of land. Land pockets will have an Aadhaar-like unique identification for the convenient referral.

The initiative has been named Unique Land Parcel Identification Number (ULPIN). The plot pieces will be assigned a geo-referenced 14-digit alphanumeric ID. At present, the programme has been initiated in about 11 states across the country and the rest of the states are slated to be covered by March 2022.

There is no doubt about the fact that the programme will help format the data on land and make it easier for citizens to access the same. It is also intended to improve the process of obtaining land resource information in real-time, better optimise the use of land and assist states in undertaking effective policy planning.

Digitizing of Land Records – The Immense Opportunity

The physical management of land records until now has been extremely inefficient. The ripple effects of this practice are especially witnessed in the fertile lands of the rural regions across the country. Common inhibitors of the small towns are at the mercy of revenue officials. The digitization of land only comes as a modern and efficient way to record land data and keep these administrative issues at bay.

The idea of digitization of land records began in 2018 and the benefits have been recognized across states. At the moment, the people of Jharkhand can view their land records through the ‘Jharbhoomi’ portal. The land records of Gujarat too can be viewed on the official “AnyRoR Gujarat” website. The portals can be used to view the status of land tax, make a land tax payment, register property and even apply for online land mutation.

ULPIN further aims to enhance the service for citizens and effectively prevent the risk of land fraud. The system can bring about transparency in land-related transactions and assure unique identification of land even when the records are outdated. For people of rural areas, this initiative will help access home loans. ULPIN can indeed turn out to be a very successful initiative.

Are there possible downsides?

While India is heading towards being the most well-equipped IT hub, it is still not there yet. There continues to be a major digital divide within the country as most regions do not have access to even basic digital means. The pandemic has further crippled the ongoing developments and digitisation of land could lead to more out of the pocket expenses for rural region citizens.

The Legacy issue is another aspect that has to be addressed. While the centre has assured that the linking of the Aadhaar number will only be done post consent, it is bound to become mandatory with time. Additionally, other possible issues can arise from the complexity involved with linking the Aadhaar card and carrying out biometric identification. The programme can also have a counter effect on the Forest Rights Act (FRA). It could go against traditional living conditions that forest inhibitors have been following for centuries.

To Conclude..

Digitising land records can truly help to effectively manage land administration in India. However, like any other system, it does have its own set of drawbacks that could surface over time. India is especially a country with disputed land records and outdated data. If the risk factors are not weighted well, the digitization of land records will hardly end up being a game-changer as it is currently pitched to be. The key lies in rectifying the previous injustices and updating existing land details before they can entirely move towards the new process.

To stay updated on everything related to the digitising of land records and all the updates on the government land record portals, you can visit Finserv MARKETS.

Categories
Loans

Surviving The Unexpected Financial Emergency With 3 Simple Methods

Installment loans

There will always be an unexpected financial emergency that might happen and you should worry about how you can tackle that situation. According to a recent study, the concern over unexpected financial emergencies is totally normal. In 2015, the Pew Research Study shows that about 54% of the people of America don’t have enough savings that can help them in difficult financial times.

Financial advisers always recommend having at least six months of savings in your bank account. But these savings don’t always get your back when it comes to an unexpected financial crisis. If you consult with a financial adviser or try using a savings calculator, you might get an idea of how much money you should have to survive in an emergency situation.

There are some cases in which no matter how much money you have in your savings account, you still are facing a shortage of money to meet your unexpected financial expenses. But in this article, you will get to know some extremely useful ways that will help you survive if you find yourself in a financial shock.

Keep Yourself Calm:

When someone finds himself in an emergency financial crisis, this makes him panic. If you keep panicking and don’t focus on what exactly the problem is, you might end up making bad decisions. You should keep yourself calm and analyze the situation. It will help you understand your monetary situation better. Keeping your mind focused on the problem will help you explore a lot of available options. You can use the “tuck-and-roll” option to get yourself out of this crisis that is given below:

You have to identify the source of the problem.Create a list of your expenses and compare them with your previous spending over the years to find out are you spending less or more. Focus on those categories of your expenses that can be adjusted or eliminated if they are extras. Try to define your priorities of living. Reducing your monthly spending might hit hard on you but it will definitely lower your expenses quickly and result in increased savings.

Increase Your Earnings:

According to a study in 2017, 78% of full-time workers are living on a paycheck. It means only one-fourth of the job holders can afford to pay their bills. Even if it is shocking and unsettling in terms of financial situation, people have to work hard and extra to make money each month. But you can reduce this tiring routine by keeping yourself away from extra expenses.

Are you looking to sell items of your house that you consider unnecessary? You can sell them online or arrange a backyard sale. You can also get a part-time job to meet your financial expenses. You might be working hard and putting in your extreme efforts to get a promotion at work. Even people are trying to get smaller vehicles that can be affordable. All of this talk is about covering your financial needs or emergencies by saving your money for unexpected events. You can easily achieve your financial goals by exploring every possible option.

Pay Visit To Your Lender:

Just like most Americans, you might be struggling to clear your debts from paycheck to paycheck or want to cover your bills. Taking a loan can be a good short-term option. Power Finance Texas has been in the finance industry for years and they know ways that will help you solve your unexpected financial problems. It is very common that even a little financial stress can turn into a serious problem. We are providing our services and loans that are specifically designed to meet the financial needs of the borrower. Below are a few examples of loans we are providing.

Personal Loans:

These are unsecured and non-business loans that don’t have any typical underwritten document by the lender for your repayment capabilities.

Installment Loans:

Generally, these are incremented repayment plans that are designed for six months after calculating the daily interest model. It makes sure that you don’t overpay. A very common example of an installment loan is a cash advance.  Installment loans you can get via online very easy.

Payday Loans:

These short-term loans are designed to help people until their paycheck and they are up to $1000. The borrower must have to pay them back till his next payday.

Short-Term Loans:

There is a limited amount of time to completely pay the short-term loans as its name suggests and the installments must be paid equally.

You can learn about more financial options offered by Power Finance Texas by contacting them and learn about the qualification for loans. We have experts that will help you in your difficult financial situations and emergencies.