Citi and Mastercard Join Forces on Cross-Border Debit Payments
Hey Payments Fanatic!
Big news in the world of payments! Citi and Mastercard are teaming up to simplify cross-border debit card payments, making it easier than ever for consumers and businesses to send money worldwide, 24/7.
Citi is the first global bank to roll out Mastercard's Move platform, allowing for fast transactions like insurance payouts, airline refunds, and e-commerce payments. Debopama Sen, Citi’s head of payments, says the partnership will make cross-border payments feel seamless—no borders, no currency issues, just smooth transfers.
With global commerce on the rise, this partnership is a major win for both Mastercard and Visa, who are racing to make international payments faster and easier. Mastercard also recently expanded its partnership with China’s Alipay, while Visa works with Western Union to offer similar cross-border services.
The best part? These payments happen almost in real-time, often within seconds. Citi customers in 65 countries will be able to use this debit card solution to send money across borders.
Exciting stuff! What do you think about this new payment innovation? Drop your thoughts in the comments!
Cheers,
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INSIGHTS
📊 Global Payments Stack 🆚 Blockchain Payments Stack
Let’s dive in:
PAYMENTS NEWS
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GOLDEN NUGGET
How is a credit card 𝐝𝐢𝐬𝐩𝐮𝐭𝐞 processed in the system?
Hua Li breaks it down for us:
Dispute happens when a cardholder disagrees with a merchant’s charge.
A dispute is 𝐞𝐱𝐩𝐞𝐧𝐬𝐢𝐯𝐞: for every dollar in disputed transactions, an additional $1.50 is spent on fees and expenses [1]. The process/system complexity leads to the cost.
The diagram below shows how a dispute is processed in an eCommerce marketplace.
🔸 Steps 1-2: A customer files a dispute with the issuer or PSP (Payment Service Provider). The issuer or PSP sends the 𝐝𝐢𝐬𝐩𝐮𝐭𝐞 𝐧𝐨𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 to the eCommerce marketplace’s inbound gateway.
🔸 Steps 3-4: The inbound gateway sends the dispute notification to the correlation service, which correlates internal orders and payments with external bank information. Then the enriched notification gets sent to a messaging component.
🔸 Steps 5.1-5.2: The dispute notification is sent to the dispute service for the 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧-𝐦𝐚𝐤𝐢𝐧𝐠 process. It collects evidence from various internal systems to help make the decision. Meanwhile, the dispute notification is sent to the payment service to lock the refund and hold payment.
🔸 Steps 6-7: The decision (accept or defend) is sent to the outbound gateway, then sent to the issuer or PSP for 𝐚𝐫𝐛𝐢𝐭𝐫𝐚𝐭𝐢𝐨𝐧.
🔸 Steps 8-11: After arbitration, the bank or PSP sends the arbitration notification (win or lose) back, together with the settlement files. The reconciliation service reconciles arbitration result and settlement files. The arbitration result is sent to the dispute service. If there is a cost due to merchandise reasons for arbitration loss, the dispute service calls the payment service to 𝐫𝐞𝐜𝐨𝐮𝐩 the cost from the seller.
Source: Hua Li
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