Appendix C: Schematic of Retail Payments Access Channels & Payments Method

Retail payments can be categorized within two broad groups according to the access channel and the payment method.  The access channel is used at the beginning of the transaction process and provides the user interface (e.g., a plastic card with a magnetic strip).  The payment method includes the remaining parts of the payments process governed by applicable laws, regulations, and contracts.

Figure 13 - Access Channels and Payment Methods

Figure 13

Payment methods that have the fewest changes from established methods are shown in the upper left quadrant above. The lower right quadrant includes emerging payment methods in terms of access channels and payment methods. The remaining two quadrants, upper right and lower left, are hybrids of new and established components. The left side of the matrix shows examples of access channels used to initiate payment transactions, while the top of the matrix identifies general payment methods. The cells list a sample of the payment types that incorporate these various access and payment-method components. Retail payments may be effected using a variety of electronic networks in addition to the traditional cash and check processes. The electronic networks, which are discussed throughout this handbook, include the Automated Clearing House, card associations such as Visa, or MasterCard, and ATM networks.

Retail payment systems continue to evolve with advances in technology.  These advances enable financial institutions to develop new products and services, to lower the barriers to business entry for smaller institutions, and to use "economies of scale."


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Appendix D: Laws, Regulations, and Guidance