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USPS- Payoneer Present US Payment Service

By George Sloin on July 22, 2012

Over the past four years, global payout company, Payoneer, has been perfecting a revolutionary international payment distribution process. The US Payment Service was designed to allow payees world-wide to get a US account number, and receive payments from US corporations initiated through the US ACH (Automated Clearinghouse) network. These funds are loaded onto Payoneer prepaid debit cards that reside in different countries and can be withdrawn at ATMs and used at merchants accepting MasterCard. In essence, the service allows non-US residents to be paid by "accredited" American companies as if they actually lived in the United States. The system is supported by a security-centric platform that assures adherence to international regulations, as well as the authentication of participants and transactions.

US Payment System - Process Overview

This novel solution works by providing approved non US individuals with a virtual US account in the United States. When it's time to pay an individual, an accredited company simply initiates a local ACH transaction (ACH is the most common way to move funds between banks in the US) to the individual's account as if he or she was a US resident. The funds are then transferred to the individual's Payoneer prepaid card, where they can be withdrawn from an ATM in their native country and currency. Funds can also be used to purchase good or services at any merchant accepting MasterCard.

The US Payment Service provides cardholders with an ACH-based "payments account." Although they are assigned a bona fide ACH account number, it is used strictly for routing funds. It cannot be used as a savings or checking account. All transactions routed using these numbers must first pass through Payoneer for authentication and validation. Only after a transaction has been approved, will funds be moved to a Payoneer card.

Payoneer effectively acts as an intermediary, approving all transactions. Accredited corporations initiate ACH transactions at their own bank, known as the Originating Depositary Financial Institution. Under normal circumstances, an ACH transaction is sent to the intended Receiving Depositary Financial Institutions (RDFI, ) where it is deposited into the appropriate checking account. With the US Payment Service, all ACH transactions are routed to a special RDFI where Payoneer can authenticate the players and validate each transfer prior to disbursement to the proper Payoneer prepaid card.

Authenticating Cardholders under the US Payment System

Moving funds across the globe can be a risky business. Criminals and illegitimate businesses are always looking for ways to move their ill-gotten gains. Each country has enacted its own financial regulations to help thwart these criminals. International agreements add additional layers of regulation. Compliance was therefore the most challenging aspect in securing the US Payment Service solution. Authenticating the players, especially the recipient, was an essential element of this requirement.

Payoneer implemented a comprehensive plan addressing both regulatory and customer identification requirements. Payoneer's presence in the US required adherence to the Bank Secrecy Act (BSA), the USA Patriot Act and OFAC. They were also required to implement strict Anti-Money Laundering (AML) and Know Your Customer (KYC) policies. Considering that most card applications are received online, developing a full proof Customer Identification Plan (CIP, required under the Patriot Act) was critical.

Payoneer implemented a complex web of integrated checks and balances to insure applicant integrity. First, the service is only offered to those who pass a rigorous checklist. This exhaustive screening includes significantly more than that required by law, and uses many electronic and social-based tests to identify potential threats. For obvious reasons, Payoneer does not disclose details surrounding this process.

Screening and Approval of Businesses Initiating Payments

Although less daunting than cardholder screening, the accreditation of payer companies is also quite rigorous. Payoneer will only accept payments on behalf of its card holders from pre-screened "white-listed" US business. Checks performed by Payoneer to accredit payment initiators usually include the following:

OFAC Screening Products/Services Review

Web Site Review and Validation Better Business Bureau

PACER Review (Legal Proceedings) Dunn & Bradstreet Data

Online Review (Google, etc.) 3rd Party Data (e.g., Experian)

In general, Payoneer will only accredit companies that are reputable businesses which perform appropriate due diligence on payees prior to initiating payments. Examples include well known companies such as Google, Amazon, PayPal, 2Checkout, Digital River, Elance, ODesk, Plimus, Humana and others.

There has never been a more secure and convenient way for foreign individuals and contractors to receive payments from US companies.

About Payoneer

Payoneer is an industry-leading global payments company accelerating growth for its customers by improving the way they manage and pay partners, affiliates and independent workers in more than 200 countries worldwide. Payoneer's complete solution provides a simple, secure, compliant and cost-effective way for companies of all sizes to offer superior and cost-saving payments options including: Prepaid Debit cards, deposits to local banks worldwide, wire transfers, mobile payments, global and local e-wallets and local-currency paper checks. Venture backed and profitable, Payoneer has served more than one thousand companies and more than one million payees around the world. Learn more at http://www.payoneer.com.

Being a professional writer for many years, George Sloin is based in the United States. Having worked for several years in the technology and finance industries, he specializes in writing about ecommerce, payment solutions, and global markets. Sloin enjoys following new developments of successful companies in the field of e-commerce. Read more about Yuval Tal's Businessman and Entrepreneur

Original article published on SooperArticles.com

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