What Is a Third Party Merchant Account?

"Third party" is the other party based on the first party and the second party . The so-called third - party payment is a transaction support system for sellers and buyers to implement payments provided by some independent third-party institutions that have contracted with the bank and have certain strength and credibility.

Third-party account

Right!

"Third party" is the other party based on the first party and the second party . The so-called third - party payment is a transaction support system for sellers and buyers to implement payments provided by some independent third-party institutions that have contracted with the bank and have certain strength and credibility.

Chinese name

Third party

The so-called third-party payment is a transaction support system for sellers and buyers to implement payments provided by some independent third-party institutions that have contracted with the bank and have certain strength and credibility.

Let s look at a transaction that occurred on Ma Yun s Taobao s third-party payment platform: After the buyer purchases goods on Taobao, the buyer uses the account provided by Alipay to pay for the payment, and Alipay notifies the seller that the payment has arrived and sends the goods; the buyer inspects the item Within 7 days after the notification, Alipay can pay the seller; Alipay will then transfer the money to the seller. Alipay here is third-party payment. It can be seen that the "third-party account" plays a very important role in third-party payment, solves the credit problem in e-commerce transactions, and guarantees and promotes the development of e-commerce through the function of third-party guarantee accounts.

"Third party account" is composed of two concepts: "third party" and "account". "Account" refers to the classification of various fund use, source, and turnover process settings in the account book. It is an information carrier that records the status of funds at different stages in its entire operating cycle. Marx's view of political economy tells us that accounts existed in human life before the birth of money, but the accounts at that time did not reflect the virtual form of value, but the real thing. In primitive society, pig farmers exchanged two of his 10 pigs in captivity with 10 of the chicken's 30 chickens. Pigpens and sheds were accounts at that time. It can be seen that the account was in kind when it originated, but today it is the information stream. Even if an individual opened an account in a bank today, there are only a few strings of digital information in it, and the corresponding banknote may not be printed at all.

"Third party" is the other party based on the first party and the second party. In our field of third-party payments, it points out that in transactions now, it acts as a transaction participant for the communication between buyers and sellers. In the vegetable market, buyers and sellers pay one hand and one delivery, which means there is no two-party transaction between third parties. In the era of Jack Ma, people began to conduct non-face-to-face transactions on the Internet. The uncertainty of the buyer and seller on the credit of the other party led to the situation of the third party as an intermediate guarantee and supervisor. When both the buyer and the seller agree that the same third party acts as the middle supervisor of the transaction, the two parties will recognize the flow of transaction funds from the buyer to the third party and then to the seller.

Payment platforms such as Paypal, Alipay, Wealth Express, and Quick Money in the third-party payment industry have a large market share globally.

Classification and mechanism of third-party accounts

According to the transaction status, third-party accounts can be divided into the following categories: B2C, that is, third-party accounts for transactions between merchants and consumers; B2B, that is, third-party accounts for transactions between merchants and merchants; C2C, that is, Third-party accounts for consumer-to-consumer transactions. The creation of this model is marked by the establishment of eBay in 1998. At present, the C2C model is mainly used by companies such as eBay eBay, Taobao, and Paipao. The most common is Taobao Online. Many of the individual small online stores (we also consider such small stores without physical stores as a consumer), and consumers use Alipay as a third-party payment intermediary.

According to the basic attributes of the accounts of both parties to the transaction, there are the following types of third-party accounts:

First, it is divided into merchant and customer-type third-party accounts. A merchant-type third-party account is an account opened by a merchant with a third-party payment institution. The virtual ownership of the funds belongs to the merchant, such as paying a telecommunications company customer through a third-party account; a customer-type third-party account is an account opened by a customer personally at a third-party payment institution Account, likewise, only the virtual ownership of the account belongs to the customer, similar to an Alipay account. However, the funds in both accounts are actually controlled and used by third parties. Both types of accounts are similarly coded in the computer. Some people divide them into channel accounts and own accounts.

Second, it can be used for the classification of debit and credit third-party accounts. Debit third-party accounts are similar to bank accounts. Users must deposit money into the account before they can use payment services, such as various types of stored value cards and mobile wallet services in the society. Credit accounts are granted to users by third-party payment institutions. A certain currency credit is equivalent to issuing a credit card to the user.

Third, there are also classifications of independent and non-independent third-party accounts. This is defined based on the relationship between users and third-party payment service providers. If the third-party payment service provider and transaction platform provider are the same, then this third-party account is not independent, such as Alipay on Taobao; and In the business provided by Quick Money to airlines, their service is an independent third-party payment service.

In addition, some people divide third-party accounts into their own and non-owner accounts, but in fact, a real third-party payment company should have its own account in the bank, and the user's money must also be in the bank. , So as long as there is a third-party payment, it must be based on its own account. A third-party payment institution's use of someone else's account (non-owner's account) is not secure and has no economic significance. Therefore, the joint UIM card business developed by telecommunications operators and card issuers is not a third-party payment. The strength of binding customers is relatively weak.

Third-party payments "on the go"

Third-party payment in a multi-media environment

Third-party payment has been in Internet payments for some time. With the continuous development of the Internet of Things economy and financial innovation, third-party payment is no longer limited to traditional single payment media, but has developed in the direction of integrating multi-media third-party payment. For example, SMS-based payment based on mobile phones, QR code payment, mobile wallet payment, fixed-line payment based on fixed phone, and payment based on video IPTV interactive terminals, etc., the payment media operated by accounts are becoming more and more abundant. We predict that in the near future, third-party payment IoT media based on artificial intelligence and biotechnology such as voice recognition, fingerprint recognition, retinal recognition, etc. will also show their strengths.

Enterprises with extensive customer channel resources and credibility intervene in third-party payment

Third-party payment depends on the size and trust of customers to survive. Therefore, companies with extensive customer channel resources and credibility will have a very broad market prospect in the third-party payment field. These companies can segment the entire market, including different payment media profit models and marketing strategies for different markets according to the size of the payment amount, the high, medium, and low-end of the merchant, and different industries, etc .; You can also use third-party payment platforms to serve your own business to avoid paying fees to traditional third-party payment platforms. Its high transaction volume will improve the ability to negotiate with banks and increase the stickiness of accounts / account numbers to customers. Among them, telecom operators will also be involved in the third-party payment field on a large scale as an important source of customer development, maintenance channels and corporate profit enhancement.

The attribute of currency is more obvious, and comprehensive supervision is more convenient

In the past, the currency issued by banks was only a difference in denomination. With the promotion of third-party payments and other information-based financial innovations, attributes such as who consumed the currency, when and where it was consumed, and whether there were value-added deposits for specific merchants were naturally added. Go to "Currency". Based on these attributes, innovations in regulation and business models will become more abundant.

Third-party payment has a strong sense of mission since its birth. It has continuously improved perception for users, and its development has provided strong support for the progress of e-commerce. With the rapid development of generalized e-commerce, more and more third-party payments will be used in economic and social life.