Storytime - Wrestling with Problems with Host Joe Casali
Wrestling Payments Podcast: Season 1 - Episode 15
Episode Summary
In this insightful episode of Wrestling Payments, Joe Casali dives deep into the complexities and challenges of payment operations. He emphasizes the critical role of problem-solving in the industry, highlighting how essential it is for professionals to understand the rules and mechanisms of different payment systems. Joe narrates a real-life story, maintaining anonymity, to illustrate the intricate process of payments, particularly focusing on the Real-Time Payments (RTP) system.
Joe begins by explaining the fundamental flow of an RTP transaction, involving the sender, sending bank, network, receiving bank, and receiver. He details the rapid and efficient process, emphasizing the speed and precision of these transactions. The episode takes an interesting turn as Joe introduces a third-party service provider in a transaction scenario, exploring how their involvement can complicate the payment process.
The heart of the episode lies in a case study where a transaction goes awry due to a mismatch between the receiving bank's system and the RTP network. Joe explains how a seemingly straightforward RTP transaction gets complicated by additional checks and balances introduced by the receiving bank. This leads to an insightful discussion on the importance of understanding payment network rules and the pitfalls of automated systems in handling exceptions.
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Guest-at-a-Glance
💡 Host: Joe Casali
Key Insights
âš¡The Importance of Problem-Solving in Payment Operations
In the rapidly evolving world of payments, problem-solving emerges as a crucial skill. Joe Casali discusses the changing landscape of payment operations, emphasizing the need for professionals who can navigate complex scenarios. He points out that understanding the rules and mechanics of payment systems, such as Real-Time Payments (RTP), is vital. This insight highlights how problem-solving goes beyond technical knowledge, requiring an adaptable mindset to address unforeseen challenges in payment transactions.
âš¡Navigating Complexities in Real-Time Payments (RTP)
The episode dives into the intricacies of the RTP system, illustrating its operational flow involving senders, banks, and receivers. Joe Casali explicates the speed and efficiency of RTP transactions, but also sheds light on potential complications. A key insight is the complexity introduced by third-party service providers in the payment process. This discussion underscores the necessity for thorough understanding and coordination among all parties involved in RTP transactions, highlighting how a single mismatch can lead to significant operational challenges.
âš¡Handling Exceptions and Automated Systems in Payment Networks
A compelling segment of the podcast revolves around a case study where an RTP transaction is disrupted by additional security measures. The episode reveals how automated systems, while efficient, can falter in handling exceptions, especially when they don't align with the payment network's protocols. This insight stresses the importance of balancing automation with human oversight. It serves as a cautionary tale about the pitfalls of over-relying on technology in payment systems, advocating for a more nuanced approach that considers the unique aspects of each transaction.
Episode Highlights
The Role of Operations in Payments
Timestamp: [00:01:04]
In the opening segment, Joe Casali discusses the evolving role of operations in the payments industry. He emphasizes that the key attribute sought in professionals in this field is the ability to solve problems. Joe explains that this skill is critical for those working in operations at financial institutions and third-party service providers. The industry's focus is shifting towards hiring individuals who can navigate and resolve complex issues in the payments landscape.
"One of the skills, we've done a lot of research around the new role of operations, how operations are changing, and what are the characteristics of the workers, the employees we're looking to find to work in payments."
Understanding Payment Flows in RTP
Timestamp: [00:04:58]
Joe takes time to explain the flow of a transaction in the Real-Time Payments (RTP) network. He outlines the roles of the sender, sending bank, the RTP network, the receiving bank, and the receiver, illustrating how a transaction moves from initiation to completion. Casali emphasizes the importance of each participant understanding their role and the flow to ensure efficient transactions.
"Sender, Sending Bank, Network, Receiving Bank, Receiver. It flows straight through. It's a message. [...] A lot of things are going on. And what the first thing going on is, is when the Sending Bank goes to send the transaction, they're making sure that there's money in the sender's account. Right? They don't want to send out a payment that doesn't have any money behind it."
Challenges with Third-Party Providers in Payment Transactions
Timestamp: [00:07:29]
This part of the discussion focuses on the complexities introduced when third-party service providers are involved in payment transactions. Joe shares an instance where a third party’s involvement led to complications in an RTP transaction. He points out that while third-party services can facilitate certain aspects of payments, they can also introduce unexpected challenges, especially when their systems do not align seamlessly with established payment networks.
"So in the case of this receiver, they're, I don't know if I want to say they're smaller, but they've chosen to use a third party to really run these processes."
Handling Exceptions in Automated Payment Systems
Timestamp: [00:14:21]
Towards the end of the episode, Joe discusses the criticality of handling exceptions in automated payment systems. He presents a scenario where an automated response to an exceptional situation led to a complex problem, underscoring the need for well-thought-out systems and processes. This part highlights the risks associated with automation in payment systems, particularly when unexpected situations arise that the system is not configured to handle effectively.
"They certainly solved it the wrong way because, and we haven't talked to this and we're not going to talk to this, but they originated an entry out of thin air. There was no authorization."
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