Malaysia Compelling Tech Giants To Pay Media Outlets; Is It Similar To Australia?

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A senator has said that Malaysia must consider compelling the companies who are considered as the tech giants in the field of technology such as Facebook and Google for paying the media outlets for their news content. Well, it is quite similar to what Australia has done. They had already decided to compel Facebook and Google to pay the media outlets for sharing news content.

Liew Chin Tong, Former Deputy Defence Minister of Malaysia. He has also mentioned this fact on his Facebook page on Thursday, 23rd April.

“This is something Malaysia should consider”

He further said, “We should make Google and Facebook pay. This should be done so that independent media outlets- not paid for by public purse. Or big commercial interests- can produce great content for society with sustained sources of income.”

“This will open up a whole new front where public debates and disclosure can flourish further.”

The Former Deputy Defence Minister also said. “As we encourage a broader space for the contestation of ideas, hopefully, we will empower more Malaysians to play a larger role in our democratic process.”

It is a fact that with the advancement of technology, the number of mobile payments and online transactions has increased. Well, online news portals are not an exception; the traffic on these sites is rapidly increased. This is happening as people nowadays consume more news online. Moreover, daily papers have become difficult to sustain over time. This might be another reason behind the success of the online news portal.

Liew Chin Tong knows it very well and therefore, he said. “They are not as quick and as instant as online news. Yet it is not easy to pack them with deep analysis.”

The print publication of Edge Financial Daily was halted after a 13-year run on 21st April, Tuesday. Datuk Ho Kay Tat, chief executive officer of The Edge Financial Daily cited that the impact of COVID-19 and the increasing popularity of digital news were the main reasons behind it.

Bloomberg on 21st April reported that the government of Australia will force the tech giants Facebook and Google to pay the media companies for publishing their news.

The foremost objective behind this is to maintain a sweet balance between the traditional media outlets and the tech giants.

In addition to this, Australia has also launched a contact-tracing mobile application to combat the coronavirus outbreak on 26th April.

Credit Card Machine Transaction Types

credit card machine

We are now in the 21st century where we have been using different types of payment methods and credit card payment is one of them. But, most of us do not know different types of credit card machine transactions, and therefore, here, we are going to make a brief breakdown of credit card machine transaction types.

Sale

Sale otherwise known as credit card purchase is one of the most straightforward as well as common transaction types. During the transaction, the credit card information along with the purchase amount is sent to the merchant processor. After that, the payment processor forwards all the information regarding the transaction to the card network. Then, the issuing bank of the customer is asked to approve the transaction. If the transaction is approved, the payment processor sends an approval code to the merchant. Well, it is a real-time process and the whole transaction is completed within a few seconds.

Authorization Only

Authorization only or just authorization is called pre-authorization and it is very similar to sale. But, there is a difference between authorization and sales. in case of pre-authorization, the money is not received instantly to the merchant account. Well, credit card machine authorization is also a real-time process and the approval code is sent by the payment processor to the merchant for the purchased amount. But, money is not debited from the account of the cardholder. Instead of it, the money is “reserved” or “frozen” for 10 days. In some cases, it can be 7 days.

When the merchant wants the pre-approved amount in his account, he just needs to submit a “capture” request. People running the business of car rentals, gas stations, and hotels are familiar with this type of online credit card payment. Through this type of credit card transaction, the merchant easily gets to know whether the cardholder has the desired amount or not on the card. The best part of this type of transaction is that money will be debited after completing the transaction. However, if the merchant forgets to “capture” the amount within 7 or 10 days, the money will be released back to the account of the cardholder.

Force

Earlier, we have mentioned the word “capture” in the pre-authorization credit card transaction. Well, Force which is otherwise known as the capture is the second step of authorization only transaction. The merchant will get 30 days to complete the “capture”. But, the money will be frozen for the first 7 or 10 days. Well, it means that if the merchant performs capture or force transaction on the 15th day, there is no guarantee or surety that the pre-authorized amount will still be available on the cardholder’s account.

In the case of credit card machine force transaction, the merchant can capture the full pre-authorized amount or anything lesser than that amount. But, he will not be able to capture more than the pre-authorized amount. Well, we can take the gas station as an example. Most gas stations do a pre-authorization of $300 but, the merchant generally captures a smaller amount. Therefore, the uncaptured fund will be revered to the account of the cardholder.

Void

A void transaction is made in order to cancel the authorized transaction. Such kind of transaction is done when the customer enters the wrong amount for a credit card purchase. The transaction can be voided by the merchant and after that, it can be again processed with the correct amount.

It is also a real-time transaction and in this scenario. The card network tells the issuing bank of the cardholder to cancel the transaction as well as approval code. No interchange fees will be charged for the void transaction and if the amount is refunded, interchange fees will not be reversed back. Well, if the batch is settled, a void transaction cannot be done and in such case, the only option left for the merchant is “refund”.

Refund

From the previous point, you have got a basic idea about this kind of transaction. So, a refund can be performed when a batch is already settled. This type of transaction is always considered as “negative purchase”. The void transaction is always recommended as in case of a refund, customers will be charged an interchange fee.

After the refund is processed, the customer will see two different amounts- the original amount and refunded amount. Well, the amount is simply debited from the account of the merchant and sent back to the cardholder’s account. But, there is a catch. Yes, the issuing bank of the cardholder can take up to 10 days to show the amount on the statement of the customer.

So, you have understood different types of credit card transactions. Now, if you are looking for smart payment terminals for your business such as point of sale systems, credit and debit machines and pay at the table, we have the best option for you. Get in touch with International Payment Solutions and elevate your business to the next level.

2.5 Million Credit Card Transactions Exposed by A Payment Processor

Burner Cards

Paay which is a merchant processing or payment processing company. They claim that they offer an extra layer of security to the online transactions. However, the company exposed data of 2.5 million credit card transactions. It also raised concerns over PCI compliance.

TechCrunch report says, Anurag Sen, a security researcher found the information regarding the transactions that include expiration dates, the amount that is spent, and credit card numbers. He exposed this New York-based payment processing firm.

Kolochenko, CEO and founder of ImmuniWeb said that the impact of COVID-19 might have distracted the staff. However, legal authorities will definitely take action. The action will be taken if there is any mistake or if the company did not meet the standard set by PCI.

Ilia Kolochenko said, “This incident will likely trigger jealous investigations and serve penalties. Likewise, it will probably bring a series of harsh ramifications under PCI DSS. This seem to have been largely neglected in this case.” He further added some other details. “The western judicial system will unlikely demonstrate any leeway for negligent or overly careless data protection. This will be done even amid this unprecedented pandemic.”

Century Business Solutions, a merchant processing firm is of the opinion that PCI compliance is compulsory. If there is any data breach and the company does not meet the requirement, it will have to pay fines and penalties. It can be anything in between $5000 to $500,000.

Robert Prigge, CEO of Jumio says, “It is important for banks of all sizes only rely on vendors and third parties that are PCI compliant and come equipped with the necessary security and certifications to keep customers protected.”
Recent Update

Paay forgot to put password protection on their server and therefore, it allowed anyone to access the inside data. The housed data consists of credit card numbers, the amount spent, expiration dates, and masked copies of each credit card number. However, it did not include CVVs and cardholder names in it.

For addressing the issue, the company has already informed 15 to 20 merchants. Moreover, they are working with a forensic auditor in order to detect the scale of this problem.

Chris DeRamus, CTO and co-founder of DivvyCloud has made his comment on this data breach”. According to Paay’s CEO, they spun up and subsequently misconfigured an instance leaving their database of 2.5 million card transaction records exposed to the public without a password.”

He also said that the company did not take any proactive steps in order to protect the data. They made too many responses which are just reactions to these data violations.