Card Payment Systems Introduction ppt

Report
Payment Cards
Payment Cycle
Introduction
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1
Card Payment Cycle
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2
Across The Payments
Spectrum
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3
Supported card product types
Support issuance of Magnetic stripe and Chip (VSDC/M/Chip) cards:
Credit Revolving
Charge
Debit
Corporate
Pre-paid
Instalments
Affinity Cards
Proxy / Virtual Cards (e-Card)
Private label
(profiled cards)
Co-Branded Cards
Payroll Cards
Health Cards
Remittance Cards
Travel Cards
Gift Cards
Custom Electronic
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Purse
4
Credit Card
Authorisation and Clearing
System Flow
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5
Credit Card
Authorisation and Clearing
Types
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•
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1. Local Card used in Counrty On-Line
2. Local Card used in Counrty On-Line- On-Us
3. Local Card used in Counrty Off-Line
4. Local Card used outside of Counrty - Method 1
5.Local Card used outside of Counrty - Method 2
6. Foreign Card used in Counrty – Method 1
7.Foreign Card used in Counrty – Method 2
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6
BKM Switch System
BANK-A
BANK-B
ISSUER
ACQUIRER
BANK-C
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7
Local Card
used in
Turkey
Credit Card On-Line Authorisation
BANK-B
BANK-A
BKM A.Ş.
ACQUIRER
ISSUER
Approve/Reject
Approve/Reject
Card
Holder
I want to
pay with
my Credit
Card
Merchant
Approve/Reject
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POS machine of A Bank
88
Credit Card of B Bank
Local Card
used in
Turkey
Authorisation if Issuing Bank
can not respond to BKM query
BANK-A
BKM A.Ş.
ACQUIRER
Approve/Reject
Merchant
Based on Predetermined Limits
Approved by Issuing Bank to be used
in case of lack of communication of BKM
with the acquiring bank
I want to
pay with
my credit
card
Approve/Reject
İŞYERİ
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POS machine of B Bank
99
Credit Card of B Bank
Local Card
used in
Turkey
On-Us Transactions
BANK-A
ACQUIRER
Approve/Reject
Merchant
Credit Card of
POS machine of
A
A
Bank
I want to
pay with
my credit
card
Bank
10
10
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Card Holder
Local Card
used
outside of
Turkey
Issuing Bank routes it first toBKM and
BKM routes it to Visa or MasterCard
Method 1
VISA/MC
BANK-B
BKM A.Ş.
ISSUER
Approve/Reject
Local
Card
Holder
I am a
Turkish
citizen. I
want to use
my card
outside of
Turkey
Approve/Reject
Approve/Reject
International
Authorisation Process
is executed
BKM can only handle the Authorisation.
Cleaing and Settlement should be done
with VISA and MasterCard
Approve/Reject
Foreign Merchant
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11
11
Local Card
used
outside of
Turkey
Issuing Bank routes it directly to Visa or MasterCard
Method 2
VISA/MC
BANK-B
ISSUER
Approve/Reject
Approve/Reject
Local
Card
Holder
I am a
Turkish
citizen. I
want to use
my card
outside of
Turkey
International
Authorisation Process
is executed
Approve/Reject
Foreign Merchant
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12
12
Foreign Card
used
in Turkey
If Issuing Bank is not a Local Bank the Acquiring Bank
routes it first toBKM and
BKM routes it to Visa or MasterCard
Method 1
VISA/MC
BANK-A
BKM A.Ş.
ACQUIRER
Approve/Reject
Approve/Reject
Merchant
Approve/Reject
İŞYERİ
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POS machine of A Bank
Approve/Reject
I am a
foreigner. I
would like
to pay with
my credit
card in
Turkey
13
13
Credit Card of a Foreign Bank
Foreign Card
used
in Turkey
If Issuing Bank is not a Local Bank
Acquiring Bank routes it directly to Visa or
MasterCard
Method 2
VISA/MC
BANK-A
ACQUIRER
Approve/Reject
Approve/Reject
Merchant
Approve/Reject
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POS machine of A Bank
I am a
foreigner. I
would like to
pay with my
credit card
in Turkey.
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Credit Card of a Foreign Bank
Domestic Reconciliation/Settlement
BKM
BKM - YTHS
B BANK
A BANK
Central Bank
TCMB
BKM FUND TRANSFER
ACQUIRER
ISSUER
BKM HESABI
CREDIT CARD
TRANSACTION
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PRODUC/SERVICE
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MERCHANT
CARD HOLDER
Debit Card Online POS Authorisation Flow
(Domestic & International)
International
Authorisation
Visa/MasterCard
International Purchase
Cardholder
Merchant
Domestic Purchase
International
Authorisation
Acquirer
Domestic Authorisation
(BKM ISO8583 format)
Payment Schemes:
MasterCard
Visa
International
Authorisation
International
Authorisation
BKM
Domestic Authorisation
(BKM ISO8583 format)
International
Authorisation
(BKM ISO8583 format)
Issuer
(Authorisation Institute)
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16
Debit Card Online Clearing & Settlement Flow
(Domestic)
Domestic Clearing
(BKM format)
Domestic Purchase
Cardholder
Acquirer
Merchant
Net Settlement
Domestic Clearing
(BKM format)
BKM
Net Settlement
Central
Bank*
Net Settlement
Domestic Clearing
(BKM format)
Issuer
* All Acquirers & Issuers including BKM have Clearing Bank accounts within the Central Bank, therefore funds simply transfer between accounts.
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17
Secure e-Payment Infrastructure
Banks
Banks
Customer
Payment
Fraud Protection
Reporting
Storefront API’s
3D Secure
EST Secure e-Payment
Gateway
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18
Future of Payments
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•
Further erosion into cash and other non card payments
Need to ensure balance between parties to foster growth
Risk will continue to be major concern
Regulators will continue to oversee
New technologies and channels
– Mobile
– Voice
– Contactless
– E-payment
– Maximisation of the chip on the card
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19

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