[email protected] payment cards payment cycle introduction
TRANSCRIPT
Supported card product types
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 Purse
Support issuance of Magnetic stripe and Chip (VSDC/M/Chip) cards:
Credit Card Authorisation and Clearing
Types
• 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
BKM Switch System
BANK-A
ACQUIRER
BANK-B
ISSUER
BANK-C
BKM A.Ş.
Approve/Reject
Credit Card of B BankPOS machine of A Bank
I want to pay with my Credit Card
Credit Card On-Line Authorisation
BANK-A
ACQUIRER
BANK-B
ISSUER
Approve/Reject
Approve/RejectMerchant
Card Holder
Local Cardused in Turkey
BKM A.Ş.
Approve/Reject
Credit Card of B BankPOS machine of B BankİŞYERİ
I want to pay with my credit card
Authorisation if Issuing Bank can not respond to BKM query
BANK-A
ACQUIRER
Based on Predetermined LimitsApproved by Issuing Bank to be used
in case of lack of communication of BKMwith the acquiring bank
Approve/Reject
Merchant
Local Cardused in Turkey
[email protected] 1010
Approve/Reject Credit Card of A Bank
POS machine of A Bank
I want to pay with my credit card
On-Us Transactions
BANK-A
ACQUIRER
Merchant
Local Cardused in Turkey
Card Holder
[email protected] 1111
BKM A.Ş.
Approve/Reject
Issuing Bank routes it first toBKM andBKM routes it to Visa or MasterCard
Method 1
BANK-B
ISSUER
VISA/MC
Approve/Reject
Approve/Reject
I am a Turkish citizen. I want to use my card outside of Turkey
Approve/Reject
Local Cardused outside of Turkey
Local Card Holder
Foreign Merchant
InternationalAuthorisation Process is executed
BKM can only handle the Authorisation. Cleaing and Settlement should be done with VISA and MasterCard
[email protected] 1212
Approve/Reject
Issuing Bank routes it directly to Visa or MasterCardMethod 2
BANK-B
ISSUER
VISA/MC
Approve/Reject
Approve/Reject
I am a Turkish citizen. I want to use my card outside of Turkey
Local Cardused outside of Turkey
Local Card Holder
Foreign Merchant
InternationalAuthorisation Process is executed
[email protected] 1313
BKM A.Ş.
Approve/Reject
Credit Card of a Foreign BankPOS machine of A BankİŞYERİ
If Issuing Bank is not a Local Bank the Acquiring Bank routes it first toBKM and
BKM routes it to Visa or MasterCardMethod 1
BANK-A
ACQUIRER
VISA/MC
Approve/Reject
Approve/Reject
I am a foreigner. I would like to pay with my credit card in Turkey
Merchant
Approve/Reject
Foreign Cardused in Turkey
[email protected] 1414
Approve/Reject
Credit Card of a Foreign BankPOS machine of A Bank
If Issuing Bank is not a Local BankAcquiring Bank routes it directly to Visa or
MasterCardMethod 2
BANK-A
ACQUIRER
VISA/MC
Approve/Reject
Approve/Reject
I am a foreigner. I would like to pay with my credit card in Turkey.
Merchant
Foreign Cardused in Turkey
[email protected] 1515
BKM HESABI
BKM - YTHS
ACQUIRER ISSUER
CARD HOLDERMERCHANT
OUTGOING TAKAS
DATA
TCMB
BKM FUND TRANSFER
OUTGOING TAKAS DATA
INCOMING TAKAS
DATA + O/I REPORTS
INCOMING TAKAS
DATA + O/I REPORS
PAYMENT
SALES INFORM
ATION
PAYMENTSTATEMENT
CREDIT CARD TRANSACTION
PRODUC/SERVICE
Domestic Reconciliation/Settlement
BKM
Central Bank
A BANK
B BANK
Debit Card Online POS Authorisation Flow(Domestic & International)
Cardholder
BKM
Issuer(Authorisation Institute)
Domestic Purchase
International Authorisation
Domestic Authorisation(BKM ISO8583 format)
Merchant
Visa/MasterCardInternational Purchase Payment Schemes:
MasterCardVisa
Acquirer
International Authorisation
International Authorisation
Domestic Authorisation(BKM ISO8583 format)
International Authorisation
(BKM ISO8583 format)
International Authorisation
Debit Card Online Clearing & Settlement Flow (Domestic)
Cardholder
BKM
Issuer
Domestic Purchase
Domestic Clearing(BKM format)
Net Settlement
Merchant Acquirer
Domestic Clearing(BKM format)
Domestic Clearing(BKM format)
Net Settlement
Central Bank*
* All Acquirers & Issuers including BKM have Clearing Bank accounts within the Central Bank, therefore funds simply transfer between accounts.
Net Settlement
3D Secure
Storefront API’s
Reporting
Fraud Protection
Payment
BanksBanks
BanksBanks
Secure e-Payment Infrastructure
CustomerCustomer
EST Secure e-PaymentGateway
EST Secure e-PaymentGateway
Future of Payments
• 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