Card Suite Acquiring Management System

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Card Suite

Acquiring

Management

System

Aivars Belis

Lead Business Architect, Cards

Tieto, Financial Services

(2)

Acquiring Business Changing

Conditions

Consumer

behavior

Merchants

view of

payments

Payment

Innovation

(3)

Business and Technical necessity

Configurability

Efficiency

Extendability

Scalability

New Generation

Acquiring

solution must

provide

• User

convenience

• Operation

optimization

• Creation of

new business models

• Competitive

pricing

• Flexible ability to

change

• Multi-level

merchant hierarchy

• Multi-institution

and

multi-branch

processing

Continuously required expansion of business and operational

efficiency

• Open for

integration

(4)

Acquiring Value Chain

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PRE-PROCESSING

SWITCHING & CLEARING

POST PROCESSING

Marketing & Product Offering Acquisition & Contract Mgm Fulfillment Mgm Channel Mgm POS Set-Up ATM Mgm E-Commerce Set-Up M-Commerce Set-Up P2P, Bill and other payments System Configuration Agent Data Mgm Terminal Lifecycle Mgm Campaign Mgm Sales Application Mgm Agreement Mgm Pricing Set-Up Market Analysis Brand Mgm Merchant Segmentation Product Set-Up Customer oriented reports Financial & Statistics reports Operational reports ICO and regulatory reports Business Intelligence Reporting Profitability Mgm Customer Inquires Mgm Contracts & Relationship Mgm Debt Recovering& Collections Merchant Servicing Loyalty Program Mgm Risk Monitoring Merchant Settlement Statementing Merchant Account & Risk Mgm Settlement & Reconciliation Fraud Monitoring Dispute Mgm Accounting Batch Reconciliation Post Processing Clearing Rejects & Exceptions Handling Offline Processing Real Time Processing H2H, ICO, other interfaces Authorization & Stand-In Switching Fraud Prevention

(5)

(6)

Important characteristics

Advanced architecture to launch

new services

Flexible business models to

match customer needs

Account based system

(7)

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Retail Merchant

Account

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Retail Merchant Account Management

Retail product

Merchant data

management

Retail agreement

management

Accounting

Merchant

settlement

Reporting

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Product Concept

• A

product

is a combination of different value sets which

describe product acceptance and settlement characteristics

Product

Accepted card

brands /

currency

Accounting

rules

Target

segments

Involved

parties

Financial

(10)

Product Structure

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Parties

Responsibility

Accounting

rules

Chart of

accounts

(11)

Product setup

(12)

Retail Merchant Account Management

Retail product

Merchant data

management

Retail agreement

management

Accounting

Merchant

settlement

Reporting

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Merchant data

management

(13)

Merchant Data Structure

Merchant

Merchant data

Addresses

Assets

Contact info

Acceptor data

Addresses

Other details

- Legal

- Billing

- Postal

- Web

- Legal name

- Legal form

- Taxpayer ID

- Trade Name

- Acceptor ID

- Acceptor name

- MCC

- Contact persons

- Phone

- Fax

- E-mail

- …..

- Merchant Bank Code/Name

- SWIFT code

(14)

Merchant Hierarchy

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…

Outlet 3

Outlet 2

…

Merchant 2

Merchant 1

Sub Merchant

…

Master

Merchant

Terminal 1

Terminal 2

Outlet 1

(15)

(16)

Application Processing Flow

Create new merchant application

Add agreement condition

Add terminal information

Submit

Approve / reject / decline

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(17)

Retail Merchant Account Management

Retail product

Merchant data

management

Retail agreement

management

Accounting

Merchant

settlement

Reporting

Retail agreement

management

(18)

Merchant Service Charge structure

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Card product

Merchant service

charge

Transaction type

Card technology

Transaction region

Purchase

Cash Withdrawal

…..

On-us

…..

Chip

Contactless

…..

VISA Electron

MC Commercial

(19)

Value-added Features

Fees

At Merchant

level

At outlet

level

At

terminal

level

Detailed statement fee

Regular subscription

fee

Risk assessment fee

Terminal setup fee

Terminal maintenance

fee

(20)

Retail Merchant Account Management

Retail product

Merchant data

management

Retail agreement

management

Accounting

Merchant

settlement

Reporting

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Merchant

settlement

(21)

Currency Conversion

• Settlement currency could be selected based on set-up

Transaction ccy

Settlement ccy

USD

EUR

USD

EUR

USD

EUR

USD

EUR

USD

RUB

USD

EUR

(22)

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Payment

to Merchant

Payment

to Merchant

Invoice

Total

turnover

Merchant

service

charge

Net settlement

Gross settlement

Merchant Settlement

Total turnover

Merchant

service

(23)

Merchant Reimbursement Levels

MERCHANT

ALL OUTLETS

ALL CARD BRANDS

MERCHANT

VISA

ALL OUTLETS

VISA

ALL OUTLETS

MasterCard

ALL OUTLETS

Amex

…….

LEVEL 1

(24)

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Merchant Reimbursement Levels

OUTLET 1

MERCHANT

ALL CARD BRANDS

OUTLET 2

OUTLET n

VISA

MC

AMEX

VISA

MC

Maestro

VISA

MC

OUTLET 1

OUTLET 2

OUTLET n

MERCHANT

LEVEL 3

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Retail Merchant Account Management

Retail product

Merchant data

management

Retail agreement

management

Accounting

Merchant

settlement

Reporting

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Merchant data

management

Reporting

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Supported Report Types

• GL reports

• Posting journals

• Debt aging reports

• Merchant statements

• Account turnover report

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Terminal

Lifecycle

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Terminal Lifecycle Management

Stock

Management

Terminal

Lifecycle

Management

Terminal

setup and

Maintenance

fees

Invoicing

Job

ticketing

Reporting

(31)

(32)

Terminal Lifecycle

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Terminal lifecycle example

Initiation

Preparation

Installation & support

O

u

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B

a

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k

S

u

p

li

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r

In stock In

configuration In testing

Broken Installed Uninstalled In verification In-repair Terminal request

New

terminal

Destroyed

Out of

stock

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Devices list

Filters area &

stock statistics

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Acquirer discount

programme

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Acquirer Discount Programme

• Merchant service fee discount

• Rental fee discount

(37)

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Operator

Workplace

(38)

Centric Workplace

Agreements

Accounts

Transactions

Reports

Communicati

on history

Other

possibilities

(39)

Merchant

hierarchy and

attributes

Accounts of the

selected

agreement

Acceptor

terminals with

software attributes

Pending

applications of the

current Merchant

Transactions of

the current

merchant

Registered

communication

events with a

merchant

Completed or

closed

applications of the

current Merchant

(40)

©

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Today’s Bottle Necks

Retailer

Big retailer

Small retailer

LOYALTY

Flexible

comissions

Different

settlement

schemes

Compliance to

security standarts

Compliance to

Automated

(42)

Business Growth with AMS

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@

Hotels

Retailer

networks

Petrols

$

Airlines

Tier 1

Merchants

(43)

Terminal setup Manual Process

Complexity

Supplier

Call-center

Technical specialist

Outlet

STOCK

Bookkeeping

Installator

(44)

Processes Optimization with TLMS

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Terminal lifecycle example

Initiation Preparation Installation & support

O u tl e t B a n k S u p p li e r

In stock In

configuration In testing

Broken Installed Uninstalled In verification In-repair Terminal request New terminal Destroyed Out of stock

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Summary – Customer Benefits

Cost

reduction

Revenue

increase

Risk

reduction

Capital

reduction

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• Improved

customer service

• Maximum work

efficiency

• Automation

• Optimization

• Flexibility

• Integration

• Future-proof

investment

point

• Security

requirements

• Access

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