LLOYDS BANK CARDNET CARDNET

Transcription

1 LLOYDS BANK CARDNET CARDNET

2 HOSTED BY JULIET MANN JOURNALIST & PRESENTER Good Morning

3 GETTING TO GRIPS WITH NEW GOVERNANCE A REGULATIONS UPDATE CARDNET

4 HOSTED BY JULIET MANN JOURNALIST & PRESENTER Communicate with us in real time Use the contact form to send us questions and comments

5 INTRODUCED BY AIDENE WALSH MANAGING DIRECTOR, LLOYDS BANK CARDNET regulation is an area where things are changing rapidly

6 PRESENTED BY STEVEN BISOFFI SENIOR MANAGER, LLOYDS BANK CARDNET GUEST SPEAKER MARC TEMMERMAN DIRECTOR EUROPEAN AFFAIRS, VISA EUROPE

7 AGENDA Interchange Regulation Changes Payment Systems Regulator (PSR) Update New Payment Services Directive ( PSD2 ) Final Text

8 EU AIMS Integrate Payments Environment Promote Competition Stimulate Innovation Improve Services Open Access to Users

9 INTERCHANGE FEES EXPLAINED MERCHANT You ACQUIRER Lloyds Bank Cardnet CARD ISSUER Bank Merchants pay interchange fees as part of the Merchant Service Charge to the acquirer and these are passed onto the card issuers.

10 KEY CHANGES TO INTERCHANGE REGULATION Interchange fee caps enforced (0.2% on domestic debit cards, 0.3% on credit cards) Other changes: Surcharging recommended removal for consumer transactions Honour All Cards rule will change

11 SURCHARGING AFFECTED MOST?

12 GUEST SPEAKER MARC TEMMERMAN DIRECTOR EUROPEAN AFFAIRS, VISA EUROPE from a Visa perspective, how will the new laws play out?

13 DEBIT CARD FEES Several national options Members have not specified rates No option that applies to everyone

14 HONOUR ALL CARDS RULE Merchant has option not to accept all products under a given brand Issuers to identify product type on plastic and in the chip Europay, MasterCard, Visa ( EMV ) specifications require update Impact on terminals Bank Identification Number ( BIN ) tables only interim solution possible

15 PAYMENT SYSTEMS Separation of scheme and processing functions will have implications EBA standards intended to be published by December Will change structure of card scheme companies and how they deal with customers

16 PRESENTER STEVEN BISOFFI SENIOR MANAGER, LLOYDS BANK CARDNET there are two key Articles that drive greater transparency

17 TRANSPARENCY I/C REGULATION Article 12 Dec 15 Article 9 Jun 16 Greater transparency of data for merchants

18 HOSTED BY JULIET MANN JOURNALIST & PRESENTER Send in your questions using the window underneath your player

19 PAYMENT SYSTEMS REGULATOR ( PSR )

20 WHAT THE PSR IS DOING Consultation results in December/January Outlined how different regulators will be responsible for different Articles Collaborating with EBA to oversee separation of scheme and processing

21 PSR: CARDNET RESPONSE Feed back customer issues to PSR Looking to implement new pricing proposition New solution to provide all customers with greater transaction data

22 PSD Final PSD2 text released 2017 onwards Expected date for implementation at national level Will replace the existing PSD with a wider scope Aims to create an integrated single market for electronic payments Will expand regulations at a Europe-wide level to take into account the new payments landscape

23 FINAL PSD2 TEXT KEY DETAILS Security of e-commerce payments Reporting and monitoring of payments Surcharging prohibition

24 UK EXPECTED PSD2 TIMINGS FCA expected to outline transition within three to six months Timeline for completing transition late 2017 or early 2018 UK regulators could ban surcharging ahead of PSD2 implementation

25 GUEST SPEAKER MARC TEMMERMAN DIRECTOR EUROPEAN AFFAIRS, VISA EUROPE what challenges do you see PSD2 creating in the payments market?

26 PSD2 - AUTHENTICATION EBA to publish technical standards for adoption by European Commission One-size-fits-all system will not work Risk-based approach will be required

27 PRESENTER STEVEN BISOFFI SENIOR MANAGER, LLOYDS BANK CARDNET any update on regulations around cyber security?

28 DATA SECURITY STANDARDS PCI DSS to come under increased scrutiny Data breaches will have to be reported to regulators Visa to focus on risk more than monitoring

29 HOSTED BY JULIET MANN JOURNALIST & PRESENTER Send in your questions using the window underneath your player

30 CONTENT SUMMARY Interchange Regulation will empower merchants and give them more choice PSD2 will lead to greater competition and increased innovation Other new regulations and new regulators mean it is a complex time for merchants

31 LLOYDS BANK CARDNET VIEW Engaging with regulator Relaying customer feedback to regulator Looking to introduce new pricing proposition Making data more accessible

32 LIVE Q&A CARDNET