full service Your partner for payment and card processing Sound solutions, solid results
Contents p4 Equens at a Glance Equens activities and key figures p6 Payment Services Automated Clearing House and Business Process Outsourcing SEPA Services Other Payment Services p13 Next-Generation Services M- and E-Commerce p14 Subsidiaries A group of specialists forms one processing partner p18 Contact p10 Card Services Acquiring Services Issuing and Future-Proof Services 3
Equens at a Glance Equens SE is one of the largest payment processors in Europe, leading the market for future-proof payment and card solutions. With clients and partnerships in numerous European countries, we offer pan-european market coverage from offices in five countries the Netherlands, Germany, Italy, Finland and the United Kingdom. Furthermore, we have a strategic partnership with the Federal Reserve Banks in the United States for the processing of intercontinental payments. Equens was established in 2006 as Europe s first pan-european payment processor. This followed the merger of Europe s two large payment processors, the Dutch Interpay Nederland B.V. and the German Transaktionsinstitut für Zahlungsverkehrsdienstleistungen AG. Initially operating as a holding company, Equens was formed in July 2008 as Europe s first Societas Europaea payment processor. In the same year, the company extended its geographical coverage by establishing Equens Italia which turned from a separate legal entity to a permanent establishment of Equens SE at the end of 2013. Strong foothold in Europe Equens Head Office Equens SE Office Countries with clients Countries with CSM partners Countries with clients and CSM partners Other EU countries With an annual processing volume of 10.6 billion payments, 4.7 billion POS and ATM transactions and 27.5 million issued credit, debit and prepaid cards per year, Equens SE has a European market share of more than 12.5%. Sound solutions, solid results 4
Portfolio Payment services Interbank (Automated Clearing House, ACH) and intrabank (Business Process Outsourcing, BPO) payment processing of a wide variety of payment products - Electronic and paper-based - Domestic payments like UK BACS and HU Forint - SEPA payments - High-value and urgent payments (HVP) - International payments (Multi-currency payments, MCP) - International cheque collection - Online banking and mobile app in the front office world - Mandates SEPA services - SEPA credit transfer - SEPA direct debit - SEPA value added services - Corporate Payment Services (CPS) - SEPA-compliant Electronic Database Alignment (SEDA) Supporting services Connectivity services (e.g. SWIFT, EBICS, CPS etc.) Client-specific services Settlement Services - BICOMP - TARGET2 Full service, flexible solutions Dual processor: card and payment processing Complete and modular service portfolio One-stop shopping and customisable packages Reliable services, practical advice, proven solutions Future-proof payment solutions Cutting edge enterprise technology with active-active solutions, both in mainframe and distributed systems Wide range of facility management and outsourcing services Cards services Acquiring services - POS acquiring hosting - POS and ATM terminal solution - ATM acquiring hosting - Merchant services - Switching - E-commerce services - Affiliate services - Managed services - Transaction processing - Clearing and settlement - Risk and fraud management Issuing services - Issuance and managed services - Issuing transaction processing - Switching, authorisation and authentication - Affiliate services - Managed services - Card life-cycle management - Issuer clearing - Risk and fraud management Future-proof card-related services - Contactless card services - Mobile NFC payment services Next-generation payments M-commerce payments E-commerce payments 5
Payment Services Overview Integrated end-to-end portfolio value chain Card transaction processing Card issuing Transaction initiation Terminal/ Hosting Switching Authorisation Clearing Payment instructions Payment transaction processing Payment instructions Initiating bank Back office processing CSM processing Beneficiary bank Back office processing Reporting to account holders - Verification, validation - Correction, amendment - Data processing/output - Posting, booking - Clearing - Settlement - Receiving - Data processing - Booking - Reporting Simplify your business operations by using the industry s leading payment services. Whether your transactions are domestic, cross-border or SEPA formats (compliant), direct debits, credit transfers or cheques, straight-throughprocessed or demand special attention due to high value, you can count on our reliable, secure, and fast processing platforms and services which support you at the lowest possible transaction and operating costs based on extraordinary possibilities of synergy effects Equens as a service provider is able to raise. Our portfolio covers the full range of requirements in the domain of payments: From the online channels (mobile app), online banking (internet), corporate access and its related features and service up to dialogue services at the bank s branch (counter), nearly all standard front office areas are part of Equens value chain of payment processing. Cover the complete area of payments with our back office processing: mass payments (domestic like UK BACS or HU Forint and SEPA), high value payments (RTGS) and multicurrency payments including all required features and interfaces to process them in an optimized STP rate. The value chain at the bank side is extended by investigation, compliance services and archiving. Remain flexible with our Corporate Payment Services (CPS). To which extent they could be offered for intelligent processing of your SEPA and domestic payment flows can be determined after analyzing your requirements and the specific requirements of your corporate customers. Payments Portfolio Interbank (Automated Clearing House, ACH) and intrabank (Business Process Outsourcing, BPO) payment processing of a wide variety of payment products - Electronic and paper-based - Domestic payments like UK BACS and HU Forint - SEPA payments - High-value and urgent payments (HVP) - International payments (Multi-currency payments, MCP) - International cheque collection - Online banking and mobile app in the front office world - Mandates SEPA services - SEPA credit transfer - SEPA direct debit - SEPA value added services - Corporate Payment Services (CPS) - SEPA-compliant Electronic Database Alignment (SEDA) Supporting services Connectivity services (e.g. SWIFT, EBICS, CPS etc.) Client-specific services Settlement services 6
Payment Services Automated Clearing House and Business Process Outsourcing Smart sourcing: Outsourcing the right processes at the right time Organising your business efficiently means using your resources in the most profitable way. Thus: outsourcing activities that do not form part of your core business. Outsourcing your card and payment processing is certainly part of this strategy. The question is: which parts can best be outsourced? And to whom? Smart sourcing is about outsourcing the right processes at the right time. In co-operation with a trustworthy partner with a proven track record. Equens can advise and support you in this process. With over forty-five years of experience in the cards and payments industry, a complete service portfolio, expertise in the interbank and intrabank environment, local and European expertise and clients throughout Europe, we can be that smart sourcing partner. Smart sourcing: where your needs and our expertise in payment processing meet. Access the industry s fastest clearing and settlement service with Equens. Our growing network of banks and international partnerships will continually extend the reach of your payment service. One example: Equens inter-csm network for SEPA has become the industry s leading clearing mechanism your single point of contact for the complete range of SEPA payments. With full reach to the SEPA zone, benefit from competitive rates for domestic and cross-border transfers. Rely on us for fast and simple compliance with industry standards for credit transfers and for direct debits as well as management of all your non-core banking activities. Our value added services comprise enhanced features that extend market reach and optimize your risk management. Reduce and control your operating costs and react flexibly in times when demand is not stable and capacity is fluctuating. Choose Equens for full Business Process Outsourcing (BPO) and benefit from our economies of scale. Engaging us to deliver a full payment processing service for domestic, SEPA and international payments allows you to outsource payment activities and focus on your core business. Let s discuss together which model and extent of BPO may be the most adequate to fit your requirements. Interbank (ACH) and intrabank (BPO) payment processing of a wide variety of payment products Electronic and paper-based Equens supports electronic and paper-based input in different formats via multiple channels Domestic payments Your one-stop partner for all your domestic payment processing. SEPA payments Make cost-efficient payments across SEPA countries by using Equens SEPA payment services. High-value and urgent payments (HVP) Facilitate major business deals with the most rapid and trusted notification of change in ownership by using TGT2 or EURO1 (EBA) International payments (Multi-currency payments, MCP) Your one-stop partner for all your international payment processing in foreign currency and euro ensuring full automatic processing (STP-processing) that is controllable by regulations (conditions, routing, bookings) using standard interfaces but flexible by customizing. International cheque collection Equens offers you export and import cheque processing based on your existing cashletter agreement, remittance letter etc. Our service is completed by an automatic reminder and matching functionality. Online banking and mobile app in the front office world Equens offers an online banking feature and a mobile app supporting your customer with the latest and modern channel architecture and features to steer and manage their payment processing portfolio. Mandates Exchanging, processing and routing mandate related information between domestic financial institutions. 7
Payment Services SEPA Services SEPA services SEPA credit transfer and direct debit Equens offers you full reach for SEPA credit transfer (SCT) and SEPA direct debit (SDD) via our Equens CSM community, inter-csm agreements (based on the EACHA framework) and EBA and a wide range of services for the back office processing of your outgoing and incoming SEPA payments including additional optional services (AOS). Select a complete service that fully integrates with your operating systems, or choose from our modular service portfolio to build a customized solution. Within our SEPA BPO processing Equens can provide you with a wide range of functionalities like: - corporate access - online banking - online limit check - creation of posting records - sanction (compliance) checking - support of different clearing channels (e. g. EBA, Bundesbank, Equens CSM, community clearing, bilateral clearing) - archiving - reporting Equens supports a wide range of connectivity channels to exchange payment transactions with you and with other banks and ACHs. SEPA value added services We cover the full value chain, from an effective inquiry service for queries concerning your transactions to comprehensive reports, including positive settlement, positive validation, positive cancellation and recap clearing. Corporate Payment Services As a corporate, deliver your SCT and SDD transactions from multiple initiating banks directly to Equens in one message. SEPA-compliant Electronic Database Alignment (SEDA) We exchange, process and route mandate related information between two financial institutions from different countries according to the business rules specified by ABI. 8
Payment Services Other Payment Services Our customer support service registers and manages all types of service requests or inquiries in a multi-channel environment by means of the internet, e-mail, telephone or operators. All data processed by Equens is digitally archived and available to you on request. You can use this information for customer invoicing, optimization of your production processes, or marketing purposes such as inquiries for the purpose of claim handling and investigations. Equens supports you throughout the complete payment process and supports several connectivity standards for the communication with your bank. Supporting services Compliance services (Embargo and FATF) Inquiries and investigations Archiving, billing, management information Corporate access Consulting and training, reporting Manual transaction input/repair/verify Connectivity services SWIFT Services, Connect:Direct, Secure File Transfer, EBICS Client-specific services Interfaces (batch and request/reply) Formats and format conversion Settlement services BICOMP TARGET2 9
Card Services Overview Reliable, easy to use, secure and cost-efficient. Cards form the backbone of the retail payments sector. As the industry s largest independent full service provider, Equens delivers you a complete end-to-end and vendorindependent card service, including payment terminal solutions, acquiring, issuing, issuance, risk management and payment clearing as well as settlement. Our payment systems are multi-brand, multi-currency, multi-use, multi-device and multi-protocol. Choose from our modular portfolio of cost-efficient products and services or let us help you to develop innovative solutions that drive sales and seize new opportunities for card payments, such as contactless cards or mobile payments. Cards Portfolio: Acquiring services - POS acquiring hosting - POS terminal solution - ATM acquiring hosting - Merchant services - Switching - E-commerce services - Affiliate services - Managed services - Transaction processing - Clearing and settlement - Risk and fraud management Issuing services - Issuance and managed services - Issuing transaction processing - Switching, authorisation and authentication - Affiliate services - Managed services - Card life-cycle management - Issuer clearing - Risk and fraud management Future-proof card related services - Contactless card services - Mobile NFC payment services 10
Card Services Acquiring Services Acquiring services As Europe s largest independent service provider, we deliver vendor-free solutions. Ultra-fast switching and a high-capacity network will reduce your transaction times and increase your productivity. Our network of more than 900,000 payment terminals provides a cost-efficient service supported by an industry-leading infrastructure. POS acquiring hosting and transaction processing Full end-to-end processing over our high-capacity network will instantly collect payments from all major credit and debit cards and private label cards. POS terminal solution Full service internet protocol enabled POS terminal solution for acceptance of all cards. ATM acquiring hosting Continuous service over our highly reliable network, providing connectivity for all brands of ATMs and all major card schemes. Merchant services Comprehensive support package with full support for merchants in their cards payment business. If payment terminals, international brands, credit and debit cards we can cover the entire package, including chargeback, handling and settlement of merchant service charges. Switching We provide extremely fast hosting and switching of payments with debit, credit and private label cards. E-commerce services Fast, safe and easy payments via online shop and several payment service providers. Give your clients the freedom to accept credit and debit card payments securely via the internet. Managed services Our managed services comprise risk management and fraud handling as well as fraud registration and reporting and cardholder services. Clearing and settlement Our services geared towards settlement with both the merchant and the schemes or issuers range from processing the transaction information into clearing messages to the actual payment of the merchant, as well as supplying relevant booking information to the bank of the acquirer and the merchant. Risk and fraud management Detect with our merchant and ATM monitoring service signs for fraudulent activity. Equens uses advanced monitoring tools to recognise these patterns in the transaction database. Affiliate services Make use of our acquiring subsidiary license or of our services, processing and administrative functions. 11
Card Services Issuing and Future-Proof Services Issuing services From data preparation for card issuance and management, key management and PIN generation to the processing of transactions like (delegated) authorization services, you can be in full control of your card issuing service with Equens. We have over 30 years of experience within security, chip and payment applications and an annual volume of more than 11 million cards issued. Take advantage of some of the lowest card issuance costs in Europe, and deliver your cardholders a distinctive card that is welcomed around the world. Equens provides debit as well as credit card services, contact as well as contactless cards (or combined), virtual and mobile contactless payment applications and has a large number of additional prepaid card services. Issuance and management services Create a card that fully meets your marketing objectives. Low-cost, low-risk, high-value. Equens is able to provide basic data preparation or full issuing back office solutions allowing you to be in control of your card base without the need of managing the complex back office environment, ensuring compliancy. Issuing transaction processing Give your cardholders full access to all major card schemes with switching services that are tailored to your systems and processes. Equens can be your authorization insurance providing you with stand in services or you can fully outsource your authorization and authentication to Equens. Fast and secure clearing and settlement of your transactions. Enjoy low operating costs and minimal exception processing. Affiliate services As Equens is a principle member of Mastercard and Visa, Equens can provide you with affiliate license services, providing you with the ability to launch a card program in a cost-efficient way, being compliant at the same time. Managed services Equens can provide you with a broad scale of additional services like dispute management and risk and fraud management services. Extended management reporting, delivering you (near) real time data to support you in business decisions is also part of Equens' portfolio. Card life-cycle management Equens manages basic information of the cardholders including limits and restrictions of the card. The card data, be it credit, debit or prepaid cards, is accessible for you as issuer. You can also make use of our full issuing back office services and let us manage the data and card status (card life cycle management) and process mutations. Issuer clearing For all the transactions, we can provide issuer clearing and send you a file containing all transactions performed by your cardholders. Risk and fraud management Detect and monitor potential fraudulent transactions and prevent fraud loss. With our advanced tooling and experienced staff, changing fraud patterns and modus operandi will be detected at an early stage. Future-proof services Contactless cards You and your customers can fully enjoy the benefits of contactless payments. Equens has enabled its full service portfolio to be ready for the large enrolment of contactless cards and terminals. - Enables consumers to pay via card or device without swiping or dipping - Displaces cash for every day purchases - Enhances electronic card transactions - Advantage of cards: dual purpose of contactless and the more conventional way of paying through a 'normal' EMV chip and magstripe - Faster, simpler way to pay Mobile NFC payment services - Enable your customers to pay with their mobile handset by having a payment application on your SIM (or another secure part of your handset) and with the help of NFC technology. Equens can support you with providing the required mobile processing services ensuring a short time to market both on issuing and on acquiring side. 12
Next-Generation Services M- and E-Commerce Prepare yourself for the evolving next generation of payments. With our innovative solutions we develop new services that fulfil your future needs. Just as new types of payments are part of your business, processing them is part of ours. Our experts have attained a high level of knowledge in the field of contactless payments and mobile services. Rely on our expertise. Next-generation portfolio: M-commerce payments - Mobile phone as a card replacement (NFC payments) - Mobile phone as a terminal replacement (mobile POS) - Peer to peer payments - Mobile top-up - Mobile banking and payment app E-commerce payments - White labelled PSP services - Integrated POS and e-commerce reporting Many possibilities, one processing partner. Make the most of your next-generation payments New markets and new technologies lead to rapid developments in the field of m- and e-commerce and contactless payments. Evidently, you want to grasp the opportunities offered by the next generation of payments. However, this requires a lot of time, money and dedication. Outsourcing the processing of these payments might be just what you need in order to concentrate on new and emerging opportunities. But to whom? Equens has in-depth knowledge of and vast experience in the processing of new types of payments. We can advise and support you from the design phase through to permanent integration with your existing processing environment. This will allow you to focus on innovation, distinguish yourself and own the relation with your customer. Just as new types of payments are part of your core business, processing them is part of ours. 13
Subsidiaries A group of specialists forms one processing partner Equens SE PaySquare SE InterEGI B.V.* DZ Service GmbH 100 % 100 % 100 % BD-POS GmbH 100 % Benefit from our international network with sustainable, future-proof services. Enjoy the convenience of a single transaction platform, simplify your transaction management und reduce your costs by using Equens as your specialised partner. Ranging from clearing and settlement (CSM) as well as card services to business processing outsourcing, our group structure includes specialised companies with years of valuable experience. PaySquare SE PaySquare SE was formed in 2013 by merging montrada GmbH and PaySquare BV. The company provides a complete solution for terminal delivery and maintenance, card acceptance and network services for domestic and international brands (Girocard, ELV, Maestro, V PAY, MasterCard, Visa, JCB, UnionPay, Discover and Diners Club). PaySquare SE is headquartered in Utrecht, The Netherlands, and has additional local branches in Frankfurt, Germany, and Warsaw, Poland. Benelux PaySquare is the leading service provider in the Netherlands in the acceptance of credit cards and international payment cards and is the market leader in many sectors. PaySquare is licence holder for the acceptance of Master- Card, Visa, JCB, UnionPay, Diners Discover and Maestro. PaySquare is the first merchant acquirer in the Benelux to offer such a wide variety of international means of payment and the first to take advantage of the everincreasing influx of Asian tourists. * InterEGI issues Prepaid Chipknip cards in the Netherlands. This product will be discontinued end 2014. 14
Germany and Poland In Germany and Poland, PaySquare SE offers its clients a full-service acquiring and network service provision of consultancy services, terminal installations and customer support for card-based payment transactions. PaySquare products In the Netherlands: Acceptance POS Card acceptance E-Commerce Card acceptance MO/TO Card acceptance Dynamic Currency Conversion Merchant Data Online In Germany and Poland: POS and ATM acquiring Network service operation, since 2002 accredited by "Deutsche Kreditwirtschaft" (board of German banks) Terminals (for rent or for sale) - Different terminal functions: domestic/international brands, contactless payments (VISA paywave, MasterCard PayPass), gift cards, bonus cards, online top-up of your prepaid telephone card, tax free, account selection, reference number etc. - Card Reader: chip, magnetic stripe, NFC, hybrid (magnetic stripe/chip) - Communication interfaces: LAN (TCP/IP), ISDN, analogue, GPRS/GSM, WLAN, bluetooth, 0800 cost free telephone number Services (hardware and software, logistics, hotline, reparation, on-site services, installation and configuration management via subsidiary BD-POS) E-commerce solutions Facts and figures In the Netherlands: Partner of thuiswinkel.org Leading acquirer in the Netherlands and growing in Belgium and Luxembourg Acquiring of all major international payment products Strong in hospitality and luxury retail Large retailers In Germany and Poland: Acquiring > 4,000 ATMs With > 80,000 terminals and services for >75,000 clients, montrada processes payments at the POS and through the internet securely and fast Processes more than 12 billion of trading turnover and more than 255 million transactions per year One of the five largest network operators in Germany Partner of 10 of the 50 largest trade companies in Germany Partner of various leading banks White label network operation solutions Why PaySquare? In the Netherlands: A single service provider for the acceptance of all leading credit cards and international payment cards Advanced, versatile and secure payment systems Full transparency in relation to charges Acceptance of credit cards and international payment cards in your (physical) store will be granted within three days The latest information and advice on payments, tailored to your specific sector In Germany and Poland: As of 2007, international principal member (acquiring Licence for MasterCard and VISA) As of 2008, certified according to PCI DSS as NSP (network service provider), acquirer and PSP (payment service provider) for e-commerce/moto clients As of 2010, the first network operator accredited as payment institution (according to European law) One of the first providers of contactless payments (Visa paywave, MasterCard PayPass) in Germany as of December 2011 15
DZ Service GmbH The task of Karlsruhe-based DZ Service GmbH is to take charge of and under its own responsibility carry out substantial parts of the operational payment transaction processes associated with the paper-based client orders of a bank. In the process, the modular approach taken for the range of services offered by DZ Service has proven to be especially successful. Clients are able to organise the scale of their outsourcing flexibly and, in particular, employ the technical and human capacity still available according to the situation. The modular range of services can be utilised progressively from purely using the system across the outsourcing of peak volumes through to full outsourcing. DZS products Client document processing: Recording - Transportation or scanning Processing - Interpreting - Correcting - Reviewing Archiving - Archiving and research - By means of the computer centre archives or a CD/DVD solution Other services Consulting Statistics Organisational instructions User help desk Monitoring and implementation of legislative amendments Performance of training courses 16
Facts and figures Over 140 million documents processed per year for the majority of the cooperative Banks and several private banks Maximum quality and security at a fair price since 1995 Extensive technical infrastructure with a daily stand-by processing capacity in accordance with growing customer needs and seasonal variations System was the first in the industry to be 'SEPA-ready' An average annual price reduction of 3.8% since the company was formed Price cuts are even passed on to customers during the contract period Why DZ Service? Costs decrease in line with a declining document volume; low or no fixed costs No or low investment necessary Independence from bank rates Paper-based payment transactions are increasingly losing in significance among banking clients Compliance with all auditing requirements 17
Contact www.equens.com sales@equens.com +31(0)88 38 56020 www.equens.com/newsletter twitter.com/equens linkedin.com/company/equens blog.equens.com/eu Sound solutions, solid results 18