2011 Tieto Corporation Card Suite Acquiring Management System Aivars Belis Lead Business Architect, Cards Tieto, Financial Services Aivars.Belis@tieto.com
Acquiring Business Changing Conditions Consumer behavior Payment Innovation Merchants view of payments 2 2011 Tieto Corporation
Business and Technical necessity Continuously required expansion of business and operational efficiency Configurability Creation of new business models Competitive pricing Flexible ability to change New Generation Acquiring solution must provide Efficiency Extendability User convenience Operation optimization Open for integration Addition of new processes Scalability Multi-level merchant hierarchy Multi-institution and multi-branch processing 3 2011 Tieto Corporation
Acquiring Value Chain PRE-PROCESSING SWITCHING & CLEARING POST PROCESSING Marketing & Product Offering Acquisition & Contract Mgm Fulfillment Mgm Channel Mgm Real Time Processing Offline Processing Post Processing Merchant Account & Risk Mgm Merchant Servicing Reporting Market Analysis Campaign Mgm System Configuration POS Set-Up H2H, ICO, other interfaces Clearing Settlement & Reconciliation Merchant Settlement Profitability Mgm Customer oriented reports Brand Mgm Sales Agent Data Mgm ATM Mgm Authorization & Stand-In Rejects & Exceptions Handling Fraud Monitoring Statementing Customer Inquires Mgm Financial & Statistics reports Merchant Segmentation Application Mgm Terminal Lifecycle Mgm E- Commerce Set-Up Switching Dispute Mgm Loyalty Program Mgm Contracts & Relationship Mgm Operational reports Product Set- Up Agreement Mgm M- Commerce Set-Up Fraud Prevention Accounting Risk Monitoring Debt Recovering& Collections ICO and regulatory reports Pricing Set- Up P2P, Bill and other payments Batch Reconciliation Business Intelligence 4 2011 Tieto Corporation
Solution High-level design 5 2011 Tieto Corporation
Important characteristics Advanced architecture to launch new services Flexible business models to match customer needs Account based system 6 2011 Tieto Corporation
2011 Tieto Corporation Retail Merchant Account Management
Retail Merchant Account Management Retail product Reporting Merchant data management Merchant settlement Retail agreement management Accounting 8 2011 Tieto Corporation
Product Concept A product is a combination of different value sets which describe product acceptance and settlement characteristics Accepted card brands / currency Financial conditions Product Accounting rules Involved parties Target segments 9 2011 Tieto Corporation
Product Structure Parties Responsibility Accounting rules Chart of accounts 10 2011 Tieto Corporation
Product setup Customer Segmentation 11 2011 Tieto Corporation
Retail Merchant Account Management Retail product Reporting Merchant data management Merchant settlement Retail agreement management Accounting 12 2011 Tieto Corporation
Merchant Data Structure Merchant Merchant data - Legal name - Legal form - Taxpayer ID - Trade Name Addresses - Legal - Billing Assets - Merchant Bank Code/Name - SWIFT code - Credit Account / Debit Account Contact info - Contact persons - Phone - Fax - E-mail Acceptor data - Acceptor ID - Acceptor name - MCC Addresses - Postal - Web Other details -.. -.. -.. 13 2011 Tieto Corporation
Merchant Hierarchy Master Merchant Sub Merchant Sub Merchant Merchant 1 Merchant 2 Outlet 1 Outlet 2 Outlet 3 Terminal 1 Terminal 2 14 2011 Tieto Corporation
Application New Merchant 15 2011 Tieto Corporation
Application Processing Flow Create new merchant application Add agreement condition Add terminal information Submit Approve / reject / decline 16 2011 Tieto Corporation
Retail Merchant Account Management Retail product Reporting Merchant data management Merchant settlement Retail agreement management Accounting 17 2011 Tieto Corporation
Merchant Service Charge structure VISA Electron Card product MC Commercial.. Merchant service charge Transaction type Purchase Cash Withdrawal.. Transaction region On-us.. Card technology Chip Contactless.. 18 2011 Tieto Corporation
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 19 2011 Tieto Corporation
Retail Merchant Account Management Retail product Reporting Merchant data management Merchant settlement Retail agreement management Accounting 20 2011 Tieto Corporation
Currency Conversion Settlement currency could be selected based on set-up Transaction ccy Settlement ccy Transaction ccy Settlement ccy USD USD USD EUR USD USD USD EUR USD USD USD USD USD EUR USD USD USD EUR USD EUR USD RUB USD EUR 21 2011 Tieto Corporation
Merchant Settlement Net settlement Total turnover Merchant service charge Payment to Merchant Gross settlement Total turnover Payment to Merchant Merchant service charge Invoice 22 2011 Tieto Corporation
Merchant Reimbursement Levels MERCHANT LEVEL 1 ALL OUTLETS ALL CARD BRANDS MERCHANT LEVEL 2 VISA MasterCard Amex. ALL OUTLETS ALL OUTLETS ALL OUTLETS ALL OUTLETS 23 2011 Tieto Corporation
Merchant Reimbursement Levels MERCHANT LEVEL 3 OUTLET 1 OUTLET 2 OUTLET n ALL CARD BRANDS ALL CARD BRANDS ALL CARD BRANDS MERCHANT LEVEL 4 OUTLET 1 OUTLET 2 OUTLET n VISA MC AMEX VISA MC Maestro VISA MC 24 2011 Tieto Corporation
Settlement Calendar 25 2011 Tieto Corporation
Retail Merchant Account Management Retail product Reporting Merchant data management Merchant settlement Retail agreement management Accounting 26 2011 Tieto Corporation
Supported Report Types GL reports Posting journals Debt aging reports Merchant statements Account turnover report Quarterly reports to VISA and MasterCard 27 2011 Tieto Corporation
Reports 28 2011 Tieto Corporation
2011 Tieto Corporation Terminal Lifecycle Management
Terminal Lifecycle Management Stock Management Terminal Lifecycle Management Terminal setup and Maintenance fees Invoicing Job ticketing Reporting 30 2011 Tieto Corporation
Application New Terminal 31 2011 Tieto Corporation
Terminal Lifecycle Terminal lifecycle example Initiation Preparation Installation & support Out of stock Outlet Bank Supplier New terminal In stock Terminal request In configuration Broken In testing In verification Installed In-repair Uninstalled Destroyed 32 2011 Tieto Corporation
Terminal Lifecycle Management Filters area & stock statistics Devices list 33 2011 Tieto Corporation
Reports 34 2011 Tieto Corporation
2011 Tieto Corporation Acquirer discount programme
Acquirer Discount Programme Merchant service fee discount Rental fee discount 36 2011 Tieto Corporation
2011 Tieto Corporation Operator Workplace
Centric Workplace Agreements Other possibilities Accounts Communicati on history Transactions Reports 38 2011 Tieto Corporation
Operator Workplace Merchant Accounts of Acceptor the Pending Transactions of hierarchy and selected terminals applications with the of current the attributes agreement software attributes current Merchant merchant Registered Completed or communication closed events applications with a of the merchant current Merchant 39 2011 Tieto Corporation
2011 Tieto Corporation Business Case
Today s Bottle Necks Automated workflows Compliance to security standarts LOYALTY Small retailer Retailer Flexible comissions Big retailer Compliance to legislation Retailer 41 2011 Tieto Corporation Different settlement schemes
Business Growth with AMS @ Petrols Hotels $ Tier 1 Merchants Airlines Retailer networks 42 2011 Tieto Corporation
Terminal setup Manual Process Complexity Technical specialist Call-center Installator STOCK Bookkeeping Outlet Supplier 43 2011 Tieto Corporation
Processes Optimization with TLMS Terminal lifecycle example Initiation Preparation Installation & support Out of stock Outlet Bank Supplier New terminal In stock Terminal request In configuration Broken In testing In verification Installed In-repair Uninstalled Destroyed 44 2011 Tieto Corporation
2011 Tieto Corporation Summary
Summary Customer Benefits Improved customer service Maximum work efficiency Cost reduction Revenue increase Automation Optimization Flexibility Integration Security requirements Access control Risk reduction Capital reduction Future-proof investment point 46 2011 Tieto Corporation
2011 Tieto Corporation Aivars Belis Lead Business Architect, Cards Tieto, Financial Services Aivars.Belis@tieto.com