EMV COSTS and OPPORTUNITIES

Enforcement viaPolicies and Procedures

Processes and Procedures

These are boring, tedious, time consuming……

BUT THEY ARE ESSENTIAL

They must be written and updated regularly

Every member of staff must

Be trained in their use

Read them as part of their job

Keep up to date on changes

What are They

Operational procedures are documents that describethe way in which the Issuer or Acquirer operatesthroughout their operation.

They cover every aspect of the process of cards andevery interface inwards and outwards. To cardschemes, bank systems, partner systems, centralbanks etc:

Why do you need them

They are needed to ensure that the card processesalways operate in the same way, regardless of when,were or what the situation is.

They become base documents for:

Training new staff

Upgrading existing systems

Introducing new systems

What Areas are Covered

They cover every single area of the Issuer or Acquirerprocess within the bank and outside it.

Security and Access

Who can access, see and update data and what theycan do with it

Directors

Managers

Supervisors

Operators

Risk Processes

KYC (Know Your Customer)

Profiling for Risk exposure of:

Applications

Authorisations and Limits

Collections

Fraud

New Products

Authorisations

Who can authorise what

How far can a limit be exceeded

Criteria around breaking limits

Reporting processes

Account Management

Application Processing

Account Maintenance

Account Opening

Account Closure

Detail Changes

Statement Production

Settlement

Settlement processes:

Internally

Externally to

Card Schemes

Partners

Customers

Disputes

Stages involved in a dispute process:

Copy of the voucher, till roll, signature or any otheracceptable proof

Chargeback

Representment

Arbitration

Collections

Process to be followed on non-payment

30 days, 60 days, 90 days, and so on

Collections Agencies

Litigation

Dunning Letters

Write Offs

Fraud

Process to be followed:

Identification of where the faulty lies

Chargeback if appropriate

Notification of authorities

Reporting to card schemes / central banks

Write Offs

Customer Service

Who can you talk to

What can you say

How do you follow up

What are the limits of your job

Security

Key Management

System Security

Access

Passwords

Audit

What data to be recorded on each transaction:

Date

Time

Operator / workstation ID

Details of changes

Before image

After image

Compliance

Compliance with:

Central Banking Regulations

National Regulations

Anti-Money Laundering Rules OFAC

Card Scheme mandates and regulations

Any other specific compliance issue e.g. move to EMV,use of fraud checking etc:

Contract Must Haves

Contracts with Who

Schemes

Partners

Suppliers

Customers

Contract Must Haves

Contracts are as boring as anything canbe:

But

Make sure that the legal eagles haveactually written in what you want

It actually does do what you need to do

Never be afraid to question anything

If its not right nor will your business beright

Goldfish

Scheme Business Interfaces

Compliance with scheme rules

Submission of waivers

Settlement and reconciliation

Disputes and Chargebacks

Rules agreement

Product launches

Brand enhancement

Scheme Technical Interfaces

Online authorisations

Offline Clearing and Settlement

Certifications

Online

Offline

Chip card certification

New Product Launch

Licences and Approvals

Scheme Certifications

Banking Licences

EMoney Licences

FSA Approvals

Central Bank Agreements