Read 6 min. Views 203. Published 05.10.2018

Most users of plastic pay tools are unknown what processing is. For them, it is important that a debit or credit card worked steadily and was taken by terminals and ATMs, a convenient tool for Internet calculations and an assistant, thanks to which you can make the necessary amount of financial transactions.

All of the above is related to processing. It is he who is a guarantee that money from the card will be in the end point of shipment. Thanks to him, the seller receives money, and the buyer ordered goods.

Processing: the essence of the concept

Processing is a procedure for processing payments. We are talking about a complex process taking place in seconds. The essence of it is as follows: the holder of the bank payment instrument pays for them for the received service or purchased goods. With plastic, cash is written off, which are redirected to the seller or company that has granted the service.

The processing of bank cards is the processing process of electronic data. His task to organize the transfer of funds to the settlement accounts of companies.

The concept of "processing" is a translation of the Credit Card Processing phrase. It appeared along with debit cards and the ability to check the card balance in online mode. Then, in the 90s of the last century, bank legislation has not yet been determined with the laws in the field of Internet payments than some specialists who began to create their own electronic currencies. Soon the process legituted, and the company received the name of the processing centers (Transaction Processing Clearinghouse).

The activities of processing centers

In the International Financial Market, processing services provide some banks and processing companies. In essence, they are intermediaries in the chain:

• buyer;
• merchant, that is, the seller who registered a special account where money is translated from the payment gateway;
• banking system.

Transaction Processing Clearinghouse operates with big money. However, at the same time it is not their owner.

Features of bank card processing

The concept of "processing" can be viewed from 2 positions:

1. Bank. Credit companies are engaged in the release of maps within the framework of various payment systems, and also ensure their maintenance.
2. Nonabankovsky. This includes the reception of such types of regular payments as payment of utility services, telephony and Internet providers, television, television, etc., as well as service of transport, gift and other non-bank payment instruments and remittances.

The processing of plastic cards must comply with the basic rules that are adhere to both international and Russian payment systems. In international space, 2 most famous processing systems are operating: MasterCard - European and Visa - American. They are related to the banking system, but they themselves are not credit organizations. Nevertheless, the visa and mastercard make most of the international card calculations.

Organization of processing

The company providing the population of the service or selling goods in the online mode should organize processing, that is, to acquire a merchant account, concluding an agreement with the bank, for example, with Sberbank, or a processing center.

Some business representatives decide to open processing centers themselves. This gives them such advantages as:

• the ability to promptly implement new features and payment instruments;
• ensuring the security and confidentiality of these payments;
• reduction of costs for processing;
• the ability to ensure complete control of all business processes.

In any case, own or ordered processing is necessary.

What is checked during the calculation

In processing centers, the payment data of the users of the accurates, with whom they cooperate are stored. Once the equipment of trading establishments reads information from the card, it enters the center check. Data reconciliation is performed:

• details;
• availability required for payment services or product amount;
• do not have ban prohibitions.

Only after the system is convinced of the possibility of holding a payment, cash transfers from plastic to the seller.

Varieties of processing systems

In the international financial market there are 3 types of processing systems:

• "White";
• "Gray";
• "Black".

Consider each other from the species,

"White"

The "white" includes the most secure systems whose activities are absolutely transparent. For the most part, they are registered in the European Union or the United States. It is easy to connect to them, connection costs are minimal. You get high-quality services for small money and completely calm about the security of the payments made.

"Gray"

This type includes companies registered in the Asian continent in various offshores. They cannot be called law-abiding, as representatives of the "gray" processing willingly conclude contracts with any kind of business, including with sites for adults, and with companies from the High Risk category. "Gray" representatives of processing are similar to closed clubs, with whom it is not so easy to start cooperation. If it turns out, you can get mutually beneficial conditions in which the price and quality correspond to each other.

"Black"

There is no legality about any legality. Representatives of this segment are not reckless of any types of business and are ready to offer cooperation to companies leading frankly illegal activities. Most representatives of the "black" processing are banks located in China and are not the cleanest offshore. Such structures work under deep conspiracy, which makes it difficult to enter them to conclude an agreement. Cooperation with "black" is associated with risks.

Security Basics (Standards)

Security of payments - a question that concerns all participants in processing. Safety processes provide special electronic payment security technologies that meet international standards.

For issuing banks

Emitty banks use special data protection protocols.Ideally, this is 2 systems:

• 3d secure;
• Secure Socket Layer.

Secure Socket Layer is the main, 3D Secure - working on the basis of 3 domains: Equiler, Issuer and Interaction. Each domain has its own zone of responsibility and security.

For processing centers

Processing centers also use certificates and security security protocols, as they are responsible for the safety of customer data. In particular, the SSL protocol described above is applied.

Russian processing card systems

The most demanded processing cards of Russia include:

• Robokassa, created by LLC Business Element in 2003;
• Platron, launched in Moscow in October 2009;
• PayOnline acting on the basis of the international holding Net Element since January 2009.

These are 3 reliable services with which most Russian companies receiving payment online. It is worth paying their attention to them.

conclusions

Processing has become an integral part of modern business. At the Deltsov of the XXI century, the question should not arise what it means: "Expect reservations in processing". Sberbank and other financial institutions, as well as processing companies are ready to cooperate with beginner delta. It remains to make a choice to whom to contact.

The processing center is a software and hardware complex that allows you to emit and serve all operations with bank cards. A question arises in front of banks: organize your own processing center or use the outsourcing model? And both options have both positive and negative sides.

Outsourcing market

The demand for the outsourcing processing of bank cards increases, experts say. The market is practically formed: its main players are known, the services they provide are understood, the costs of their cost are known, etc. The services of outsourcing today are mostly medium and small banks. The movement of large credit institutions in the direction of outsourcing is still insignificant. According to a number of specialists, the number of independent processors will decline, and the quality of their services and the diversity of functions is to increase.

Another interesting trend is that serious foreign players came to the market. And this, in turn, creates additional prerequisites for the transition to the outsourcing processing services of large Russian banks. In the US and Europe, the most common practice is to transfer bank cards to outsourcing. Western ideology is based on the fact that banking business is one thing, and processing is something else. For example, throughout Europe, half a billion cards account for about 70 processing centers, both independent and owned issuers belonging to the largest banks like British Barclays.

According to McKinsey estimates, the profitability of its own processing in the bank can be said if the average annual number of transactions served exceeded 500 million. While this line is not achieved, the outsourcing processing is the only cost effective solution, consider representatives of Global Payments Russia. Experts of the Company argue that many Western financial organizations prefer the cost of profile business, i.e. on the development of actually banking products and services. And from the point of view of the Western Bank Strategic Investor, the situation where the Russian bank has its own processing center, does not contribute to an increase in the capitalization of this bank, but, on the contrary, adversely affects its total cost, emphasize Experts Global Payments Russia. Intangible assets available on the balance only enhance the ineffectiveness of all this business.

The advantages of outsourcing

Experts call several advantages of outsourcing schemes. First, banks can be engaged exclusively by their own business, as mentioned above. Secondly, additional business opportunities arise. It often happens that banks that endure the transaction processing function to outsourcing through one outsourcer, invent mutually beneficial business schemes. For example, banks running through one outsourcer can combine their terminal networks, while provide each other services on special more profitable commercial conditions.

The third advantage of outsourcing is that the bank can perceive and absorb a lot of new information. After all, a new complex equipment, new interfaces, protocols, standards, etc. constantly appear. In the state of an outsourcer there are specialists who constantly improve their qualifications, they are always aware of all new products. Banks collaborating with an independent processor do not have problems related to the upgrade of technological systems and bringing them into line with the changing requirements of card associations. For all this corresponds to the processor.

The existing services of round-the-clock support of banking cardholders of processing companies are always in complete disposal of the Bank's customers.

With the involvement of a third-party processor, the operational risks are significantly reduced and certain legal guarantees appear. Responsibility of the third party higher than the responsibility of the bank's own employees. In the event of an accident, error, data loss, poor-quality configuration of equipment, which caused the system hacking, or if there is evil intent, the employee's salary is unlikely to be able to compensate for the damage to the bank. When concluding a contract for outsourcing, an outsourcer is legal and financial responsibility to the bank.

Another advantage of outsourcing is that the certified processing centers of companies are checked annually international payment systems for compliance with the rules for organizing the process of issuing and servicing cards, which indicates a high level of security and the highest degree of correctness of building this technological process.

Finally, the technological solutions of interaction offered by processing companies allow banks with minimal cash costs to obtain a functionality compared to the capabilities of its own processing center.

When image is stronger than saving

There is no doubt that the transfer of functions of the processing center of a third party company seriously increases the dependence of the bank's business from an out-sorter. Therefore, the choice of the latter should be carried out weigly, competently, objectively and preferably on a tender basis. Moreover, for such a tender should hire professionals from some consulting company. They will be able to make a list, issue a bank's requirements for outsourcing and evaluate how outsources comply with the requirements. It is necessary to properly arrange an agreement on outsourcing, which is clear and clearly spelled out the responsibility of an out-sorter for the quality of the services provided by him.

Why, despite the global practice and sufficiently indicative advantages of using outsurance-synof schemes on the Russian market, the processing of In-house is dominated, i.e. Banks prefer to create their own processing centers?

Experts have no longer once conducted calculations of the economic justification of the transition to their own processing. Of course, with each specific case, the conditions are individual. And yet there are some average digital indicators for such projects.

So, a really foreseeable payback period - three years. The number of emitated maps should be 100-300 thousand. Number of operations -100-120 thousand per month. The bank terminal network must have 100-300 ATMs.

Experts note that important (and maybe the main) factor in the transition to their own processing are the ambitions of the credit institution. The bank, deciding on a similar step, emphasizes the scale of its own projects, confidence in their realizability. The credit institution shows both partners and competitors their high technological capabilities.

Pros of own processing

Specialists call several factors that contribute to the fact that banks create their own processing centers. Some credit organizations do not want to reduce the degree of control over the IT accompaniment of their business and for this reason create their own processing center. Those. The bank is economically more profitable to leave the process on outsourcing, but on the basis of the need to ensure business control, the credit institution creates its own processing.

Companies that provide outsourcing services are usually served by several customers at once. It is possible to assume the situation when simultaneously at once to all customers an out-sorter will be upgraded by their systems or the introduction of new projects. It is clear that either someone will be denied the implementation of their requests, or will delay the execution date of the order. It is unlikely that an outsourcer company has such resources that are able to serve the client at any time to the maximum deadlines and at the same time 90% of the time cannot be used itself. It is extremely expensive.

Services provided by outsourcing cannot be called exclusive. There is a theoretical probability that if the company implements a new project, the possibility of using some details and project nuances becomes available to other banks working through this outsourcer. Some banks are afraid to lose their client base, fear that the processor will reveal the third party data on their clients.

Credit organizations are sometimes dissatisfied with the quality and functionality of processing services. Sometimes due to the slowness of the staff of the processing company, incompetence, excessive bureaucratization, the Bank loses the quality and efficiency of managing customer service parameters, loses control over the quality of the functioning of the devices: setting the limits, blocking cards, etc. And this also lies the reason for the bank failure from the service of third-party processing.

Payment processing. Required historical reference:
Prior to the beginning of the era of the Internet and the appearance of the possibility of checking the balance of the credit card in the "Online" mode, there were three types of organizations involved in the card payments:

Processing of plastic cards

Card companies-regulators that produced cards for banks and equipment for their reading. These were Visa, MasterCard, American Express and some others

Banks that under the control of regulators issued credit cards to their customers and carried out operations of write-off / accrualing among themselves using databases and financial guarantees of regulators

Processing center

Types of processing systems

In the 90s, with the development of the global network, there was an opportunity to check the balance of payment cards in the "Online" mode and banks began to produce the first debit cards (until the cards were only "credit"). At the same time, groups of specialists appeared, which, using the lack of legislation in the field of Internet payments, began to create their own electronic currencies. These companies were essentially with their Internet banks, but in fact they acted outside of banking legislation. And there was a need to give the name of such activities, the term "processing" appeared as a reduction from Credit Card Processing. Server rooms with billing servers began to call "Processing Clearinghouse", and companies that provided processing services became called "Payment Processor).

Our processing services

Selection of the processing center providing the best conditions

Selection of offshore processing company for a new business model

Connecting negotiations

Consultations on any issues of receipt of the processing service

We connect any classes of merchants and help in implementing the most complex billing schemes, such as outgoing payments to individuals, massive microplates, or the creation of electron currency exchange items. Our company is interested in the implementation of one-time orders and in market research and maintaining your business for a long time in the field of legal, tax, marketing and IT consulting. We are always glad to you. Contact.

All text and graphic materials presented on this Internet page
they are the property of LLC "Smart Group" - a company registered in the Russian Federation.
The use of these materials without the written consent of the copyright holder is prohibited and will be prosecuted in accordance
with legislation by contacting hosting centers serving Internet sites of violators, as well as by circulation
In court courts at the place of registration of the company of the violator or the livelihood of the physical person of the violator.

PAYMENT PROCESSING

Tariffs for processing:

Ecommerce Payments.
Worldwide Payment System.

Transaction processing

Processing - own or third-sided: pros and cons

The processing center (PC) is the organizational and technological division of the financial institution or a specialized company that maintains the life cycle of bank products based on plastic cards. The list of functions performed by the PC, includes service life cycle service, connecting and monitoring the network of terminal devices, capture and technical processing (processing) of transactions, data preparation for the implementation of mutual settlements (clearing) with clients and counterparties. A separate function, which in some cases also performs PC, is personalization of maps.

When implementing projects using plastic cards, there are three main technological schemes - using your own processing (in house), third-party or in accordance with the terminology of international payment systems - third-frame processing Third Party Processor or Member sERVICE PROVIDER), as well as a combined scheme.

In the first case, the fulfillment of all technological functions related to the maintenance of plastic cards is made by the financial institution personnel using a software and hardware complex belonging to him.

In the second case, the main technological functions are transmitted to the execution (outsourcing) of a third-party organization certified by payment systems for the provision of such services - the third-sided processor Third Party Processor or member Service Provider).

In the third case, part of the functions (for example, support for the issue and product range) is performed directly on the bank's technological capacities, and the other part (support for the terminal network, service connection to payment systems, data preparation for clearing) - third-party processor.

The choice of processing scheme for the plastic project of the Bank is primarily determined by economic reasons, but the assessment of the potential risks of the alternatives under consideration are also plays an important role in decision-making - both business and technical ones. Therefore, by the time of deciding on the technological part of the project, the bank must have a clear concept of business development with plastic cards, decorated in the form of a business plan with a perspective for several coming years, in which at least the following parameters are indicated:

Reliable rod and positioning of the bank in the market (which trends are available on the market, which products the bank is going to offer which market share plans to occupy and what it intends to earn);

Emission parameters (which cards of which payment system are selected for the project, the ratio of transactions in its own and in someone else's network, the map use coefficients);

Economics of products (cost and revenue);

Characteristics of the terminal network (availability of its own terminal network and terminal network of other banks operating in the region; cost of access to someone else's terminal network on the tariffs of the payment systems present in the region);

Financial capabilities and ambitions of the bank (how much we are ready to invest in this project infrastructure).

To understand the share of the technological component, consider briefly a typical economy of the project for the production and maintenance of products with plastic cards. The bank works with clients and receives a profit from their service - the income and consuming components can be approximately submitted in the form of the following table (Table 1).

From table. 1 shows that the essential share of the costs of the financial institution is transaction fees in favor of the processor. At the same time, with an increase in the amount of emission and the number of devices belonging to the Bank, the weight of the technological component in the expenditure part of the project increases.

Consider from which the economy of the processor is developed (Table 2).

From table. 2 It follows that a significant share in the costs of the processor constitute a one-time investment in the construction and certification of the data center and the personality center, as well as regular costs for maintaining their performance. Therefore, it is obvious that for small emission projects (estimated to 50,000 cards), the organization of its own full-featured processing usually does not pay off.

An essential role when choosing a transaction processing solution plays an assessment of technological and business risks. In particular, when choosing a third-party processor, attention should be paid to such factors as the size of the business and the organizational structure of the company, the proposed product range used by technological solutions, an existing CPU client base in your region (which financial institutions and with what product nearby). Special attention should be paid to the contractual base - the presence of prescribed interaction procedures, terms of service level agreements (SLA-Service Level Agreement). An unpleasant surprise for the bank may be in the contract with the EXIT FEE processor - the obligations to compensate for certain costs, or to pay a fine in the amount of the alleged turnover for the term of the contract in the event of its early termination.

The main arguments in favor of this or that solution are shown in Table. 3.

Another restriction when choosing a processor for banks entering the payment systems under the sponsorship of another financial institution is the fact that usually the conditions of the sponsorship package provide for implementation on a processor affiliated with this financial institution.

Currently, in the market of processing services in Russia, there is a sufficient number of players as domestic (CJSC "Company of United Credit Cards", a number of banks offering processing services in sponsorship) and foreign (First Data Inc., Global Payments Inc. ) With competing tariffs. Therefore, it appears that the choice of a technological partner for the implementation of the card project in the presence of a clear understanding of its intended economy should not be difficult.

Technology of the financial institution with a processor

As you know, in the organizational and technological plane, processing systems can be divided into front-office, back office, personalization center and infrastructure subsystems that are not involved directly in the process of authorization of transactions and personalization of plastic (Fig. 1).

Consider the elements of technological processes related to the maintenance of transactional and life cycles of the card, indicating the technological subsystems of the processing center and the participating divisions of the processor and the financial institution (Table 4).

Obviously, part of the processes listed in Table. 4, can perform a processor, part - bank.

There are two limiting cases - offline (Fig. 2, 3) and online interaction of the bank with a processor (Fig. 4). With an online connection, the authorization of transactions takes real time against the current values \u200b\u200bof fund balances in the client's accounts in ABS Bank. Part of the functions of the processor personnel are delegated to the bank's divisions using remote access to front and back-office processor subsystems. However, the main exchange of information that has financial consequences (instructions for maps, clearing files, etc.) is made by files using notarized document management. The advantages of this method of working with the processor is the efficiency of access to data, bringing the possibility of a bank to the possibilities of working with its own processing, without the need to build the latter and, as a result, lower risks. The disadvantages are higher costs for communications and the need to have qualified personnel duplicating processor personnel.

With offline interaction with the Financial Institute, the processor authorizes transactions on limits provided with certain periodicity. The bank also processes the transaction reports provided by the processor and account for operations in its back office. All data exchange with the bank is also carried out by notarized document management. The advantage of this method is extremely low initial costs for the start of the card program (in fact - the purchase of a card back office compatible on the data exchange formats with the processor). The disadvantages are higher risks and lack of flexibility - the grocery series is limited by the possibilities of interaction with the service provider, and the service provided by the capabilities of its client service.

It should be noted that in real life now a purely offline scheme is practically not used. Use of remote access to the processor resources and the organization of multiple file exchange sessions with the processor per day approximate it in the possibilities to online.

Building a Bank Processing Center

The construction of the Bank's processing center is a multistage project, during the implementation of which it is necessary to solve a set of tasks for the design and preparation of premises, engineering infrastructure, the choice of software and hardware platform, the development of organizational procedures.

Special attention at the design stage should be given to issues of physical, logical and information security, since making changes to the already implemented elements of structures and infrastructure based on the results of audits (premises, elements of the hardware and hardware complex) can be associated with significant financial and temporal costs. Attraction to the process of designing external consultants and suppliers familiar with the audit procedures and the requirements of payment systems will allow to avoid possible errors and additional costs for their elimination.

In the process of building and commissioning a processing center, as in creating any automated control system, several stages can be distinguished (Table 5).

A separate question when building a PC is the selection of a software and hardware platform, since it is precisely the user characteristics of the entire system. In the world there is a sufficient number of solutions providers for processing transactions using plastic cards. An interested specialist will easily draw up a list based on publications in the profile press ("EUROPEAN CARD Review", "Place") either by catalogs of sectoral exhibitions like Cartes (.

In the classical definition, the processing center is a legal entity that provides technological and informational support between participants in the state banking system. In other words, this is a payment processing structure.

Russian credit organizations tend to create a special division, manufacturing payments and customer remittances, i.e. have their own processing centers.

• Banking processing includes: the release and maintenance of plastic cards of local and international payment systems;
• To non-banking: reception of regular payments (cellular communication, Internet, digital television, utilities, etc.), remittances and maintenance of non-bank cards (social, transport, gift, etc.).

Processing under payment systems

In order for the bank to pay for services at any point in the country and the world, the activities of the internal processing centers must comply with the rules of Russian and international payment systems. The most famous global processing systems - Visa and MasterCard. Without banks, they make an overwhelming number of calculations worldwide. Thus, a single international financial space is created.

Popular processing centers

Processing is engaged not only by banks, but also specialized companies, for example, PayOnline, Platron, Robokassa and others. "Net processing" is more profitable, as it implies for such companies simultaneous cooperation at once with several banks and the possibility of engaging in a population of more related subjects and, accordingly, large sums of money. Processing centers of this type are not owners of monetary amounts. They just operate them.

What is processing?

What is processing? You can simply answer: the data processing process when making payment transactions. For providers of payment servers, payment service providers processing is the main activity. She is engaged in processing centers, in other words, providers.

The most widely used processing centers in this direction as electronic payments.

1. Electronic payments systems are organized by transferring money to the company's current account when shopping in online stores.
2. Receiving payments for goods and services Online on bank cards is called bank card processing. The procedure is complicated, although the processing process through banking takes several minutes.

Processing Tariffs

In payment systems, the tariffs for connecting the processing of electronic currencies and bank cards are different, and the payment is different depending on the purposes. For example, "simple connection" will be paid in different ways for virtual services and goods worldwide.

There are several tariffs for connecting:

1. connecting a site to a bank or partner foreign processing (simple);
2. "Complex" connection with a large number of payment options and tax planning;
3. optional (with a set of functions selected as desired).

Processing of plastic cards

Processing companies, in contrast to banks, are not subject to certain rules and have no obligations to depositors. Such processing companies most often cooperate immediately with several banks, using the benefit of the work of these institutions, which affects the decrease in the Commission for the merchant. The usual bank does not have the ability to work with electronic cash in contrast to the processing companies.

Unlike Internet acquiring in the offshore banking institutions, the processing of plastic cards is less transparent for regulators and controllers. This allows you to serve "special" customers from the Super High Risk group.

Types of processing systems

Types of processing systems are: white, gray, black.

1. "White" processings work with low-risk companies, regularly by paying all taxes. Such processings are absolutely law-abiding, usually, these are residents of the United States and the EU. Connect to such a payment system is quite easy and accessible to each, while the cost of connecting is minimal.
2. The second type of Gray Providers. These include companies registered in different offshores, countries of the Asian region. They are ready to conclude contracts for servicing any business (pharmaceuticals, sites for adults and other companies High Risk classes). But they are not so easy to agree with them, such companies do not communicate with people "from the street." In the case of an agreement, it is possible to obtain the optimal value for money.
3. "Black processings" are engaged in processing payments of any business, even frankly illegal. These are usually Chinese banks and odious offshores. Such structures are deeply compiled due to large risks. Working with them is possible, but it is very difficult to "get out" to representatives of the processing.

List of banks connected to OJSC Banking Processing Center

In order to introduce non-cash settlements in the Republic of Belarus, a number of large banks and enterprises was created by OJSC Banking Processing Center. The center provides a range of services in the field of information technology non-cash payments using payment cards. All services offered are fully certified and comply with the rules of payment systems. Clients of the processing center are all major enterprises of the republic.

List of banks connected to Banking Processing Center OJSC:

• OJSC BELINVESTBANK
• CJSC Zepter Bank
• OJSC "BPS-Sberbank"
• CJSC "BTA Bank"
• OJSC "Belagroprombank"
• OJSC Paritesbank
• CJSC "Delta Bank"
• CJSC "Trastbank"
• OJSC "Belarusian People's Bank"
• OJSC "FransBank"
• CJSC INTERPEYBANK.

Building your own (in-house) processing center

In our country there are many banking institutions and each more or less serious player in this market wants to ensure the construction of its own (in-house) of the processing center. It is not always advisable economically, but banks continue to create PC with enviable constancy.

The reasons for the tanks create their own PC:

1. the volume of business is such that sometimes cheaper to have their own PC than to use third-party;
2. its PC allows you to quickly implement new technological products and services;
3. satisfaction of the ambitions of the heads of the banking organization;

possible risks when transferring data. Information about clients and revolutions of the organization is always known for third-party PC.

Tip from Compare.ru: If you want to pay the card, check whether it is pushing the payment terminal system. Usually on the signs of stores it is indicated which cards are accepted for payment.