Processing of bank card transactions. How processing centers of international payment systems work
Using a bank card on the Internet, you can order food at home, buy clothes and pay public Utilities. The calculation is instantaneous, which is convenient for both the buyer and the seller. The processing of information when making payments with a bank card is called processing.
However, a connection must be established between the bank and online merchants that will allow electronic payments. This requires the so-called processing platform (payment service). To connect such a service, you need to contact the providers of processing services.
Processing services are providing access to the payment service for processing payments made with bank cards. In other words, with this service, an online business accepts card payments on its website. The payment service provider provides communication with acquiring banks, billing systems, etc. and is responsible for the proper quality of communication.
Several important points depend on the choice of the processing center (data provider of services):
- how convenient it is for the user to pay for purchases on the site;
- whether each transaction is as safe as possible for both the seller and the buyer;
- how profitable the provider's tariffs are for this online business.
The last point is of particular interest to everyone who sells goods and services via the Internet. Some providers charge a connection fee and set a fixed monthly rate, while others charge for this service a certain percentage of the amount of each payment received.
Today, no one doubts the fact that processing services are an essential part of doing business online. Net Pay is independent with a wide network of acquiring banks and other partners. In order to connect on the site, you need to send an application to our specialists. Net Pay offers convenient rates that are calculated individually for each client, depending on the volume of sales and the field of activity.
Processing- this is the stage of formation of functionally active RNA molecules from the initial transcripts. Processing is considered as post-transcriptional RNA modifications characteristic of eukaryotes. (In prokaryotes, the processes of transcription and translation of mRNA occur almost simultaneously. This type of RNA does not undergo processing in them.)
As a result of processing, primary RNA transcripts are converted into mature RNAs. Since there are several various types RNA, then each of them has its own modifications.
Processing of informational (matrix) RNA
In the DNA regions encoding the structure of the protein, a precursor of informational (matrix) RNA (pre-mRNA) is formed. The pre-mRNA copies the entire DNA nucleotide sequence from the promoter to the transcripton terminator. That is, it includes terminal untranslated regions (5" and 3"), introns and exons.
Pre-mRNA processing involves capping, polyadenylation, splicing, as well as some other processes (methylation, editing).
capping- this is the addition of 7-methyl-GTP (7-methylguanosine triphosphate) to the 5 "end of the RNA, as well as the methylation of the ribose of the first two nucleotides.
As a result, the so-called "cap" (cap) is formed. The function of the cap is related to the initiation of translation. Thanks to him, the initial site of mRNA is attached to the ribosome. The cap also protects the transcript from the destructive action of ribonucleases and perform a number of functions in splicing.
As a result polyadenylation a polyadenylic region (poly-A) about 100-200 nucleotides long (containing adenine) is attached to the 3 "end of the RNA. These reactions are provided by the poly-A polymerase enzyme. The signal for polyadenylation is the AAUAAACA sequence at the 3" end. At the -CA site, the mRNA molecule is cut.
Poly-A protects the RNA molecule from enzymatic degradation.
Capping and polyadenylation occur at the stage of transcription. The cap is formed immediately after the 5'-end of the synthesized RNA is released from RNA polymerase, and poly-A is formed immediately after transcription termination.
Splicing is the excision of introns and the connection of exons. Exons can connect in different ways. Thus, different mRNAs can be formed from one transcript. Splicing of messenger RNA involves small nuclear RNAs that have regions complementary to the ends of introns and bind to them. In addition to snRNA, various proteins are involved in splicing. All together (proteins and snRNA) form a nucleoprotein complex - spliceosome.
After processing, mRNA becomes shorter than its predecessor, sometimes by tens of times.
Processing of other types of RNA
During the processing of ribosomal and transfer RNA molecules, capping and polyadenylation do not occur. Modifications of these types of RNA occur not only in eukaryotes, but also in prokaryotes.
Three types of eukaryotic ribosomal RNA are formed as a result of cleavage of one transcript (45S-RNA).
Processing of a number of transfer RNAs may also involve cleavage of one transcript, while other tRNAs are obtained without cleavage. A feature of tRNA processing is that the RNA molecule goes through a long chain of nucleotide modifications: methylation, deamination, etc.
The processing center is a software and hardware complex that allows you to issue and service all transactions with bank cards. The question arises for banks: to organize their own processing center or to use the outsourcing model? Both options have both positive and negative sides.
Outsourcing market
Demand for outsourcing bank card processing is increasing, experts say. The market is practically formed: its main players are known, the services they provide are clear, their cost is known, etc. Today, outsourcing services are mainly used by medium and small banks. The movement of large credit institutions in the direction of outsourcing is still insignificant. According to some experts, the number of independent processors will decrease, while the quality of their services and the variety of functions will increase.
Another interesting trend is that serious foreign players have entered the market. And this, in turn, creates additional prerequisites for the transition to outsourcing of processing services of large Russian banks. In the US and Europe, the most common practice is to outsource bank card processing. Western ideology is based on the fact that the banking business is one thing, and processing is something else. For example, in all of Europe, there are about 70 processing centers for half a billion cards, both independent and owned by the largest issuing banks like the British Barclays.
According to McKinsey estimates, the bank's own processing can be said to be profitable if the average annual number of processed transactions exceeds 500 million. Until this milestone is reached, processing outsourcing is the only cost-effective solution, representatives of Global Payments Russia believe. The company's experts say that many Western financial institutions give preference to core business costs, i.ะต. for the development of banking products and services. And from the point of view of a Western banking strategic investor, the situation when Russian bank has its own processing center, does not contribute to an increase in the capitalization of this bank, but, on the contrary, negatively affects its overall value, Global Payments Russia experts emphasize. Available on balance intangible assets only exacerbate the inefficiency of the whole business.
Benefits of outsourcing
Experts name several advantages of outsourcing schemes. First, banks can deal exclusively with their own business, as mentioned above. Secondly, there are additional features for business. It often happens that banks outsourcing the function of transaction processing through one outsourcer invent mutually beneficial business schemes. For example, banks working through one outsourcer can combine their terminal networks, while providing services to each other on special, more favorable commercial terms.
The third advantage of outsourcing is that the bank can perceive and assimilate a lot of new information. After all, new complex equipment, new interfaces, protocols, standards, etc. are constantly appearing. The staff of the outsourcer has specialists who constantly improve their skills, they are always aware of all the new products. Banks cooperating with an independent processor have no problems upgrading technological systems and bringing them into line with the changing requirements of card associations. The processor is responsible for all this.
The existing round-the-clock support services for bank card holders of processing companies are always at the complete disposal of the bank's customers.
With the involvement of a third-party processor, operational risks are significantly reduced and certain legal guarantees appear. The responsibility of a third party is higher than the responsibility of the bank's own employees. In the event of an accident, error, data loss, poor-quality hardware configuration resulting in a system hack, or in the presence of malicious intent wage employee is unlikely to be able to compensate for the damage caused to the bank. When concluding an outsourcing contract, the outsourcer bears legal and financial responsibility to the bank.
Another advantage of outsourcing is that certified processing centers of companies are annually checked by 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 this technological process.
Finally, technological solutions for interaction offered by processing companies allow banks to obtain functionality comparable to the capabilities of their own processing center at minimal cost.
When image is stronger than economy
There is no doubt that the transfer of the functions of the processing center to a third-party company seriously increases the dependence of the bank's business on the outsourcer. Therefore, the choice of the latter should be carried out carefully, competently, objectively and preferably on a tender basis. Moreover, to conduct such a tender, professionals from some consulting company should be hired. They will be able to draw up a list, draw up the bank's requirements for outsourcers and assess how outsourcers meet the requirements. It is necessary to draw up an outsourcing contract correctly, in which the responsibility of the outsourcer for the quality of the services provided by him would be clearly and clearly stated.
Why, despite the world practice and rather significant advantages of using outsourcing schemes for Russian market, in-house processing dominates, i.e. banks prefer to create their own processing centers?
Experts have repeatedly calculated the economic feasibility of switching to their own processing. Of course, in each case, the conditions are individual. And yet there are some average figures for such projects.
So, realistically foreseeable payback period is three years. The number of issued cards should be 100-300 thousand. The number of transactions is 100-120 thousand per month. The bank's terminal network should include 100-300 ATMs.
Experts note that an important (and perhaps the main) factor in the transition to its own processing is the ambitions of a credit institution. The Bank, deciding to take such a step, emphasizes the scale of its own projects, confidence in their feasibility. The credit organization shows both partners and competitors its high technological capabilities.
Advantages of own processing
Experts name several factors contributing to the fact that banks create their own processing centers. Some credit institutions do not want to reduce the degree of control over the IT support of their business and for this reason create their own processing center. Those. it is economically more profitable for the bank to leave the process on outsourcing, but based on the need to ensure business control credit organization creates its own processing.
Companies that provide outsourcing services, as a rule, serve several clients at once. It can be assumed that at the same time all the clients of the outsourcer will need to upgrade their systems or implement new projects. It is clear that either someone will be denied the implementation of their requests, or the deadline for the execution of the order will be delayed. It is unlikely that an outsourcing company has such resources that are able to serve the client at the shortest possible time at any time and at the same time 90% of the time are not used for their intended purpose. This is extremely expensive.
Services provided by outsourcing cannot be called exclusive. There is a theoretical possibility that if a company implements some new project, then the possibility of using some details and nuances of the project becomes available to other banks working through this outsourcer. Some banks are afraid of losing their customer base, they are afraid that the processor will disclose data about their customers to a third party.
Credit institutions are sometimes dissatisfied with the quality and functionality of processing services. Sometimes, due to the slowness of the personnel 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 devices: setting limits, blocking cards, etc. And this is also the reason for the bank's refusal to use third-party processing services.
The use of plastic cards is associated with convenience and reliability when paying for goods and services. Ease of operation is important to the average consumer. They do not even think about what processes are performed at the time of payment and how many electronic systems are involved in the payment process. This complex complex, linking into one whole set of operations, is called processing.
Processing system - what is it?
Processing is the process of processing data provided for in the course of payment transactions. Processing centers that provide services for the supply of software and maintenance of payment systems are one of the links in the acquiring system. Its purpose is to carry out payment transactions using payment cards.
Participants of acquiring operations are:
- the acquiring company directly carrying out the settlement;
- the issuing bank that issued the plastic card;
- payment system- an intermediary between previous participants.
The processing system is obliged to ensure constant uninterrupted communication between the participants in the settlements.
Functions of the acquiring system
When paying by card, the following details are checked:
- the validity of the card;
- the amount of funds on the chip;
- the status of the issuing bank.
The processing system also carries out transfer transactions Money through the payment gateway and ensures the safety and secrecy of the operation, protection from fraudsters.
These processes are controlled in hardware-software complexes that are connected to the acquiring system of communication channels. A very important factor of a good center is its rapid modernization, speed of processing and data transfer.
Features of the organization of processing
A system for processing payments using plastic cards, based on process automation, is most often used in the field of e-commerce. With the help of the well-functioning work of all systems that quickly track settlements between the cardholder, the acquiring bank, the payment gateway, the store and the owner of the payment chip, the processing center becomes the link between the participants in the transaction.
The operation scheme implements the following tasks:
- data processing payment card payer;
- transfer of payment request data for a transaction to the issuing company;
- processing of the protocol of payment details;
- formation and support of the database;
- daily report to the acquiring bank on mutual settlements;
- consolidation of stop-lists and distribution of information to counterparties.
V Additional services such centers include the production of plastic cards, their personalization and protection. The processing system of a bank may include payment centers.
Functionality of the processing center
Payment systems process a huge amount of information and requests for financial transactions every minute. Therefore, processing centers have high-performance computing facilities. Also, companies are supplied with security software, since the security of payment systems is a guarantor of reliability in the eyes of the consumer. Processing systems include a staff of highly qualified programmers who are able to maintain equipment and repel hacker attacks in a timely manner.
Types and types of processing systems
In Russia for electronic payments financial companies create their own payment centers. They are supplied software product, which controls the issued cards.
Integration into international systems obliges our financial institutions use the services of foreign processing centers and implement them software. Also domestic banks depend on the world's monsters both legally and financially. That is, they are fully obliged to comply with the requirements for cooperation for the sake of the convenience of the consumer.
The largest processing systems in Russia use payment systems developed by United Cards Company. The most famous foreign centers are Visa, Master Card, Skrill and others. All processing complexes perform Internet acquiring using a single network.
The problem of Russian financial systems is that each bank produces its own payment system, not providing the opportunity to use it to other market players.
Safety
Unfortunately, today no processing system can provide complete protection of clients from fraudsters. One of the methods of combating hackers was the emergence of a set of security measures according to the PCI DSS standard.
According to its provisions, at all stages of remote banking operations with a card account, each participant in the payment scheme is obliged to:
- Each issuing bank provides a plastic card with counterfeit protection. Such protection can be magnetic chips or strips, CVV numbers, an additional identification code PAN, PIN for payment card holders. Also, the holder of the payment instrument undergoes 3-D Secure authentication. Each owner is assigned a login and a one-time password via SMS.
- Each processing center is certified. Without proper attestation, he is not allowed to participate in payment transactions until he passes recertification. All employees are screened by the National Security Service.
All information is transmitted using cryptographic algorithms and security protocols according to PCI DSS standards. Each participant financial transaction constantly audited for security measures. The PCI DSS standard also imposes requirements on electronic payment systems that undergo mandatory certification.
Payment system license (processing)
When starting processing, a license is required, which can be obtained from a provider providing services for processing centers. Such companies provide a safe and efficient service, using knowledge and many years of experience in the processing center industry.
Payment system requirements
The processing system must meet the basic requirements for settlements according to plastic cards. When using Internet cash registers, the buyer enters a secure form of payment. At this stage, the task of the processing center is to verify the status of the payment card and the parameters of the online store.
Connection of payment systems
Compared to bank transfers, electronic financial systems have a number of advantages. The main factor is ease of access. You just need to register on the site, get a virtual account or company card, go to Personal Area, get individual login data - and you can make payments.
The security of electronic transactions is carried out according to the international encryption protocol SSL using a 128-bit code.
The most famous are WebMoney, PayPal, Western Express, Yandex.Money and others.
Overview of some international payment systems
International processing systems are represented by the following well-known companies:
- PayPal is the most common and secure payment system. Engaged in administration, issuance of certificates of deposit, issuance financial instruments, execution of payment transactions, maintaining banking operations licensed by offshore banks.
- WebMoney is the most common payment system in the CIS countries. Supports Visa and MasterCard. Issues loans to clients. It is possible to make transfers without additional registration in the system. Payments can be made through terminals. The system commission for a transaction is 0.8% of the payment amount.
- Western Express is a check cashing service. Russian-language interface. Withdrawal of funds to a bank card PayCard, WebMoney or Western Union.
- LiqPAY - supports Visa and MasterCard. You can transfer money to your mobile phone. Supports currencies such as euro, dollar, Russian ruble and Ukrainian hryvnia.
- Payza is an international electronic payment system. Simple registration. The possibility of additional earnings in the form of a partner reward.
- Yandex.Money is the most famous Russian electronic service Internet payments. To register, you must register a postal address in the Yandex system. Simple linking of a bank card. Ability to make payments through the terminal.
Everyone can choose for himself the system that meets his ideas about the quality of services, speed of operations and security.
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