3 Across The Payments Spectrum Talking PointsThe TSYS solutions and services support the entire payment spectrum, for any payment type. This diagram identifies specifically our areas of specialty.The presenter will talk to the direct sales opportunity as it fits in this schema. And make reference to the fact that there is more to offer. This is the chance to show that we’ll be doing solutions-based selling – meeting the customer’s needs and not throwing our entire product base in the deal if it does not offer value to the client. It does allow the customer to ask questions about the entire payments spectrum. You’ll want to have a general idea of what each circle entails in case a question is asked.Notes on UsageThis slide is not required, however it shows the “OneTSYS” view of our services so it is recommended unless it is a very specific niche customer who would have NO use for knowing our breadth of service.
4 Supported card product types Support issuance of Magnetic stripe and Chip (VSDC/M/Chip) cards:Credit RevolvingChargeDebitCorporatePre-paidInstalmentsAffinity CardsProxy / Virtual Cards (e-Card)Private label (profiled cards)Co-Branded CardsPayroll CardsHealth CardsRemittance CardsTravel CardsGift CardsCustom Electronic Purse
5 Credit Card Authorisation and Clearing System Flow
6 Credit Card Authorisation and Clearing Types 1. Local Card used in Counrty On-Line2. Local Card used in Counrty On-Line- On-Us3. Local Card used in Counrty Off-Line4. Local Card used outside of Counrty - Method 15.Local Card used outside of Counrty - Method 26. Foreign Card used in Counrty – Method 17.Foreign Card used in Counrty – Method 2
7 BKM Switch System BKM Switch Sistemi ACQUIRER ISSUER BANK-AACQUIRERBANK-BISSUERBKM Switch SistemiBANK-C
8 Credit Card On-Line Authorisation Local Card used in TurkeyCredit Card On-Line AuthorisationBANK-BISSUERBANK-AACQUIRERBKM A.Ş.Approve/RejectApprove/RejectI want to pay with my Credit CardCard HolderMerchantApprove/Reject8POS machine of A BankCredit Card of B Bank
9 Authorisation if Issuing Bank can not respond to BKM query Local Card used in TurkeyBANK-AACQUIRERBKM A.Ş.Approve/RejectI want to pay with my credit cardBased on Predetermined LimitsApproved by Issuing Bank to be used in case of lack of communication of BKM with the acquiring bankApprove/RejectMerchant9İŞYERİPOS machine of B BankCredit Card of B Bank
10 On-Us Transactions Local Card used in Turkey Approve/Reject Merchant BANK-AACQUIRERCredit Card of A BankApprove/RejectI want to pay with my credit cardPOS machine of A BankMerchant10Card Holder
11 BKM A.Ş. Local Card used outside of Turkey Issuing Bank routes it first toBKM and BKM routes it to Visa or MasterCard Method 1BANK-BISSUERVISA/MCBKM A.Ş.Approve/RejectApprove/RejectApprove/RejectInternational Authorisation Process is executedI am a Turkish citizen. I want to use my card outside of TurkeyLocal Card HolderBKM can only handle the Authorisation. Cleaing and Settlement should be done with VISA and MasterCardApprove/RejectForeign Merchant11
12 Issuing Bank routes it directly to Visa or MasterCard Method 2 Local Card used outside of TurkeyIssuing Bank routes it directly to Visa or MasterCard Method 2BANK-BISSUERVISA/MCApprove/RejectApprove/RejectInternational Authorisation Process is executedI am a Turkish citizen. I want to use my card outside of TurkeyLocal Card HolderApprove/RejectForeign Merchant12
13 BKM A.Ş. Foreign Card used in Turkey If Issuing Bank is not a Local Bank the Acquiring Bank routes it first toBKM and BKM routes it to Visa or MasterCard Method 1BANK-AACQUIRERVISA/MCBKM A.Ş.Approve/RejectApprove/RejectApprove/RejectI am a foreigner. I would like to pay with my credit card in TurkeyMerchantApprove/Reject13İŞYERİPOS machine of A BankCredit Card of a Foreign Bank
14 Foreign Card used in Turkey If Issuing Bank is not a Local Bank Acquiring Bank routes it directly to Visa or MasterCard Method 2BANK-AACQUIRERVISA/MCApprove/RejectApprove/RejectI am a foreigner. I would like to pay with my credit card in Turkey.MerchantApprove/Reject14POS machine of A BankCredit Card of a Foreign Bank
17 Debit Card Online Clearing & Settlement Flow (Domestic) Domestic Clearing(BKM format)Domestic PurchaseCardholderMerchantAcquirerNet SettlementDomestic Clearing(BKM format)BKMNet SettlementDomestic Clearing(BKM format)Central Bank*IssuerNet Settlement* All Acquirers & Issuers including BKM have Clearing Bank accounts within the Central Bank, therefore funds simply transfer between accounts.
19 Future of PaymentsFurther erosion into cash and other non card paymentsNeed to ensure balance between parties to foster growthRisk will continue to be major concernRegulators will continue to overseeNew technologies and channelsMobileVoiceContactlessE-paymentMaximisation of the chip on the card