1. Payment Cycle Introduction
Payment Cards
Payment Cycle
Introduction

2. Card Payment Cycle

3. Across The Payments Spectrum
Talking Points
The 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 Usage
This 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 Revolving
Charge
Debit
Corporate
Pre-paid
Instalments
Affinity Cards
Proxy / Virtual Cards (e-Card)
Private label (profiled cards)
Co-Branded Cards
Payroll Cards
Health Cards
Remittance Cards
Travel Cards
Gift Cards
Custom Electronic Purse

5. Credit Card Authorisation and Clearing System Flow

6. Credit Card Authorisation and Clearing Types
1. Local Card used in Counrty On-Line
2. Local Card used in Counrty On-Line- On-Us
3. Local Card used in Counrty Off-Line
4. Local Card used outside of Counrty - Method 1
5.Local Card used outside of Counrty - Method 2
6. Foreign Card used in Counrty – Method 1
7.Foreign Card used in Counrty – Method 2

7. BKM Switch System BKM Switch Sistemi ACQUIRER ISSUER
BANK-A
ACQUIRER
BANK-B
ISSUER
BKM Switch Sistemi
BANK-C

8. Credit Card On-Line Authorisation
Local Card used in Turkey
Credit Card On-Line Authorisation
BANK-B
ISSUER
BANK-A
ACQUIRER
BKM A.Ş.
Approve/Reject
Approve/Reject
I want to pay with my Credit Card
Card Holder
Merchant
Approve/Reject 8
POS machine of A Bank
Credit Card of B Bank

9. Authorisation if Issuing Bank can not respond to BKM query
Local Card used in Turkey
BANK-A
ACQUIRER
BKM A.Ş.
Approve/Reject
I want to pay with my credit card
Based on Predetermined Limits
Approved by Issuing Bank to be used in case of lack of communication of BKM with the acquiring bank
Approve/Reject
Merchant 9
İŞYERİ
POS machine of B Bank
Credit Card of B Bank

10. On-Us Transactions Local Card used in Turkey Approve/Reject Merchant
BANK-A
ACQUIRER
Credit Card of A Bank
Approve/Reject
I want to pay with my credit card
POS machine of A Bank
Merchant 10
Card 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 1
BANK-B
ISSUER
VISA/MC
BKM A.Ş.
Approve/Reject
Approve/Reject
Approve/Reject
International Authorisation Process is executed
I am a Turkish citizen. I want to use my card outside of Turkey
Local Card Holder
BKM can only handle the Authorisation. Cleaing and Settlement should be done with VISA and MasterCard
Approve/Reject
Foreign Merchant 11

12. Issuing Bank routes it directly to Visa or MasterCard Method 2
Local Card used outside of Turkey
Issuing Bank routes it directly to Visa or MasterCard Method 2
BANK-B
ISSUER
VISA/MC
Approve/Reject
Approve/Reject
International Authorisation Process is executed
I am a Turkish citizen. I want to use my card outside of Turkey
Local Card Holder
Approve/Reject
Foreign Merchant 12

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 1
BANK-A
ACQUIRER
VISA/MC
BKM A.Ş.
Approve/Reject
Approve/Reject
Approve/Reject
I am a foreigner. I would like to pay with my credit card in Turkey
Merchant
Approve/Reject 13
İŞYERİ
POS machine of A Bank
Credit 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 2
BANK-A
ACQUIRER
VISA/MC
Approve/Reject
Approve/Reject
I am a foreigner. I would like to pay with my credit card in Turkey.
Merchant
Approve/Reject 14
POS machine of A Bank
Credit Card of a Foreign Bank

15. CREDIT CARD TRANSACTION
Domestic Reconciliation/Settlement
BKM
BKM - YTHS
OUTGOING TAKAS DATA
B BANK
OUTGOING TAKAS DATA
A BANK
INCOMING TAKAS DATA + O/I REPORS
ACQUIRER
ISSUER
INCOMING TAKAS DATA + O/I REPORTS
Central Bank
TCMB
SALES INFORMATION
BKM FUND TRANSFER
STATEMENT
PAYMENT
BKM HESABI
PAYMENT
CREDIT CARD TRANSACTION
MERCHANT
PRODUC/SERVICE 15
CARD HOLDER 15

16. Debit Card Online POS Authorisation Flow (Domestic & International)
Visa/MasterCard
International Purchase
International Authorisation
International Authorisation
Payment Schemes:
MasterCard
Visa
Cardholder
Merchant
Acquirer
Domestic Purchase
Domestic Authorisation (BKM ISO8583 format)
International Authorisation
International Authorisation
BKM
Domestic Authorisation (BKM ISO8583 format)
International Authorisation
(BKM ISO8583 format)
Issuer
(Authorisation Institute)

17. Debit Card Online Clearing & Settlement Flow (Domestic)
Domestic Clearing
(BKM format)
Domestic Purchase
Cardholder
Merchant
Acquirer
Net Settlement
Domestic Clearing
(BKM format)
BKM
Net Settlement
Domestic Clearing
(BKM format)
Central Bank*
Issuer
Net Settlement
* All Acquirers & Issuers including BKM have Clearing Bank accounts within the Central Bank, therefore funds simply transfer between accounts.

18. Secure e-Payment Infrastructure
Banks
Banks
EST Secure e-Payment
Gateway
Customer
3D Secure
Storefront API’s
Reporting
Fraud Protection
Payment

19. Future of Payments
Further erosion into cash and other non card payments
Need to ensure balance between parties to foster growth
Risk will continue to be major concern
Regulators will continue to oversee
New technologies and channels
Mobile
Voice
Contactless
E-payment
Maximisation of the chip on the card