Contactless payments in recent years have been introduced into the life of Russians. The technology allows consumers who have no paper notes to make purchases. Let us consider in more detail the process of acquiring and all participants in this scheme.
Essence
A plastic card is a payment tool that provides access to finance. After reading the data from it, you can find out information about the owner and the balance on the account. For these purposes, a terminal is used in retail outlets. By entering the pin code, the card holder gives permission to debit funds for payment of goods. Further, several organizations are included in the payment process.
Members
The issuing bank and the acquiring bank are involved in the payments. Let us consider in more detail the functions of each of them. An acquiring bank is a bank that configures card acceptance points. For these purposes, the credit institution uses the terminals, advises the staff of the organization on the issues of accepting and canceling payments and sets up the software. But this is far from all the functions of an acquiring bank. Credit institution conducts:
- authorization and check of solvency of the card;
- processing incoming requests;
- transfers funds to the account of the outlet;
- processes documentation confirming the transaction;
- distributes lists of prohibited (stolen, expired) cards.
The issuing bank issues and maintains a payment card, opens an account for cash flow. The same institution may be an acquirer and issuer at the same time. In this case, the POS terminal and the buyer's card will be issued by one institution. But, if a client has a Tinkoff Bank card and withdraws funds through Sberbank's ATM, then the first credit institution is the issuer, and the second is the acquirer. The service point is called a trade and service company (TSP).
Processing center
To confirm the operation, the cardholder must enter a pin code. Immediately after this, the acquiring bank starts the process of checking the code, the functioning of the bank, and the account balance. To obtain this data, a request is sent to the processing center. In case of any deviations, the transaction is not allowed to the acquirer bank.
A processing center is the foundation on which electronic operations are built. This is an automated system for processing bank card transfers. Its main task is to provide shops with the opportunity to accept cashless payments. The processing center also carries out mutual settlements between the issuer and the acquirer, a retail outlet and a card holder. In Russia, PayOnline is responsible for coordinating payments with VISA and MasterCard cards.
Payment system
The advantage of cashless payments is that you can use them anywhere in the world. But the capabilities of the acquiring bank are limited. One institution cannot technically arrange settlements with all retail outlets or install ATMs everywhere. The communication function is performed by the payment system. Upon request from the processing center, she checks the solvency of the card. If there is enough balance for the operation and the financial institution is a participant in the system, it sends a request for the electronic operation.
Billing company
Another link that may be present in the chain. The billing company, like the payment system, takes on the function of transferring the transaction to the acquirer, but additionally monitors and manages risks, arranges access to detailed statistics on transactions, and provides settlements with account holders.
Bank Internet Acquirer
The principle of online payments is similar to the process of buying goods in a store. Only the way information is transmitted differs . In the first case, the terminal reads the data, and in the second, the client independently enters them into a special form on the site. The functions of an acquiring bank are performed by a credit institution serving the organization of transactions. All participants of the cashless payment system must have reliable communication channels and equipment that provides a quick process of verification and data transfer.
Commission
Acquiring is not a free service. The process of making payments is responsible for several participants in the transaction. The payment system ensures the interconnection of retail outlets and credit institutions around the world, for which it receives a commission in the range of 1-1.1% of the payment amount. The same amount is sent to the issuer for the transfer of funds. And, of course, the commission of the acquiring bank. The average market rate is 2-4%. The scope of the commission also affects the scope of the commission , the turnover of funds on the client’s account, the type of communication and the type of device.
Scheme
The most common scheme of work, when the point is directly connected to the equayer, for example, through a terminal or a special form on the website. In this case, the bank must develop software for receiving payments and monitor the status of communication channels. The store must ensure the transaction, organize server protection, track operations in order to identify potential fraudsters. If the hierarchy of the online store is complex, then programmers will be required to implement the system. And this is an additional cost.
Risks of an acquirer bank in case of bankruptcy of a TSP
In the event of the bankruptcy of the organization providing its services to people, credit institutions have a risk of returning funds to cardholders. Not all transactions are paid at the time of purchase. For example, tourists traveling on a trip book hotels and plane tickets in advance. In case of bankruptcy of the tour operator, customers will demand a refund for paid but not received services.
A striking example of such a situation is the collapse of Transaero. The financial institution accepted card payments for deferred tours and air travel, but went bankrupt. According to the rules of international systems in such situations, the problem of a refund falls on the acquirer bank. According to preliminary data, the loss of participants in transactions may amount to hundreds of millions of rubles. It does not matter how the payment was made: directly at the service point, via the Internet or billing. In all cases, the acquirer is financially responsible .
Refund
If an server-acquirer server error occurs, the money is returned to the buyer's account. The procedure provides for the client to contact the bank, which draws up and transfers the application to the acquirer. Credit institution is obliged to return the money. Another thing is that in the case of the considered bankruptcy example, the bank will be able to compensate for losses only in the process of liquidation of the organization.
Tighter requirements
In view of the situation with Transaero, bankers intend to revise the terms of service for TPNs. So, it is proposed to introduce additional guarantees in the form of a pledge or a deposit, confirming the solvency of the client. Among other options, an option is also being considered to increase the term for crediting funds to the TPN account to two weeks. This practice was already in the 2000s. But in modern conditions, such measures will lead, rather, to the loss of customers.
news
Bank Rossiya has developed its own acquiring Internet payments for the use of natural gas. Gazprom Mezhregiongaz customers can pay for natural gas through the Rossiya Bank website. To do this, go to the page of the credit institution in the online payment section and transfer funds using the personal account number.
Bank Saint Petersburg began accepting cards of the national payment system Mir in its network of ATMs, branches and terminals.
Starting April 6, 2016, Russian Standard Bank began servicing chip cards of the Diners Club International (DCI) international system. Transactions are carried out according to the international EMV standard. This provides a high level of security for operations. The right to issue exclusive Diners Club cards from the acquirer bank appeared in 2011. Since then, the credit institution is the only one in the country that is responsible for the promotion and status of the brand.