PAYMENT SYSTEM – BASIC SCHEMES

July 2020
Dr. Amirul Amin
Card payment scheme – interchange fee

Bank
receives Cardholder
Merchant RM98.40 Card issuer pays RM100
´s
Bank pays (Bank)
settlement
to Bank
merchant Issuer
RM97 pays
RM99

Payment system
(MC, Visa, Amex, …, 3-rd.
Parties)

Merchant Cardholder

Customer card
pays by
 Transmission transactions Clearing transactions
Payment system v 1 Bank always holds acq. licenses and
certified
payment SW solution (for EFT, ATM, …)

Bank –
issuer/ Clearing Files –
acquier incoming/outgoing

Not-on-us txn Card schemes

auth.
Auth. process. centre
In-house

TMS* Service providing - ….

In-house
- EFT SW support
- 1-st lev. Sup.
- 2-nd lev. Sup. (on-
field interv.)
- monitoring
- de-/install.
- staff training
Merchant 1 EFTs
EFTs Merchant X
Merchant 2 EFTs

* TMS – terminal management system

Payment system v 2
Into certification processes are involved: Card schemes +
Acquier + Auth.processor + EFT (ATM) SW developer

Clearing Files –
incoming/outgoing
Not-on-us txn auth.
Card schemes
Bank –
issuer/acquier May be
SW
developer
May be - ….
SW
Auth. process. developer
centre
In-house
TMS Service provider
- EFT SW support
- 1-st lev. Sup.
- 2-nd lev. Sup. (on-
field interv.)
- monitoring
Txn. - de-/install.
routing - staff training
Merchant 1
EFTs
Merchant 2
EFTs
Mer
cha
nt X
EFTs
Payment system v 3

Clearing Files –
incoming/outgoing

Card schemes
Bank –
issuer/acquier May be
SW
developer

- staff training

Auth. process. Center

On-us txn
auth. & TMS SP
- EFT SW support
- 1-st lev. Sup.
- 2-nd lev. Sup. (on-
field interv.)
- monitoring
- de-/install.
Merch
ant 1
EFTs
Merc
hant
2
EFTs
M
e
r
c
h
a
n
t

X
E
F
T
s
Payment system v 4

Clearing Files –
incoming/outgoing

Card schemes
Bank – May be SW
issuer/acquier developer
May be
On-us txn auth.
SW
developer Merchant 1
EFTs
Merchant 2
Auth. process. TMS Service provider
EFTs
Center - EFT SW support
Merchant X
- 1-st lev. Sup.
- 2-nd lev. Sup. (on- EFTs
field interv.)
- monitoring
- de-/install.
Txn. - staff training
routing
Payment system v 4
EFT SW developer (3-rd. party)

Clearing Files –
incoming/outgoing

Bank – Card schemes

issuer/acquier

On-us txn auth.

Merchant 1
EFTs
Merchant 2
Auth. process. TMS Service provider
EFTs
Center - EFT SW support
Merchant X
- 1-st lev. Sup.
- 2-nd lev. Sup. (on- EFTs
field interv.)
- monitoring
- de-/install.
Txn.
- staff training
routing
Payment system

Thank for your attention!