1LINK & MNET Engr. Abdul-Rahman Mahmood MS, PMP, MCP, QMR(ISO9001:2000)

Transcription

1 1LINK & MNET Engr. Abdul-Rahman Mahmood MS, PMP, MCP, QMR(ISO9001:2000) alphapeeler.sf.net/pubkeys/pkey.htm pk.linkedin.com/in/armahmood abdulmahmood-sss alphasecure mahmood_cubix Teaching skills, Project Management VC++, VB, ASP

2 Course portal

3 Class Policies

4 Class Policies

5 By Engr. Abdul Rahman Mahmood

6 Overview of 1LINK Inter Bank Switch

7 About 1LINK 1LINK is shared ATM Switch operating in Pakistan since Currently 1-LINK is the Largest Shared ATM Switch operating in Pakistan. The SWITCH is powered by TPS SWITCH Application PHOENIX 1LINK Technology is currently being looked after 1LINK (Guarantee) Ltd. 1LINK (Guarantee) Limited is a consortium of major banks that own and operate the largest representative shared financial services network of Pakistan. The synergy of financial institutions working together for a common goal has steadily increased the strength and services of 1LINK. Switch connectivity with VISA Debit

8 About 1LINK 1LINK has become widely acknowledged brand with an increasing number of member banks. TPS is powering the Switch Technology with its Innovative / Creativity. The stability and reliability of Phoenix as the Switching Technology used has resulted in a Strengthen customer driven product. Banks offering the E-Banking facility are more comfortable with 1LINK as the shared switch than any other. This is because of the greater value added privileged received by the banks on 1-LINK than at any other share ATM Switch.

9 1LINK Statistical Data Member Banks : 22 Total ATM in Pakistan : 1804 Total cities reached : 155 Average Monthly TXN : PKR 1,925,77 (as of June 2007) Average Monthly Amount : PKR 1,925,770 Transacted (as of 30/8/07)

10 1LINK Statistical Data Member Banks 1LINK 24 MNET 9 Financial transactions 1LINK on 1LINK 998,705 MNET on 1LINK 280,785 1LINK on MNET 185,451 1LINK IBFT 5,869 Visa TXN (Local) 19,485 Visa TXN (International) 5,292 Non Financial transactions 1LINK on 1LINK LINK on 1LINK 299, 452 MNET on 1LINK 74,645 1LINK on MNET 56,086 Withdrawal Volume 1LINK on 1LINK PKR 5,275,283,718 MNET on 1LINK PKR 1,300,883,900 1LINK on MNET PKR 787,283,500 1LINK IBFT PKR 296,686,985 VISA Volume (Local) PKR 34,696,009 VISA Volume (International) PKR 25,149,120 Total Transaction 1,925,770 Total Volume PKR 7,660,138,103

11 1LINK Architecture & Services

12 Architecture General Overview

13 Service Offering Over 1LINK TRANSACTIONS WITHDRAWAL PURCHASE BALANCE INQUIRY Internet Bank Fund Transfer (ATM / POS) Utility Bill Payment (ATM / POS) OTHER SERVICES VISA Debit Card Issuance Facility. (Base I) VISA Card Acquiring Facility. (SMS) VISA Settlement (BASE-I / SMS) VISA Settlement features (Chargeback, Representment etc). RECONCILIATION Reconciliation with MNET. Reconciliation with 1LINK Member Banks. Reconciliation with All Stakeholders.

14 Services On 1LINK $$$ = Cash Withdrawal??? = Balance Inquiry $$$ IBFT $$$??? VISA Debit VISA UBPS??? UBPS Utility Bill Payments (UBPS) UBPS IBFT VISA IBFT UBPS = VISA Debit = Inter-Bank Funds Transfer = Utility Bill Payments VISA $$$ VISA IBFT

15 1LINK Operations

16 1LINK Operations As a Shared ATM Switch Cutover Messages to ensure a business Cycle. Transaction Routing on the basis of relevant fields. Settlement proceeds for Transaction Count and Amount Verification. Reporting for settlement. Exports production for Settlement.

17 Settlement Cutover Message Cutover Messages are placed to ensure the business cycle date. 1LINK generates a cutover message which sent to all member banks so that they are synchronized with the SETTLEMENT DATE. 1LINK rejects a transaction initiated from member banks if the settlement date is not matched. Settlement date is checked from the field of the Settlement Date (4 Digits MMDD) in the transaction messages. The business day cycle is kept one day ahead so that the same can be reconciled the next working day. No cutover message generated on weekly holidays (Sundays) and other banking holidays.

18 Issuer / Acquirer When the customer of Bank A uses the ATM of Bank B, that makes Bank A the Issuing Bank (it s card is being used) and Bank B is the Acquiring bank (it s ATM is being used). Fee is Charged by the Acquirer Bank on per transactions basis from the Issuer Bank. Settlement Period is the mutually agreed between the 1 Link Member Banks where all banks match their transactions with 1 Link Switch report. A fixed fee for the settlement of transaction is imposed on the issuing bank. Cut-off is the time at which one settlement period ends. 1 Link Switch 0600 hrs * MNET Switch 0000 hrs ** *Settlements based on Switch Settlement dates. Tran settlement which are due on holidays are preformed the next working day (Sundays or any public holidays) **MNET settlement based upon calendar dates.

19 Issuer / Acquirer At a Glance Acquire r Switch Acquire r ATM.. Issuer Switch.. Issuer Host

20 Acquirer Institution ID Transactions of any card that is not local to a Bank is sent to 1LINK, with an ID Code specifying the Bank on which the Card has been acquired. A Bank may have issued cards with multiple IMD s/bin s, but Acquirer Institution ID Code will be unique. ACQ Inst ID code is of 11 digit with first 6 digits are unique to one of the IMD of a bank and the last 5 digits are zeros. ( ) 1LINK decides the routing on the basis of Acquirer Institution ID Code and IMD (first 6 digits of Card Number). In transactions request Card IMD is used to send the transaction to Issuer Bank In transaction response ACQ Inst ID Code is used to identify the destination.

21 Merchant Type Merchant Types are also used to bifurcate between the transactions between 1LINK Only, MNET and VISA transactions. The merchant Type field sets the transactions to fall in the settlement requirements. For Instance Merchant Type for 1LINK = 0003 Merchant Type for MNET = 0004 Merchant Type for VISA = 0007

22 1LINK Settlement Procedure

23 Settlement Procedure 1LINK performs settlement of transactions with all the member banks and connecting switches. Local Settlement Local Withdrawal and Balance Inquiry Local POS Settlement Local IBFT Settlement MNET Settlement VISA Settlement

24 Local Settlement - Local Withdrawal & Balance Inquiry Local Settlement refers to the Settlement between 1LINK Acquirer and 1LINK Issuer Bank. A Report file is generated on the settlement date basis, to mark out the transactions among 1LINK members. This report also includes the fee amount that is applicable on the respective transactions. The Fee amount currently used by 1LINK to 1LINK is constant. That is PKR 15/- per Withdrawal while no fee is imposed on Balance Inquiry. A Settlement export File is also provided. This file is used by ABN AMRO to balance the accounts of all the respective member banks. The exceptional condition of late reversals are also handled.

25 Local POS & IBFT Settlement Local IBFT Settlement is performed in the same way as the above mentioned local settlement. Local IBFT settlement includes both the credit amount and the debit amount which are always balanced. Fixed fee of each IBFT transactions is also imposed as per specification of 1LINK. Local POS Settlement involves the reporting of all purchase transactions and charging each member bank with the amount used by them. A fixed fee is also imposed. Settlement is done on the basis of both Report file (generated on Settlement Date) and the raw export (generated on the settlement date).

26 Local Settlement Bank A Customer uses ATM of Bank B Bank A Books Dt Customer AC Amt +15 Cr SC Issuer Amt +15 Bank B Books Dt SD Acquirer Amt + 4* Cr ATM Cash Cr Bank B Commission +11 * 1LINK Commission 2 ABN Settlement fee 2

27 MNET Settlement ABN AMRO maintains one shadow account of the MNET Switch. The actual settlement takes place at Muslim Commercial Bank Each calendar day is considered the settlement day i.e hrs to hrs The Cut-off time is 0000 hrs

28 MNET Settlement MNET Provides the details of the settled transaction through a raw file. This raw file is exported in the 1LINK System and are used to mark the status against each transactions reported by MNET. Exception conditions that arise are handled through the settlement procedure between 1LINK and MNET. The document for Settlement Procedure will be provided for reference. Different reports and export on the basis of settlement performed (on calendar date) are generated from 1LINK which is used by 1LINK staff to settle the transactions.

29 Other Operational Functions

30 Transaction Dispute Handling Handling of Late Reversal Status confirmation from the Acquirer SWITCH Issuer. If a dispute is raised the same is forwarded to ABN AMRO (being settlement banks of 1LINK) which clears the claim within 20 days of the initial intimation.

31 Channel and Transaction Monitoring Status monitoring of All Member banks, MNET and VISA. Transactions Monitoring. Timely Backups Transaction Certification of Upcoming member banks. Service provision to ensure 24 by 7 smooth operations of 1LINK.

32 Incorporation of New Member Banks

33 Channel and Transaction Monitoring 1LINK has developed standard Project Management Guide to facilitate Member Bank on 1LINK Project. 1LINK Project is divided into following Four Phases. Phase-I : Membership Phase-II : Document Delivery Phase-III : Certification Phase-IV: Cutover Critical Tasks have been mentioned separately to highlight there significance & impact on Project timelines. Project Management Guide is followed by Member Bank till the completion of Project.

34 Phase-I : Membership ILINK Project starts with the discussion between 1LINK and Member Banks. 1LINK will submit formal proposal on the request of Member Bank. 1LINK have standard proposal for all Member Banks. Member Bank has to provide Letter of Intent to express there willingness to join 1LINK Service. Letter of Intent must be signed by authorized person and provided on Official Letterhead 1LINK has provided Specimen Letter of Intent for the convenience of Member Bank. The main 1LINK Agreement is signed among 1LINK founder member banks. Member Bank has to sign the Participation Memorandum of the main agreement. 1LINK will officially communicate to all Member Banks, Technology Providers and Settlement Bank on the induction of new ILINK Member Bank.

35 Phase-II :Document Delivery 1LINK Data Element Definitions Manual provides detailed definition of all ISO Data Elements used by 1LINK 1LINK Message Definition & Transaction Flow document describes all possible ISO Message Types supported by 1LINK & Transaction Flow between 1LINK and co-networks. 1LINK Message Format document describes all the ISBO Message Formats used by 1LINK. 1LINK Technical Standards document provides a set of technical standards related to 1LINK operations and its interaction with Member Banks. 1LINK Certification Script documents contains the test scripts needed for full certification with 1LINK. 1LINK ATM Screens document provides the Format of Mandatory ATM Screens to be displayed on Member Bank s ATM. 1LINK IMD Listing document provides the list of IMD of existing 1LINK Member Banks.

36 Phase-II :Document Delivery 1LINK Transaction Charges document provides the details of charges/distribution on ILINK transaction 1LINK Timeout Parameters document provides standard guidelines for 1LINK Timeout setting to be configured on member bank ATM Controller and Banking Host System. 1LINK Branding Guidelines document provides standard guidelines for 1LINK branding and use of 1LINK logo. 1LINK Account Opening Guidelines document provides standard guidelines for opening the Nostro Account at ABN AMRO(1LINK Settlement Bank). 1LINK will provide standard set of forms to member bank. It is mandatory to send the forms for the smooth certification and Production Cutover at 1LINK.

37 Phase III - Certification 1LINK Network Connectivity Form is required to be submitted by member bank to make necessary network connectivity from the bank to 1LINK technology Site. 1LINK IMD Update letter is required to be submitted by Member Bank Business Contacts. The IMD (Interchange Member Descriptor) will be updated on 1LINK network. 1LINK has provided Specimen IMD Update Letter for the convenience of Member Bank. 1LINK will send a memorandum to all the existing member banks about the induction of new member bank and to update the IMD listing at their Banking Systems. 1LINK will configure the network between member bank and its technology site on the basis of the Network Connectivity Form submitted Member bank will send their Card Design to 1LINK. It is mandatory by 1LINK that the Card Design must be in compliance with the 1LINK Branding Guidelines 1LINK will confirm that the Card Design submitted by member bank is in compliance with 1LINK Branding Guidelines. Member Bank has to acknowledge their readiness by providing Certification Readiness Form. and readiness letter (Official Letter-head).

38 Phase III - Certification The filled Certification Readiness Form can be submitted to 1LINK via . 1LINK will confirm the Certification Slot after reviewing the readiness status of Member Bank and availability of resource at 1LINK. Pre-Certification Meeting among 1LINK, Member Bank and respective Technology Providers will be arranged by 1LINK before the start of certification. 1LINK will certify Member Bank as per the specifications provided by 1LINK. Standard Daily Certification Activity Report will be published by 1LINK at the day end of certification. 1LINK will send the certification report on daily basis to monitor the status of certification and to ensure that the certification is completed within the time-slot. The Final Certification Report will be published by 1LINK after the completion of certification slot.

39 Phase IV - Deployment 1LINK will invite the Operations Team of member bank to attend 1LINK operations meeting in which the Standard Operating Procedures will be communicated to member bank. Member Bank has to send the 1LINK HSM Key Exchange Form for necessary update at 1LINK. 1LINK Contact Directory Form is required to be filled by authorized bank representative to designate its business, technology and operations contacts for 1LINK. Member Bank has to provide the Contact Details for Daily estatement. Member Bank has to provide the Contact Details for Transaction Reports. Member Bank has to provide the 1LINK ATM Listing form in the specified format. Member Bank has to confirm their readiness for cutover by submitting Cutover Readiness Form.

40 Phase IV - Deployment 1LINK will arrange a Branding Meeting with the Marketing and Business Department of the New Member Bank 1LINK will confirm the Cutover Date after reviewing the readiness status of Member Bank and availability of resource at 1LINK. 1LINK will arrange a HSM key exchange activity before the schedule of production cutover. 1LINK will perform necessary activity to perform production cutover for the Member Bank. 1LINK and Member Bank have to discuss the mutually agreed launch date for the 1LINK service. 1LINK Branding Guidelines should be followed in the media launch of 1LINK Service. Project Completion Meeting will be arranged by 1LINK to officially close the project.

41 THANK YOU