E-Debit International Inc. Introduction to Transaction Processing. Basic Overview of our Payment & Processing Systems 08/13

Transcription

1 E-Debit International Inc. Introduction to Transaction Processing Basic Overview of our Payment & Processing Systems 08/13

2 Introducing E-Debit International Payment program and the Westsphere Systems Inc. Processing System Domestic and International Financial Processing E-Debit International Inc. & Westsphere Systems Inc. (WSI) through its worldwide partners and relationships have developed a unique payment and processing system leveraging the security of pre-paid cards and an On Us processing relationship. Unlimited Electronic Access to Products and Services Utilizing the worldwide explosion of online payments, WSI offers a wide range of processing of payment products. From your home computer to a POS device located in another country, WSI offers an end to end payment solution. Services for Banked and Un-Banked Customers The goal of E-Debit is to provide a 100% financial solution to anyone in the world. This includes the vast majority of clients that are un-banked worldwide and providing to them the same products as traditional banked customers. Enhanced Financial Processor WSI processor utilizes the Best in Class world-class banking switch platform provided by ACI Worldwide (ACI)( ACI Worldwide is a global provider of electronic payments solutions for the world s top financial institutions, retailers and payment processors. Customers rely on ACI software and services to deliver reliable, scalable and secure payment services every second, every day. WSI is able to leverage this relationship to provide the following merchant services: Credit Card Transactions Debit Card Transactions Currency FX s EFT Transactions Smart and Prepaid Debit Cards, Gift Cards Money Transfers Government Issued Card Programs (social programs) Vendor Sponsored Loyalty Cards 2

3 Structure Background/Description WSI is a Canadian based Corporation incorporated in the Province of Alberta in January of WSI was incorporated to provide E-Debit Global Corp. or its joint venture relationships an inhouse proprietary development space and business support for system growth, enhancement, integration and/or expansion related to its business within the non-conventional banking business. On March 15, 2007 WSI received approval by the Canadian Interac Association to participate as an acquirer in the Associations Shared Cash Dispensing Service (SCD Service) and as an acquirer in the Associations Interac Direct Payment Service (IDP Service). These approvals place WSI as an Indirect Connect and allows for its development of a financial processing Switch. WSI s Switch went live on November 11, Switch Overview A Switch is a computer system consisting of hardware and software that receives requests for financial transactions from typically ATM terminals, POS (Point of Sale) or electronic transfer terminals in retail businesses and routes those transaction requests to and from the devices and financial institutions for final transaction processing and/or authorization. In Canada, the Canadian INTERAC Network coordinates this activity. Under deregulation, nonfinancial institutions that are members of INTERAC are allowed to be an indirect connect. These indirect connectors provide the switching services for shared cash dispensing, data processing and other associated services in connection with the network. Pursuant to the rules and regulations set out by INTERAC and current switch technology, a switch can process in excess of 10,000 transactions at any given time. Switches process and are the point of entry for all ATM and POS (debit and credit) transactions for Financial Institutions (FI) including the major banks (Schedule A), the credit unions and other trust entities (Schedule B banks, etc.) and the White Label market (on behalf of ISO s Independent Sales Organizations). While the major banking institutions are able to process their customer s transactions directly, switches indirectly acquire and process Schedule B and white label transactions into the network. Basic Transaction Flow 1. Client will initiate a transaction (ATM, POS, online, etc.) 2. Transaction is captured and sent to WSI s switch. 3. The Base24 switch routes the transaction to Moneris (our Canadian gateway provider). 4. Moneris routes the transaction to the appropriate Association Network. 3

4 5. The Association Network will authorize or decline the transaction. 6. The transaction result will then travel back through the network in reverse order to the client whereby they will receive approval at the ATM/pos device or online at the kiosk where the transaction was initiated. Basic Settlement Flow 1. The Association Network (INTERAC) will settle with Moneris for all Issuer Funds owed to WSI as an acquirer on a nightly basis. 2. Moneris will then transfer these funds into WSI s settling account(s) including all vault cash amounts, POS amounts, surcharge revenues and interchange amounts. Moneris will also debit this account automatically for all processing fees. 3. Moneris will provide a nightly report for WSI and ACI that is used do a match and kill process to reconcile that Moneris and WSI saw the same transactions and that the day s transactions balance on both sides. a. Any non-matching transactions are then passed forth to WSI for investigation. 4. WSI will nightly prepare an ACH file that will distribute the funds received to any FI on behalf of the account holders, ISO s, vendors, cash suppliers, etc. a. Schedule A FI s will receive and credit account holders the next business day. b. Schedule B FI s may take an additional day. c. Worldwide FI s may take up to 48 hours depending on the relationships negotiated with these FI s. 5. WSI will prepare a nightly settlement report for each receiving party. 4

5 Methods of Deployment WSI system can be utilized using existing ATM & POS devices and/or web applications that accept most forms of payment and dispense and/or transfers cash, credit and various other products and services. Custom applications can be developed for third parties that will include co-branding of smart cards and/or loyalty programs. Fees and charges will be negotiated depending on scale and scope of application development. Introduction to e-debit (E-Debit international card management system) E-Debit is a registered trademark held by E-Debit International Inc. Based on a standard North American debit card system (Interac model) Will accept virtually any form of payment. Provides for a wide range of policies, rules and regulations in order to comply with all local and federal laws. Exportable and expandable for a true global presence. Designed to deliver banking type services to an un-banked customer. Converts real currency to various products and services (money transfers, internet payment options, ATM and POS transactions, etc.) Transfers currency to stored value cards. 5

6 o o o o o o Smart Cards (EMV enabled) Prepaid Debit Cards Government Issued Payment Cards Employer Issued Payroll Cards Student ID Cards Hotel/Resort Room Keys with full debit capability Utilizes these stored value cards to make purchases for products and services in a unique set that is not bound to traditional forms of payment (credit/debit systems). Ability to co-brand and do co-marketing campaigns with almost any 3 rd party vendor. Ability to offer a unique multi wallet capable card o Different currencies available on the same card providing a unique card with no FX fees at time of purchase. o Provide a true expense account wallet on the same card. E-Debit is a true Open System Processor which will utilize and bridge its Westsphere Systems Inc. switch relationship with ACI which has a worldwide presence and processes transactions for over 500 worldwide banks and FI s. Relationships can be quickly expanded to different countries and will simply plug-in to this existing North American framework. 6

7 Transfer Currency to Stored Value Cards 7

8 Types of Transactions $ International Currencies 8

9 Basic Transaction Loop Basic Local Transaction Loop for E-Debit 9

10 Basic Enhanced Services Network Diagram Transaction Devices Vendor Products & Services Automated Teller Machines Transaction Processing Utility Payments Device Location TCP/IP VPN Vendor Transaction TCP/IP VPN IBM AS/400 Multi-function Financial Centers Products & Services Enhanced Point of Sales Transactions Terminals (2) (4) TCP/IP Government Services ecommerce ASync VPN Bank Card Processing Bank Card Unbanked Production Stored Value Processing Data Warehouse Enhanced Data Warehouse Credit (1) Financial Service Currency (2) Mainframe Processor Transactions Enhanced Financial Debit (3) Processor Service Transactions Stored Value (4) MasterCard Vendor Services Credit & Debit Networks Security E-Debit provides an end-to-end level of insurance for all transactions based on the EMV enabled chip technology, plus the added security of PIN based transactions to form a dual layer of security. With the growing worldwide acceptance of Smart Cards, E -Debit will add all future security layers (when available) as well as proprietary security levels to enable full transaction security for both the customer and the vendor. The need for holdbacks and claw backs will be virtually eliminated. E-Debit Global Presence E-Debit is capable of developing a wide range of global partners to not only utilize the E-Debit card system on their networks, but will also provide the global footprint for any 3 rd party proprietary card systems based on the E-Debit platform. The solution can simply be rebranded in many forms in virtually any country as long as all local, state, federal and international laws are adhered to. 10

11 E-Debit Forecast E-Debit has and will establish worldwide policies, rules and regulations to address currency & stored value (for un-banked and banked) customers by offering the same advantages in the world economic system as a banked customer. E-Debit with its relationship with Westsphere Systems Inc. has the ability to establish a global network, that will include Governments, Financial Institutions and world partners participating in the utilization of the E-Debit system of servicing the un-banked customer in an electronic payment system. Market Banked Un-banked *European Countries 65% 35% Asian Countries 20% 80% Latin American Countries 30% 70% Mid-Eastern Countries 15% 85% African Countries 10% 90% * UK is not included in this total and percentages are estimated on World Bank Estimates. There are a greater number of un-banked customers worldwide than there are banked customers in the world. Most developing countries do not have a well-established banking system in place for the majority of their populations. These customers are becoming more and more exposed to the internet and its forms of e-commerce and are in need of a banking solution and card payment system. Typical Transaction Categories 11 Here is a brief list of possible transaction categories: Currency Stored Value Cards 1. Currency to Foreign Currency 1. Stored Value to Currency Transfers 2. Currency to Negotiable Instruments 2. Stored Value to Negotiable Instruments 3. Currency to Smart Cards (Stored Value) 3. Stored Value to Stored Value 4. Currency to Magnetic Cards (Stored Value) 4. Stored Value to Stored Value 5. Currency to Vendor Products & Services 5. Stored Value to Point of Banking 6. Currency to Payment Services 6. Stored Value to Prepaid Services 7. Currency to Payment Collection 7. Stored Value to Payment Collections 8. Currency to Point of Banking 8. Stored Value to Payroll Services 9. Currency to Governmental Services 9. Stored Value to Governmental Services 10. Currency to Payroll Services 10. Stored Value to Education Services 11. Currency to Education Services 11. Stored Value Transfers 12. Stored Value Balance Enquiries 13. Stored Value to Stored Value Statements

12 Typical Transaction Types 1. Local Currency to Foreign Currency 2. Negotiable Instruments a. Money Orders b. Bank Cashier Checks c. Bank Drafts d. Travelers Checks 3. Smart Cards a. Write Value and Dispense b. Recharge Values c. Account for Values 4. Prepaid Debit Cards a. Write Value and Dispense b. Recharge Values c. Account for Values 5. Vendor Products a. Product Purchases b. Special Disbursements 6. Payment and Collection Services a. Note Payments b. Insurance Payments c. Assessment Payments d. Bill Payments (Private Loan Repayments) 7. Point of Banking a. Bank Teller Operations (deposits, etc.) b. Note Payments c. Investments Certificate of deposits d. Account Transfers e. Other Unattended Bank Operations (balance enquiries, etc.) 8. Governmental Services a. Motor Vehicle Registrations b. Library Fines c. Parking Tickets/Violations Fines d. Warrants e. Bonds 12

13 f. Tax Assessment Real Property g. Tax Assessments Personal Property h. Utility Department i. Application Fees ii. Deposits iii. Payments iv. Permits v. Other Governmental Services i. Social Assistance Programs 9. Payroll Systems a. Payroll Disbursements b. Expense Accounts c. Gas Cards 10. Prepaid Services a. Utilities i. Water ii. Gas iii. Electric iv. Telephone (local service) b. Long Distance Services c. Internet Services d. Cellular Services e. Prepaid Products (stored value/gift cards) i. Gas Cards ii. Store Gift Cards iii. Promotional Services Cards f. Ticketing Services i. Ferry ii. Air iii. Rail iv. Bus v. Taxi vi. Concert vii. Cultural Performances The above referenced services may be expanded to include most any product or service that requires a financial transaction with money to be moved from one account to another. In addition, the transactions may be an off-line processed transaction or an online transaction. 13

14 The system will provide a complete audit, reporting and settlement between participating processors, switches and gateway switches both domestically and internationally. E-Debit Specification Requirements 1. Equipment and Software Must Accept Any Form of Payment 2. Network to Route and Gateway all Transactions Locally and Globally 3. Financial Institutions to participate in sponsorship and support standard ACH Fund Transfers 4. PCI Compliance to Ensure Integrity of the Payment System 5. Leveraging Processors Worldwide to Provide Transaction Processing 6. Financial Institutions to Settle all Transactions within hours 7. E-Debit to Provide International Network and Exchange Policies and Rules and Regulations. Capturing and Dispensing Transactions 1. All Hardware Device Transactions Performed Locally and Dispensed Locally 2. All Internet Transactions Processed Through E-Debit Gateway 3. All Transactions Terminated at point of Origin Device or IP Address E-Debit Benefits To local country: Population can now receive the same benefits of a banked customer Pay bills electronically (utilities, telephone, taxes, etc.) Population can but worldwide products and services with currency or stored value cards that are globally accepted Help reduce the cost of living Access to global marketplace Provides unlimited services to the un-banked To Financial Institutions: Earns fee income Merchant Sponsorship Earns fee income from un-banked customer pool Brings point of banking to the untapped un-banked customer Stored value card branding and co-branding Exposure to mew market segments Can participate in new fee revenues To Merchants: 14

15 Merchant handles less currency and minimizes any security risks Merchant has in-store audit accountability Vendor merchant markets products remotely Increases traffic and sales volumes with less inventory on hand Can share in fee income and sells more commission based products Building Blocks to the System 15