SERVICE DESCRIPTION FOR NETS REALTIME24/7

Transcription

1 SERVICE DESCRIPTION FOR NETS REALTIME24/7

2 This paper contains a high level service description and presentation of the underlying principles and the functionality of the Nets RealTime24/7 solution. Modularity The Nets RealTime24/7 clearing solution is built on the principle of modularity, which provides a number of benefits and advantages. These include a high degree of flexibility customers may select which functional modules are required, and only pay for these. RealTime24/7 Core ISO rules Synchronous communication Resending management Timeout management Settlement Operator portal Schemes Validation rules Return transactions Format support Individual scheme handling Clearing apps Modularity also shortens the implementation phase, as many of the modules can be adapted easily to individual customer needs. Time to market is thereby shortened significantly compared to implementation of individually and separately configured solutions. Liquidity Management SWIFT Participant portal Fraud screening Bulking* Participant monitoring Participant Billing Reports Multi currency* Mobile P2P app* Asynchronous comm. (MQ) Participant web services Signature Mandates and Preferences* Tokenisation * Available in Figure 1. RealTime24/7 modules 2 Nets RealTime24/7

3 REALTIME24/7 CORE The RealTime24/7 Core consists of the basic services, which constitute the minimum set of functionalities needed to process transactions (messages) when using Nets RealTime24/7 clearing system to handle single transactions. Standard APIs for interfaces to a participant register and local banking calendars are included in the Core. ISO rules Nets RealTime24/7 s native language is ISO The ISO basic rule validation service covers all the basic pre-defined international ISO schemes rules for any standard ISO message supported in the clearing system. Synchronous communication Communication between the sending/receiving agent and RealTime24/7 is done through a synchronous web service interface (HTTP(S)). The solution is channel agnostic, and the synchronous interface can be replaced by other interfaces. Please refer to the Clearing apps section for details of other communication interfaces In addition, RealTime24/7 is built to support easy integration with mobile applications. Resending management To provide a clear responsibility model, the sending agent always has the responsibility for the transaction, until a positive or negative status report is received. It is the sending agent who has to resend the original transaction if no status reply has been received within the expected timeframe. If a retransmission is received, the system will respond with a response identical to the previously sent response but not effectuating any further actions including liquidity changes. Settlement Settlement can be done as Deferred net settlement (and/) or as Real-time settlement. When using Deferred net settlement, prefunded liquidity is typically used, and RealTime24/7 creates a settlement instruction with net positions to the Central Bank or to Target2. The number of daily settlement cycles and the timeframe for each cycle is easily configurable in the system. To finalise a cycle, direct participants receive a Cycle Reconciliation Report. This provides the participants with an overview of each cycle in order to reconcile positions on the accounts. The use of Real-time settlement enables RealTime24/7 to settle transactions immediately. Real-time settlement is done against an external credit-line (RTGS). Direct participants are able to decide how outgoing transactions are settled. A combination of both Deferred net settlement and Real-time settlement is supported e.g. Deferred net settlement for low value transactions and Real-time settlement for high value transactions. Operator portal RealTime24/7 is (also) offered as off-the-shelf software. In order to provide system operators with a complete overview of the system, tools for system configuration, performance view, alarms, etc. is provided in the Operator portal. However, some maintenance downtime must be expected due to service windows in the SWIFT infrastructure. In addition, the SWIFT connectivity service also supports the interface against Target2. Timeout management The timeout service monitors all transactions. A timer will start when a transaction is delivered to the receiving agent. If no reply is received within a (configurable) defined time, the service will terminate the transaction and deliver a negative status report to the sending agent. Fast termination of transactions enables banks to provide a real-time response to their end-users ensuring a good user experience, as no transaction is left with an unknown status at any time. Nets RealTime24/7 3

4 SCHEMES The scheme modules contain a variety of services which offer additional functionality within schemes, syntax, business rules and validations. Validation rules The validation rules module handles all additional validations defined through business requirements in the system, e.g. the need for additional ISO business rules, country-specific scheme requirements or any other agreed validations due to local market practice. Customer-specific validations are parameters which can easily be added or changed at short notice. Return transactions This service supports the use of return transactions in Real- Time24/7. Return transactions can be sent immediately after the original transaction is completed. Adding return transactions provides banks with the possibility to handle any return/ response mechanism including disputes related to the payment such as fraud, wrong recipient, duplications, etc. Format support Nets RealTime24/7 is natively based on ISO With Format support, the system can handle additional ISO formats and/or regional/local proprietary formats (if required). Individual scheme handling By implementing individual schemes, Nets RealTime24/7 can be further adapted to meet local requirements, rules and setups which are part of bilateral agreements. These can be country-specific schemes and implementation guidelines, where some parties have agreed to use extra elements etc. Essentially, it supports any additional or bilaterally agreed overlay service by keeping track of local rules and messages. All rules can be translated into validations and added on top of the validation service. 4 Nets RealTime24/7

5 CLEARING APPS RealTime24/7 is supported by a wide range of value-added clearing applications, which provide banks, merchants and end-users with additional services to improve the user experience and contribute to increased functionality of the system. There are no dependencies between the services, and therefore Nets can provide a solution designed to fit customers requirements based on a high degree of standard and configurable modules. Nets is continuously adding new applications, and in addition, RealTime24/7 offers open APIs either directly to the banks or to others in order to cater for further product development. Liquidity Management The Liquidity manager offers advanced liquidity management rules for efficient and cost-saving utilisation of liquidity, plus an ideal online tool to manage the liquidity rules. The participants are in full control, and are able to manage their liquidity usages continuously. Furthermore, the Liquidity manager is designed for use by multiple clearing systems e.g. batch and real-time clearing systems (including existing systems). Participant monitoring With this service, all participants are monitored. Real- Time24/7 sends a ping at fixed intervals to all participants. The purpose is to determine whether a participant is able to receive transactions at a given moment. With this functionality, all participants are able to monitor the status of other participants in the system providing them with the ability to manage their own systems as well as passing this information on to their end-users. Asynchronous communication (MQ) Nets RealTime24/7 supports an asynchronous interface WebSphere (MQ). The protocol can be used as a stand-alone solution, or combined with web services or SWIFT (e.g. the sender agent is using web service and the receiver agent is using MQ). SWIFT Nets RealTime24/7 supports SWIFT as an interface. The protocol can be used as a stand-alone solution, or combined with web services or MQ (e.g. the sender agent is using web service and the receiver agent is using SWIFT). However, some maintenance downtime must be expected due to service windows in the SWIFT infrastructure. In addition, the SWIFT connectivity service also supports the interface against Target2. Participant billing The participant billing API delivers integration between Nets RealTime24/7 and ERP systems, to simplify the invoicing process. The API supports a multitude of invoicing services, including total invoicing or invoicing per clearing participant. Participant web services With the participant web services API, clearing participants can access the same information as with the online user interface. This enables banks to create their own online user interfaces. The service may be used as an alternative to the online user interface, or in combination. Participant portal The service provides a range of different graphical user interfaces, which can be used by clearing participants to enquire about their own transactions, see forecasts/net positions, manage liquidity, view the status of real-time performance and check the operational status. As an optional service, the same information is accessible via the web service API. Reports The report service makes relevant reports available to backoffice functions, such as service level agreement reports, transaction reports and reports on system performance. All reports can be distributed to a clearing system operator and/ or to clearing participants. Signature With this service, all transactions sent between sending agents, receiving agents and Nets RealTime24/7 will be signed by the sender. This applies to both input and response messages, regardless of communication channel. By adding a signature in all transactions, security is further enhanced. Fraud screening The service detects fraud patterns and anti-money laundering screening. All information can be exchanged in real time between participants in Nets RealTime24/7. Nets RealTime24/7 5

6 Multi-currency When handling of more than one currency in the real time clearing system is required, the multi-currency option is required. Mandates and Preferences RealTime24/7 can be offered with a mandate management service, which is used to approve payments on behalf of any given debtor. For example, this service can be used when handling request for payments. Bulking The bulking service handles bulks with an almost unlimited number of transactions in each bulk. By adding this functionality, Nets RealTime24/7 can completely replace existing batch clearing systems. Bulking transactions will be processed with a lower tier. Mobile P2P app A Mobile P2P application can be provided as a centralised app or as a white-label app. The white-labelled solution is delivered to participating banks, and is integrated with own apps, mobile banking etc. Transactions are routed from the app via the banking systems to RealTime24/7. The centralized solution is hosted by Nets, and interfaces against participating banks via an API. Transactions are routed from the app via RealTime24/7 to the bank of the originator of the payment. In connection with the tokenisation module, account numbers are converted to phone numbers, in order to provide end-users with an easy and smooth payment experience. Adding this functionality supports boosting the traffic in the system from day one. Tokenisation The tokenisation module supports routing and conversion of mobile numbers or any other proxy into accounts numbers. This allows customers to use mobile numbers as account identifiers providing a smooth customer experience in the customer channels for example in the Mobile P2P app. In addition, this module also supports enrolment of new customers in the Mobile P2P app. Nets A/S CVR-nr Lautrupbjerg 10 DK-2750 Ballerup T F Nets RealTime24/7