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Success factors for building a European Card Payment System Yves RANDOUX

Success factors for building a European Card Payment System Yves RANDOUX ENST « Economics of Payments Systems » Conference Paris, 26 October 2007. 1. Basic Conditions. A payment system is the expression of the SOVEREIGNTY of a State SOVEREIGNTY can be limited or extensive

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Success factors for building a European Card Payment System Yves RANDOUX

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  1. Success factors for building a European Card Payment System Yves RANDOUX ENST « Economics of Payments Systems » Conference Paris, 26 October 2007

  2. 1. Basic Conditions • A payment system is the expression of the SOVEREIGNTY of a State • SOVEREIGNTY • can be limited or extensive • is based on the CONFIDENCE of its citizens • is structured by the State • is formalised through legal dispositions, established either by the LAW or through CONTRACTS • In most countries, the Central Bank plays the role « GUARDIAN» of this CONFIDENCE

  3.   Quotes to illustrate the different conceptual views (1)

  4.   Quotes to illustrate the different conceptual views (2)

  5. 2. Key Success Factors in a Payment System(1) Above everything else, … … there is a need for a shared PROJECT which integrates (at least) the following considerations : • a) Technology and Security • b) Organisation and Legal • c) Economic and Financial • without neglecting a very special ingredient : the commitment of a maximum number of interested parties to the success of the PROJECT ...

  6. 2. Key Success Factors in a Payment System(2) Above everything else, … … there is a need for a shared PROJECT which integrates (at least) the following considerations : • a) Technology andSecurity • b) Organisation and Legal • c) Economic and Financial • without neglecting a very special ingredient : the commitment of a maximum number of interested parties to the success of the PROJECT ...

  7. Principle functional domains in a Card Information System EXCHANGE LAYER Oppositions Card Ranges & Establishments 1 2 PLAGES Exetended stop list OPPOTOTA Enquiries & Surveillance 3 ETABLISHMENTS LISTE VSD 4 DAB/GAB C.H.N. Acceptors Fraud Prevention Cash Withdrawals Fraud Prevention Payment 1 BIN : Range of Card Numbers 2 List of stopped card numbers 3 Card numbers for which the signature has been copied 4 Non-standard Merchants

  8. 2. Key Success Factors in a Payment System(3) Above everything else, … … there is a need for a shared PROJECT which integrates (at least) the following considerations : • a) Technology andSecurity • b) Organisation andLegal • c) Economic and Financial • without neglecting a very special ingredient : the commitment of a maximum number of interested parties to the success of the PROJECT ...

  9. The principal protocoles to be standardised in a card system Merchant Bank Cardholder Bank Clearing and Settlement Network ISO 8583 / XML Authorisation Network EPAS CAS CAS Card ERIDANE EMV co Payment Terminal or ATM CIR TWG CIR CWG

  10. Concluding Remarks • Building a payment system is not something which can be done with incantations or by waving a magic wand. • To succeed in the formidable challenge which SEPA represents, the real objectives must be clearly defined and managed as a project. • and it must be done with the participation of everyone concerned.

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