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visa money transfer

For Visa Internal Use Only. Objectives. To explain to Vendors how Members can use the Visa Network to transfer funds worldwide using their existing infrastructure: ATMs, Branch or Internet. For Visa Internal Use Only. Overview. Visa has launched a global money transfer service to enable funds to be sent to and from any Visa card worldwide* Members can use their existing investment in Visa and drive transactions through VisaNet as a cost effective tool for processing transactionsVisa has de1140

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visa money transfer

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    1. For Visa Internal Use Only Visa Money Transfer Chris Corbett Visa CEMEA Vendor Relations Training Workshop London 27 January 2006

    2. For Visa Internal Use Only Objectives To explain to Vendors how Members can use the Visa Network to transfer funds worldwide using their existing infrastructure: ATMs, Branch or Internet

    3. For Visa Internal Use Only Overview Visa has launched a global money transfer service to enable funds to be sent to and from any Visa card worldwide* Members can use their existing investment in Visa and drive transactions through VisaNet as a cost effective tool for processing transactions Visa has developed and piloted globally interoperable standards that comply with the regulatory requirements specific to funds transfer * Unless local law prohibits this

    4. For Visa Internal Use Only What are “Push” Payments? In the traditional Visa card payment model, funds are pulled from a cardholder’s account by the cardholder’s Member, resulting in a debit to the cardholder’s account For a push transaction, senders instruct their Member to “push” payment to the recipient’s account through the recipient’s Member, resulting in a credit to the account The Original Credit is the first Visa transaction using the push payment model “What if”…you could flip this model around? This is called the Push Model.“What if”…you could flip this model around? This is called the Push Model.

    5. For Visa Internal Use Only What Are Original Credits? An Original Credit is a push transaction initiated by a Member on its behalf or on behalf of one of its merchants that results in a credit to a Visa account. Original Credits enable funds to be sent to any entity with a Visa account number.

    6. For Visa Internal Use Only Current Applications Original Credits are being used for money transfer products and services in: Visa Asia-Pacific (domestic money transfers in India) Visa CEMEA (domestic / cross-border) Visa Europe (domestic / cross-border) and for payout of winnings from online gambling merchants in Visa Europe

    7. For Visa Internal Use Only Uses for Original Credits Today Money transfer – including but not limited to: Salary remittances by foreign-born workers Travelers needing emergency cash Gifts Funds disbursements – including but not limited to: Payroll disbursements Business expense reimbursements Rebates, rewards, and winnings Health care reimbursements Insurance reimbursements Note that C2C is often called P2P (person-to-person.) However, P2P is also used to mean the online exchange of digital content between consumers. P2P has also been used to refer to money transfer services that are necessarily internet-based. Therefore the term C2C was adopted for this presentation. Regional staff using this presentation to speak to Members should use whatever terminology they find most suitable. These are some of the applications or categories of applications, in no particular order, and there are others. Inherent in each of the applications is a unique set of business requirements driven by the consumer characteristics, transaction characteristics, and environment. These factors all determine what features a successful C2C service should have to meet the market requirements. Salary remittances refers to sending all or a portion of a salary to another party. Includes immigrants sending money to family in their home countries, expatriate workers on assignment abroad sending money home to accounts held by themselves of associates to cover personal and business expenses, migrant workers temporarily working abroad for the tourist season, the holiday season, the school season, the harvest season… Typically these types of payments are sent to the same recipient, on a regular basis, in somewhat regular amounts (research has suggested $250, once per month.) Therefore, a service that includes a registration process to collect sender and recipient details so that they do not have to be reentered every month would be suitable for this market. Also, many recipients are unbanked. A service that integrates a prepaid Visa card on the recipient side could help serve unbanked users. Online auctions have driven C2C payment growth domestically. Auction buyers and sellers are unacquainted with each other and therefore might benefit from a service that manages the dialogue between the two parties to collect financial details, serves as an intermediary in case of disputes related to receipt or quality of goods, and provides an audit trail. Domestic employee payments such as gardener, baby sitter, maid, maintenance person, alimony and child support payments, and other small business transactions are included in this category. For these examples, payments are made to known parties, although financial details may be better handled by the service rather than the consumers. An audit trail is useful. A registration process may be useful. Gifts, on the other hand, are typically made on a one-time basis and no audit trail is necessary. Students studying abroad often require support from family and others. Often students are unbanked making them good candidates to prepaid cards. They do tend to use the internet so an internet based solution could be appropriate.Note that C2C is often called P2P (person-to-person.) However, P2P is also used to mean the online exchange of digital content between consumers. P2P has also been used to refer to money transfer services that are necessarily internet-based. Therefore the term C2C was adopted for this presentation. Regional staff using this presentation to speak to Members should use whatever terminology they find most suitable. These are some of the applications or categories of applications, in no particular order, and there are others. Inherent in each of the applications is a unique set of business requirements driven by the consumer characteristics, transaction characteristics, and environment. These factors all determine what features a successful C2C service should have to meet the market requirements. Salary remittances refers to sending all or a portion of a salary to another party. Includes immigrants sending money to family in their home countries, expatriate workers on assignment abroad sending money home to accounts held by themselves of associates to cover personal and business expenses, migrant workers temporarily working abroad for the tourist season, the holiday season, the school season, the harvest season… Typically these types of payments are sent to the same recipient, on a regular basis, in somewhat regular amounts (research has suggested $250, once per month.) Therefore, a service that includes a registration process to collect sender and recipient details so that they do not have to be reentered every month would be suitable for this market. Also, many recipients are unbanked. A service that integrates a prepaid Visa card on the recipient side could help serve unbanked users. Online auctions have driven C2C payment growth domestically. Auction buyers and sellers are unacquainted with each other and therefore might benefit from a service that manages the dialogue between the two parties to collect financial details, serves as an intermediary in case of disputes related to receipt or quality of goods, and provides an audit trail. Domestic employee payments such as gardener, baby sitter, maid, maintenance person, alimony and child support payments, and other small business transactions are included in this category. For these examples, payments are made to known parties, although financial details may be better handled by the service rather than the consumers. An audit trail is useful. A registration process may be useful. Gifts, on the other hand, are typically made on a one-time basis and no audit trail is necessary. Students studying abroad often require support from family and others. Often students are unbanked making them good candidates to prepaid cards. They do tend to use the internet so an internet based solution could be appropriate.

    8. For Visa Internal Use Only Transaction Flow Originator initiates payment before/after delivery Originating Member can ensure good payment data Original Credit is transmitted to the Recipient Member …and finally deposited to the Recipient Originator initiates payment before/after delivery Originating Member can ensure good payment data Original Credit is transmitted to the Recipient Member …and finally deposited to the Recipient

    9. For Visa Internal Use Only Visa Money Transfer Overview Description of Money Transfer Process at POS The process for sending a POS-initiated money transfer should include the following steps: - The sender initiates a money transfer transaction in the branch of a member registered to be a Sender Bank for OCs or at a merchant location (where the merchant is acquired by a registered member); The sender is authenticated in line with anti-money laundering (AML) guidelines, know your customer (KYC) processes and local currency transfer legislation; The sender funds the money transfer with a choice of cash, debit from a bank account or Visa card; The sender provides the Visa card details of the beneficiary (recipient); The Sender Bank (directly or on behalf of a merchant) submits the transfer plus any relevant transaction related data into via VisaNet using an OC; The Beneficiary Bank (recipient’s card Issuer) credits the OC transfer to the beneficiary’s Visa account.Description of Money Transfer Process at POS The process for sending a POS-initiated money transfer should include the following steps: - The sender initiates a money transfer transaction in the branch of a member registered to be a Sender Bank for OCs or at a merchant location (where the merchant is acquired by a registered member); The sender is authenticated in line with anti-money laundering (AML) guidelines, know your customer (KYC) processes and local currency transfer legislation; The sender funds the money transfer with a choice of cash, debit from a bank account or Visa card; The sender provides the Visa card details of the beneficiary (recipient); The Sender Bank (directly or on behalf of a merchant) submits the transfer plus any relevant transaction related data into via VisaNet using an OC; The Beneficiary Bank (recipient’s card Issuer) credits the OC transfer to the beneficiary’s Visa account.

    10. For Visa Internal Use Only POS Application Definition Members need to understand the capabilities of existing POS terminal infrastructure to support the new application and should consult with vendors Members need to define the money transfer process: i.e. how the transaction will be initiated; how data must be entered (key entry / swipe) whether KYC checks should be conducted via POS or as manual In summary, Members must decide how large a role the POS application will play in the end-to-end money transfer process

    11. For Visa Internal Use Only ATM Implementation requirements ATM terminals to be coded to recognise AFTs and OCs ATM host to be coded to read and process AFTs and OCs ATM screens to be built (see example screens later in document) Registration process to be designed if the service is to be offered to non-customers to ensure compliance with KYC and any relevant local regulatory requirements Sending limits and consumer pricing need to be agreed and incorporated into system by Member

    12. For Visa Internal Use Only Welcome Screen Customer inserts card Magnetic stripe read Customer enters PIN PIN verified This is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PINThis is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PIN

    13. For Visa Internal Use Only Transaction Type Screen Customer selects “Transfer funds” Terminal collates required data for the AFT and OC messages: Dual Message ATM Acquirers BI – 0100,10* – AFT Authorisation BII – TC05,1** – AFT Clearing BII – TC06,2** – OC Clearing Or SMS ATM Acquirers SMS – 0200,10* – AFT SMS – 0200,26* – OC Both AFT and OC messages should be coded with MCC of 6012 This is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PINThis is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PIN

    14. For Visa Internal Use Only Selection of Funding Account Customer selects funding account type Terminal collates account data to apply to AFT This is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PINThis is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PIN

    15. For Visa Internal Use Only Selection of Destination Account Customer enters recipient’s 16 digit Visa card number Recipient card number collated along with net amount of credit, e.g. $200.00, for population of Original Credit message ATM Acquirers may choose to enable expiration of this screen (e.g. after 60 seconds if the customer still hasn’t entered a card number) and for the AFT Authorisation or SMS message to be reversed and discarded ATM to pre-edit to ensure card number begins with 4 This is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PINThis is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PIN

    16. For Visa Internal Use Only Transfer Amount Customer inputs transfer value Service fee disclosed to customer If customer agrees to proceed: Gross amount (transfer value and service fee) will be debited from the funding account so the AFT message needs to be populated accordingly, e.g. $200.00 + $10.00 Authorisation for AFT is sent to issuer host If customer cancels, process is discontinued and card returned This is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PINThis is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PIN

    17. For Visa Internal Use Only Transaction Authorised If the AFT is authorised, a unique transaction reference code should be generated and the customer should see the following screen This is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PINThis is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PIN

    18. For Visa Internal Use Only Print Transaction Receipt Receipt printed with: Time and date Location Transfer value, including fee Recipient BIN (but not the full card number for security reasons) Details of minimum time for transaction to clear Transaction reference number This is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PINThis is how we envision the service working, from the cardholder perspective The sender inserts ATM card and enters PIN

    19. For Visa Internal Use Only Summary There are a wide range of POS/ATM terminals available on the market Members are advised to consult with Vendors identify the suitable terminals to meet their programme requirements The communication and connectivity options available with the POS will determine where and how the device can be used Opportunity for Banks to grow revenue from the high-growth global remittance market Low cost solution for Members with cost effective processing of transfers via VisaNet Proposition reach: global access to Visa’s network of member banks New, differentiating proposition to add to Members current product offerings: transfers can be funded by card, cash or bank account

    20. For Visa Internal Use Only Thank you

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