How to get started?

How to make your cards operable? You need to have a solution to produce cards and to process card related transactions. Card transaction means online messages sent from card point of sale to card issuing and back with the main purpose to check the availability of funds of the particular cardholder. Such messaging is mostly based on implementation versions of the standard called ISO8583. Being financial organization – you have probably some sort of general ledger system – keeping information on customer debit or credit account balances – and the challenge is to have interface towards schema selected in order to be able to adjust your customers account balances according to card usage.

A new player is stepping in, which is processor or 3rd party payment service provider. It’s just a company having built working interfaces towards card schemes and having some sort of interfaces available towards financial institutions. They can offer more card related services as well, like card data management; Point Of Sale and ATM management.

Plasic and design

For the production of the cards, at least so far until all of them will be moved to smartphones, you need to find a card producer and personalization service provider. In most cases those service is offered by the same company. The card design has to follow rules of the card schemes. The design process should start as soon as possible. Design matters and takes always more time than planned.

 

Chip

Chip producers and chip operational systems are different, memory sizes and functions are different. As standard chip options are offered by your Payment Service Provider. We advise to use as much technologically advanced option as possible to avoid the need to change chips in nearest future and select chips that having just enough memory to run the standard EMV applications.

 

PIN

Personal Identification Number is some digit’s code to ensure that cardholder is right cardholder using the card. There are some non-printing options of PIN delivery available, like SMS and PIN via net/mobile self-service. In this case, you might face the need keep PIN and card management in house. From the technical point of view your company needs an ability to send personalization file to your card personalization vendor. In case having in house card management most probably it would be possible to create such file in house and send on daily or some periodic basis to personalization company. In case of card data management is outsourced it might be possible to use services of your processing Payment Service Provider to add card specific data into card ordering file and send them to card personalization company. Card schemes would like to approve cards, designs, and profiles. Your trusted Payment Service Provider will do it for your company.

Card profiles

The card profile is set of card-related parameters stored on the chip. Some of them can be changed after the card is issued to the customer, some of them not. You should think about your customer needs and allow ATM transactions or not, because a change options after the card is issued is difficult. This will minimize the risk that your cardholders cannot use some services in the future due to the reason that such particular service is blocked by card. Card profiles are also defining how card shall act in different situations when offline, online, how many PIN entries before the card is blocked, how to act with contact or the contactless environment. Try to keep it simple.

 

Card delivery

How to handle the card delivery to your customer? There are some possibilities to do that. The card can be send by your Payment Service Provider by Mail to your customer. You can also use a physical branch or cooperate with shops that are allowed to sell the cards on the counter. Another solution could be your representatives hold some cards on stock an give it to your customers. In each case you need to think on options of the activation of the card, e.g. mailed cards shall be closed for use and to be activated by the customer via online application or via the web, alternative by first PIN-based transaction.

Testing – Up and running

Before you can start giving your branded card to your customer, some certification processes and testing has to be done with your Payment Service Provider and the card schemes. If tests and certifications are successful you will agree on a going live date. From that date your cards will work in the card schemes worldwide network. You can start your KYC process with your customer, collect the data and send it over to your Payment Service Provider, always depending on the KYC Level. The cards will be printed by your Service Provider and your customer can hold your branded card in his hands.