SMART E-Switch by CardSwitch Technology Ltd:

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CardSwitch Technology Ltd. presents the best solution to fight card fraud while guaranteeing an excellent quality of service to cardholders - www.cardswitchtechnology.com

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Presentation Transcript

Slide 1: 

Cardholder Online Merchant Merchant Bank Card Issuing SMART E-Switch CardSwitch Technology Ltd. presents the SMART E-Switch System, the only system that allows cardholders to electronically lock their card accounts by enabling them to set their own user limits and communicate these limits directly to their issuing banks. How does it work? Cardholder – also known as an accountholder. A person that opens an account and receives a card that has been issued by a Bank. Account can be a credit account, a charge (corporate) account, debit account or prepaid account. Therefore, card can be a credit card, corporate charge card, debit card or a prepaid account. Merchant Bank – also known as an Acquiring Bank. It accepts payments for the products or services on behalf of a merchant. The term acquiring indicates that the bank accepts or acquires transactions performed using a card account issued by a bank other than itself. Card Issuing Bank – Bank that offers and issues card association (visa, mc, amex, jcb, discover, diners) branded payment cards. This bank receives and processes all card authorization requests for payment cards that it has issued

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Cardholder Online Merchant Merchant Bank Card Issuing Steps 1 through 6 (below) shows the normal flow of an authorization request of an online payment using a card account. With any type of card transaction involving a point of sale, ATM withdrawal or an online payment, the cardholder never communicates directly with the Issuing Bank. Cardholder – also known as an accountholder. A person that opens an account and receives a card that has been issued by a Bank. Account can be a credit account, a charge (corporate) account, debit account or prepaid account. Therefore, card can be a credit card, corporate charge card, debit card or a prepaid account. Merchant Bank – also known as an Acquiring Bank. It accepts payments for the products or services on behalf of a merchant. The term acquiring indicates that the bank accepts or acquires transactions performed using a card account issued by a bank other than itself. Card Issuing Bank – Bank that offers and issues card association (visa, mc, amex, jcb, discover, diners) branded payment cards. This bank receives and processes all card authorization requests for payment cards that it has issued However, the authorization request eventually reaches the Issuing Bank. Most card fraud can be eliminated if Issuing Banks enable cardholders to control their own card accounts by allowing cardholders to set their own user limits (and prohibitions) and post these limits with their Issuing Banks. Issuing Banks can then use these user limits to determine whether to approve or reject card authorization requests. 1 2 3 4 5 6

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Cardholder Online Merchant Merchant Bank Card Issuing SMART E-Switch To electronically lock her card account against out-of-country (cross-border) ATM and card payment transactions, Kelly uses the SMART E-Switch Web Interface to set and post this limit and prohibition. By using an Issuing Bank’s SMART E-Switch System, a cardholder can post her own user limits and prohibitions for 3 types of card transactions* : Out-of-country ATM and card payments (also known as cross-border) card-not-present transactions (also known as MOTO – mail order telephone order) Local ATM Access to SMART E-Switch can also be through a secure SMART E-Switch mobile application, an IVR (Integrated vocal response) SMART E-Switch System by using a land-line, or by sending SMS commands (via a mobile). The SMART E-Switch System uses a strong multi-factor authentication method which banks can utilize for online banking. * Other types can also be controlled such as local transactions with amounts over X (determined by Issuing Bank) Since I’m not planning to travel anytime soon, I’m going to lock my card against foreign ATM and foreign payments !

Slide 4: 

Cardholder Card Issuing SMART E-Switch To electronically lock her card account against out-of-country (cross-border) ATM and card payment transactions, Kelly uses the SMART E-Switch Web Interface to set and post this limit and prohibition. Access to SMART E-Switch can also be through a secure SMART E-Switch mobile application, an IVR (Integrated vocal response) SMART E-Switch System by using a land-line, or by sending SMS commands (via a mobile). The SMART E-Switch System uses a strong multi-factor authentication method which banks can utilize for online banking. Since I’m not planning to travel anytime soon, I’m going to lock my card against foreign ATM and foreign payments !

Slide 5: 

Cardholder Card Issuing SMART E-Switch To electronically lock her card account against out-of-country (cross-border) ATM and card payment transactions, Kelly uses the SMART E-Switch Web Interface to set and post this limit. Since I’m not planning to travel anytime soon, I’m going to lock my card against foreign ATM and foreign payments !

Slide 6: 

Cardholder Card Issuing SMART E-Switch To electronically lock her card account against out-of-country (cross-border) ATM and card payment transactions, Kelly uses the SMART E-Switch Web Interface to set and post this limit. Since I’m not planning to travel anytime soon, I’m going to lock my card against foreign ATM and foreign payments !

Slide 7: 

Cardholder Online Merchant Merchant Bank Card Issuing SMART E-Switch To electronically unlock her card account to make an internet payment, Kelly uses the SMART E-Switch Web Interface to set and post this limit. By using an Issuing Bank’s SMART E-Switch System, a cardholder can post her own user limits and prohibitions for 3 types of card transactions* : Out-of-country ATM and card payments (also known as cross-border) card-not-present transactions (also known as MOTO – mail order telephone order) Local ATM Access to SMART E-Switch can also be through a secure SMART E-Switch mobile application, an IVR (Integrated vocal response) SMART E-Switch System by using a land-line, or by sending SMS commands (via a mobile). The SMART E-Switch System uses a strong multi-factor authentication method which banks can utilize for online banking. * Other types can also be controlled such as local transactions with amounts over X (determined by Issuing Bank) I’d like to buy groceries from my online supermarket.

Slide 8: 

Cardholder Card Issuing SMART E-Switch To electronically unlock her card account to make an internet payment, Kelly uses the SMART E-Switch Web Interface to set and post this limit. I’d like to buy groceries from my online supermarket.

Slide 9: 

Cardholder Card Issuing SMART E-Switch To electronically unlock her card account to make an internet payment, Kelly uses the SMART E-Switch Web Interface to set and post this limit. I’d like to buy groceries from my online supermarket.

Slide 10: 

Cardholder Card Issuing SMART E-Switch Kelly can always look at her user limits and prohibitions for each transaction type by looking at the summary page (Manage Card Account) of the SMART E-Switch web interface. Access to SMART E-Switch can also be through a secure SMART E-Switch mobile application, an IVR (Integrated vocal response) SMART E-Switch System by using a land-line, or by sending SMS commands (via a mobile). The SMART E-Switch System uses a strong multi-factor authentication method which banks can utilize for online banking. Now I’ve locked my card for out of country use AND unlocked it to make an online payment with my online supermarket.

Slide 11: 

Cardholder Card Issuing SMART E-Switch Kelly can always view her user limits and prohibitions for each transaction type by looking at the summary page (Manage Card Account) of the SMART E-Switch web interface. Now I’ve locked my card for out of country use AND unlocked it to make an online payment with my online supermarket.

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Cardholder Online Merchant Merchant Bank Card Issuing The following shows what happens when Kelly does an online payment for 200 gbp with an online merchant after she unlocked her card account for 250 gbp for internet, mail order / telephone order payments. Kelly’s sends her card details to the online merchant. The transaction amount is for 200 gbp. Online Merchants sends a card authorization request to its merchant (acquiring bank). Merchant Bank sends the card authorization request to Kelly’s Issuing Bank. SMART E-Switch System tags the card authorization request as type : internet, mail order / telephone order. SMART E-Switch System matches the transaction with Kelly’s user limit for this type of transaction. Since Kelly has previously unlock her card account for this type of transaction for the amount of 250 gbp, SMART E-Switch then ‘allows’ this card authorization and subtracts the 200 gbp from Kelly’s 250 gbp limit. Kelly’s new user limit for this type of transaction changes to 50 gbp. SMART E-Switch advises Issuing Bank to approve the card authorization request. Issuing Bank sends the approval response to the Merchant Bank. Merchant Bank sends the approval response to the Online Merchant. Online Merchant sends a successful confirmation of Kelly’s payment. 1 2 3 4 5 6 SMART E-Switch I’ve unlocked my card for 250 gbp for online payments. Total amount of 200 gbp meets my limit.

Slide 13: 

Cardholder Card Issuing SMART E-Switch Kelly can always view her user limits and prohibitions for each transaction type by looking at the summary page (Manage Card Account). After making an online payment of 200 gbp, her new limit is 50 gbp. My limit should now show 50 gbp.

Slide 14: 

Joe the Hacker Online Merchant Merchant Bank Card Issuing The following shows what happens when Joe the Hacker does an online payment for 300 gbp with an online merchant using Kelly’s card details. Joe the Hacker sends Kelly’s card details to the online merchant. The transaction amount is for 300 gbp. Online Merchants sends a card authorization request to its merchant (acquiring bank). Merchant Bank sends the card authorization request to Kelly’s Issuing Bank. SMART E-Switch System tags the card authorization request as type : internet, mail order / telephone order. SMART E-Switch System matches the transaction with Kelly’s user limit for this type of transaction. Since Kelly’s user limit for this type of transaction is for the amount of 50 gbp, SMART E-Switch then ‘rejects’ this card authorization request. SMART E-Switch advises Issuing Bank to reject the card authorization request. Issuing Bank sends the ‘authorization declined’ response to the Merchant Bank Merchant Bank sends the ‘declined authorization’ response to the Online Merchant Online Merchant sends a ‘payment declined’ message to Joe the Hacker. 1 2 3 4 5 6 SMART E-Switch It got rejected ! Card is probably protected by SMART E-Switch ! GRRRR....

Slide 15: 

Online Merchant Merchant Bank Card Issuing The following shows what happens when Joe the Hacker does an online payment for 300 gbp with an online merchant using Kelly’s card details. 7. SMART E-Switch sends a notification to Kelly of Joe the Hacker’s use of her card details (which was rejected). Kelly can choose to be notified via SMS or email. 1 2 3 4 5 6 SMART E-Switch 7 Glad my card is protected ! Joe the Hacker It got rejected ! Card is probably protected by SMART E-Switch ! GRRRR....

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ATM Machine Host Bank Card Issuing The following shows what happens when Larry the Card Skimmer uses a clone of Kelly’s card to do an ATM transaction. Larry the Card Skimmer uses a clone of Kelly’s card to withdraw money from an ATM machine. ATM Machine sends a card authorization request to host bank (bank that operates the ATM machine. Host Bank sends the card authorization request to Kelly’s Issuing Bank. SMART E-Switch System tags the card authorization request as type : local ATM transaction and matches the transaction with Kelly’s user limit for this type of transaction. Since Kelly’s user limit for this type of transaction is 0 (she locked her card account against local ATM transactions), SMART E-Switch then ‘rejects’ this card authorization request. SMART E-Switch advises Issuing Bank to reject the card authorization request. Issuing Bank sends the ‘authorization declined’ response to the Host Bank Host Bank sends the ‘declined authorization’ response to the ATM Machine ATM machine sends a ‘authorization declined’ message to Larry the Card Skimmer. 1 2 3 4 5 6 SMART E-Switch It got rejected ! Card is probably protected by SMART E-Switch ! GRRRR....

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ATM Machine Host Bank Card Issuing The following shows what happens when Larry the Card Skimmer uses a clone of Kelly’s card to do an ATM transaction. 7. SMART E-Switch sends a notification to Kelly of Larry the Card Skimmer’s use of her card details (which was rejected). Kelly can choose to be notified via SMS or email. 1 2 3 4 5 6 SMART E-Switch 7 It got rejected ! Card is probably protected by SMART E-Switch ! GRRRR.... Glad my card is protected !