Engr. Abdul-Rahman MahmoodMS, PMP, MCP, QMR(ISO9001:2000)
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VC++, VB, ASP
1LINK & MNET
Teaching skills, Project Management
Course portal http://alphapeeler.sf.net/me
Class Policies
Class Policies
By Engr. Abdul Rahman Mahmood
Overview of 1LINK
Inter Bank Switch
About 1LINK 1LINK is shared ATM Switch operating in Pakistan since 1999.
Currently 1-LINK is the Largest Shared ATM Switch operating in
Pakistan.
The SWITCH is powered by TPS SWITCH Application “PHOENIX”
1LINK Technology is currently being looked after 1LINK (Guarantee) Ltd.
1LINK (Guarantee) Limited is a consortium of major banks that own and
operate the largest representative shared financial services network of
Pakistan.
The synergy of financial institutions working together for a common goal
has steadily increased the strength and services of 1LINK.
Switch connectivity with VISA Debit
About 1LINK 1LINK has become widely acknowledged brand with an increasing
number of member banks.
TPS is powering the Switch Technology with its Innovative /
Creativity.
The stability and reliability of Phoenix as the Switching Technology
used has resulted in a Strengthen customer driven product.
Banks offering the E-Banking facility are more comfortable with
1LINK as the shared switch than any other.
This is because of the greater value added privileged received by the
banks on 1-LINK than at any other share ATM Switch.
1LINK Statistical Data Member Banks : 22
Total ATM in Pakistan : 1804
Total cities reached : 155
Average Monthly TXN : PKR 1,925,77(as of June 2007)
Average Monthly Amount : PKR 1,925,770Transacted (as of 30/8/07)
1LINK Statistical DataMember Banks
1LINK 24
MNET 9
Financial transactions
1LINK on 1LINK 998,705
MNET on 1LINK 280,785
1LINK on MNET 185,451
1LINK IBFT 5,869
Visa TXN (Local) 19,485
Visa TXN (International) 5,292
Non Financial transactions
1LINK on 1LINK 299 452
1LINK on 1LINK 299, 452
MNET on 1LINK 74,645
1LINK on MNET 56,086
Withdrawal Volume
1LINK on 1LINK PKR 5,275,283,718
MNET on 1LINK PKR 1,300,883,900
1LINK on MNET PKR 787,283,500
1LINK IBFT PKR 296,686,985
VISA Volume (Local) PKR 34,696,009
VISA Volume (International) PKR 25,149,120
Total Transaction 1,925,770
Total Volume PKR 7,660,138,103
1LINK Architecture & Services
Architecture – General Overview
Service Offering Over 1LINKTRANSACTIONS
WITHDRAWAL
PURCHASE
BALANCE INQUIRY
Internet Bank Fund Transfer (ATM / POS)
Utility Bill Payment (ATM / POS)
OTHER SERVICES VISA Debit Card Issuance Facility. (Base I)
VISA Card Acquiring Facility. (SMS)
VISA Settlement (BASE-I / SMS)
VISA Settlement features (Chargeback, Representment etc).
RECONCILIATION Reconciliation with MNET.
Reconciliation with 1LINK Member Banks.
Reconciliation with All Stakeholders.
Services On 1LINK
$$$
$$$
UBPS
VISA
IBFT
???
???
VISA Debit
Utility Bill Payments
(UBPS)
VISA
UBPS
VISA
UBPS
$$$
IBFT
IBFT
VISA
$$$
???
IBFT
UBPS
= VISA Debit
= Cash Withdrawal
= Balance Inquiry
= Inter-Bank
Funds Transfer
= Utility Bill Payments
1LINK Operations
1LINK Operations As a Shared ATM Switch
Cutover Messages to ensure a business Cycle.
Transaction Routing on the basis of relevant fields.
Settlement proceeds for Transaction Count and Amount Verification.
Reporting for settlement.
Exports production for Settlement.
Settlement Cutover Message Cutover Messages are placed to ensure the business cycle date.
1LINK generates a cutover message which sent to all member banks so that they are
synchronized with the SETTLEMENT DATE.
1LINK rejects a transaction initiated from member banks if the settlement date is not
matched.
Settlement date is checked from the field of the Settlement Date (4 Digits – MMDD) in
the transaction messages.
The business day cycle is kept one day ahead so that the same can be reconciled the next
working day.
No cutover message generated on weekly holidays (Sundays) and other banking holidays.
Issuer / Acquirer When the customer of Bank A uses the ATM of Bank B, that makes Bank A the Issuing
Bank (it’s card is being used) and Bank B is the Acquiring bank (it’s ATM is being used).
Fee is Charged by the Acquirer Bank on per transactions basis from the Issuer Bank.
Settlement Period is the mutually agreed between the 1 Link Member Banks where all banks match their transactions with 1 Link Switch report. A fixed fee for the settlement of transaction is imposed on the issuing bank.
Cut-off is the time at which one settlement period ends. 1 Link Switch – 0600 hrs *
MNET Switch – 0000 hrs **
*Settlements based on Switch Settlement dates. Tran settlement which are due on holidays are preformed the next working day (Sundays or any public holidays)
**MNET settlement based upon calendar dates.
Issuer / Acquirer – At a Glance
Issuer Switch
…..
…..
Acquirer Switch
Issuer Host
Acquirer ATM
Acquirer Institution ID
Transactions of any card that is not local to a Bank is sent to 1LINK, with an ID Code
specifying the Bank on which the Card has been acquired.
A Bank may have issued cards with multiple IMD’s/BIN’s, but Acquirer Institution ID
Code will be unique.
ACQ Inst ID code is of 11 digit with first 6 digits are unique to one of the IMD of a bank
and the last 5 digits are zeros. (46495100000)
1LINK decides the routing on the basis of Acquirer Institution ID Code and IMD (first 6
digits of Card Number).
In transactions request Card IMD is used to send the transaction to Issuer Bank
In transaction response ACQ Inst ID Code is used to identify the destination.
Merchant Type Merchant Types are also used to bifurcate between the transactions between
1LINK Only, MNET and VISA transactions.
The merchant Type field sets the transactions to fall in the settlement
requirements.
For Instance
Merchant Type for 1LINK = 0003
Merchant Type for MNET = 0004
Merchant Type for VISA = 0007
1LINK Settlement Procedure
Settlement Procedure
1LINK performs settlement of transactions with all the
member banks and connecting switches.
Local Settlement
Local Withdrawal and Balance Inquiry
Local POS Settlement
Local IBFT Settlement
MNET Settlement
VISA Settlement
Local Settlement - Local Withdrawal & Balance Inquiry
Local Settlement refers to the Settlement between 1LINK Acquirer and 1LINK Issuer
Bank.
A Report file is generated on the settlement date basis, to mark out the transactions
among 1LINK members.
This report also includes the fee amount that is applicable on the respective transactions.
The Fee amount currently used by 1LINK to 1LINK is constant. That is PKR 15/- per
Withdrawal while no fee is imposed on Balance Inquiry.
A Settlement export File is also provided. This file is used by ABN AMRO to balance the
accounts of all the respective member banks.
The exceptional condition of late reversals are also handled.
Local POS & IBFT Settlement Local IBFT Settlement is performed in the same way as the above mentioned local
settlement.
Local IBFT settlement includes both the credit amount and the debit amount which are
always balanced.
Fixed fee of each IBFT transactions is also imposed as per specification of 1LINK.
Local POS Settlement involves the reporting of all purchase transactions and charging
each member bank with the amount used by them.
A fixed fee is also imposed.
Settlement is done on the basis of both Report file (generated on Settlement Date) and
the raw export (generated on the settlement date).
Local SettlementBank A Customer uses ATM of Bank B
Bank A Books
•Dt Customer AC Amt +15
•Cr SC Issuer Amt +15
Bank B Books
•Dt SD Acquirer Amt + 4*
•Cr ATM Cash
•Cr Bank B Commission +11
* 1LINK Commission 2
ABN Settlement fee 2
MNET Settlement ABN AMRO maintains one shadow account of the MNET
Switch. The actual settlement takes place at Muslim
Commercial Bank
Each calendar day is considered the settlement day i.e.
0000 hrs to 23.59 hrs
The Cut-off time is 0000 hrs
MNET Settlement MNET Provides the details of the settled transaction through a raw file.
This raw file is exported in the 1LINK System and are used to mark the status against each
transactions reported by MNET.
Exception conditions that arise are handled through the settlement procedure between
1LINK and MNET.
The document for Settlement Procedure will be provided for reference.
Different reports and export on the basis of settlement performed (on calendar date) are
generated from 1LINK which is used by 1LINK staff to settle the transactions.
Other Operational Functions
Transaction Dispute Handling Handling of Late Reversal
Status confirmation from the Acquirer – SWITCH
– Issuer.
If a dispute is raised the same is forwarded to ABN
AMRO (being settlement banks of 1LINK) which
clears the claim within 20 days of the initial
intimation.
Channel and Transaction Monitoring
Status monitoring of All Member banks, MNET and VISA.
Transactions Monitoring.
Timely Backups
Transaction Certification of Upcoming member banks.
Service provision to ensure 24 by 7 smooth operations of
1LINK.
Incorporation of New Member Banks
Channel and Transaction Monitoring 1LINK has developed standard Project Management Guide to facilitate Member
Bank on 1LINK Project.
1LINK Project is divided into following Four Phases.
Phase-I : Membership
Phase-II : Document Delivery
Phase-III : Certification
Phase-IV: Cutover
Critical Tasks have been mentioned separately to highlight there significance &
impact on Project timelines.
Project Management Guide is followed by Member Bank till the completion of
Project.
Phase-I : Membership ILINK Project starts with the discussion between 1LINK and Member Banks.
1LINK will submit formal proposal on the request of Member Bank.
1LINK have standard proposal for all Member Banks.
Member Bank has to provide Letter of Intent to express there willingness to join 1LINK Service.
Letter of Intent must be signed by authorized person and provided on Official Letterhead
1LINK has provided ‘Specimen Letter of Intent’ for the convenience of Member Bank.
The main ‘1LINK Agreement’ is signed among 1LINK founder member banks.
Member Bank has to sign the ‘Participation Memorandum’ of the main agreement.
1LINK will officially communicate to all Member Banks, Technology Providers and Settlement Bank on the induction of new ILINK Member Bank.
Phase-II :Document Delivery ‘1LINK Data Element Definitions Manual’ provides detailed definition of all ISO-8583 - 1987 Data
Elements used by 1LINK
‘1LINK Message Definition & Transaction Flow’ document describes all possible ISO 8583 – 1987
Message Types supported by 1LINK & Transaction Flow between 1LINK and co-networks.
‘1LINK Message Format’ document describes all the ISBO 8583 – 1987 Message Formats used by
1LINK.
‘1LINK Technical Standards’ document provides a set of technical standards related to 1LINK
operations and its interaction with Member Banks.
‘1LINK Certification Script’ documents contains the test scripts needed for full certification with
1LINK.
‘1LINK ATM Screens’ document provides the Format of Mandatory ATM Screens to be displayed on
Member Bank’s ATM.
‘1LINK IMD Listing’ document provides the list of IMD of existing 1LINK Member Banks.
Phase-II :Document Delivery ‘1LINK Transaction Charges’ document provides the details of charges/distribution on
ILINK transaction
‘1LINK Timeout Parameters’ document provides standard guidelines for 1LINK Timeout
setting to be configured on member bank ATM Controller and Banking Host System.
‘1LINK Branding Guidelines’ document provides standard guidelines for 1LINK branding
and use of 1LINK logo.
‘1LINK Account Opening Guidelines’ document provides standard guidelines for opening
the Nostro Account at ABN AMRO(1LINK Settlement Bank).
1LINK will provide standard set of forms to member bank. It is mandatory to send the
forms for the smooth certification and Production Cutover at 1LINK.
Phase III - Certification ‘1LINK Network Connectivity Form’ is required to be submitted by member bank to make
necessary network connectivity from the bank to 1LINK technology Site.
‘1LINK IMD Update letter’ is required to be submitted by Member Bank Business Contacts. The IMD (Interchange Member Descriptor) will be updated on 1LINK network.
1LINK has provided ‘Specimen IMD Update Letter’ for the convenience of Member Bank.
1LINK will send a memorandum to all the existing member banks about the induction of new member bank and to update the IMD listing at their Banking Systems.
1LINK will configure the network between member bank and its technology site on the basis of the ‘Network Connectivity Form’ submitted
Member bank will send their Card Design to 1LINK. It is mandatory by 1LINK that the Card Design must be in compliance with the ‘1LINK Branding Guidelines’
1LINK will confirm that the Card Design submitted by member bank is in compliance with 1LINK Branding Guidelines.
Member Bank has to acknowledge their readiness by providing ‘Certification Readiness Form.’ and readiness letter (Official Letter-head).
Phase III - Certification The filled ‘Certification Readiness Form’ can be submitted to 1LINK via email.
1LINK will confirm the Certification Slot after reviewing the readiness status of Member
Bank and availability of resource at 1LINK.
Pre-Certification Meeting among 1LINK, Member Bank and respective Technology
Providers will be arranged by 1LINK before the start of certification.
1LINK will certify Member Bank as per the specifications provided by 1LINK.
Standard ‘Daily Certification Activity Report’ will be published by 1LINK at the day end of
certification.
1LINK will send the certification report on daily basis to monitor the status of
certification and to ensure that the certification is completed within the time-slot.
The ‘Final Certification Report’ will be published by 1LINK after the completion of
certification slot.
Phase IV - Deployment 1LINK will invite the Operations Team of member bank to attend 1LINK
operations meeting in which the Standard Operating Procedures will be
communicated to member bank.
Member Bank has to send the ‘1LINK HSM Key Exchange Form’ for necessary
update at 1LINK.
‘1LINK Contact Directory Form’ is required to be filled by authorized bank
representative to designate its business, technology and operations contacts for
1LINK.
Member Bank has to provide the Contact Details for Daily eStatement.
Member Bank has to provide the Contact Details for Transaction Reports.
Member Bank has to provide the 1LINK ATM Listing form in the specified
format.
Member Bank has to confirm their readiness for cutover by submitting ‘Cutover
Readiness Form’.
Phase IV - Deployment 1LINK will arrange a Branding Meeting with the Marketing and Business
Department of the New Member Bank
1LINK will confirm the Cutover Date after reviewing the readiness status of
Member Bank and availability of resource at 1LINK.
1LINK will arrange a HSM key exchange activity before the schedule of
production cutover.
1LINK will perform necessary activity to perform production cutover for the
Member Bank.
1LINK and Member Bank have to discuss the mutually agreed launch date for
the 1LINK service.
1LINK Branding Guidelines should be followed in the media launch of 1LINK
Service.
Project Completion Meeting will be arranged by 1LINK to officially close the
project.
THANK YOU