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5/12/2018 EMV Authorization Host Overview v1.0 - slidepdf.com
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SPECTRA Technologies Holdings Co. Ltd.
1
SPECTRA EMV Authorization Host
Over decades, vastly expanded uses of card payment such as magnetic swipe cards and smart
cards have already dominated the payment methods. While EMV chip card, with greatly
enhanced security, will also definitively become the widest-use payment media in market in
the short future.
When faced to the continuously rising and demanding usage of card payments, doubtlessly, as
an acquirer organization, the following concerns strongly urge for a comprehensive solution:
1. Security (fraud prevention)
2. Card Transaction Performance (time to authorize a card and to complete a transaction)
3. Cost (both implementation cost and on-going cost)
To take care all of the concerns raised, we come to a qualified Authorization Host.
What is Authorization Host
Authorization is the process by which card issuers, usually VISA, MASTERCARD, JCB, DINNERS,
and AMEX, either approve, refer (directing the agency to contact specified Card Authorization
Organization for further instructions, e.g. Onus Cards) or deny request to accept or reject
transactions. Approval is based on the validation of the account number and expiration date or
some authorization schemes like hot card list to verify that a cardholder’s account is activated and
the card is secure to be trusted.
Authorization Host is exactly a physical server which handles the tasks of the authorization
process mentioned above, with connection to the point-of-sales devices and the authorization
issuers (PSTN or TCP/IP) in the middle.
The authorization requests come from point-of-sales devices when sales transactions are made.
The host then decides what the appropriate authorization issuers should be routed to for
authorization (if it’s a Stand-In request, the host will validate the card based on the pre-loaded
hot card list in the host database), and finally either approves or denies the requests for the
transactions.
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SPECTRA Technologies Holdings Co. Ltd.
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SPECTRA EMV Authorization Host
SPECTRA EMV Authorization Host, our card authorization solution product, with EMV standards
merged, provides a secure and high-speed management for card transaction authorization.
The online authorization process completes an authorization request just in a matter of
seconds. The Host also supports various interfaces like handling OnUS Cards by just
plugging-in a related customized software module. The solution implementation is quick and
the host management is easy.
Physical Network Structure:
EMV Authorization Host Solution
(1) EMV Authorization Host Application Server
A server grade PC, which is installed in Acquirer site and connected to the network. The functions of theEMV Authorization Host include card authorization services, database, communication services, etc.
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SPECTRA Technologies Holdings Co. Ltd.
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(2) Network Access Controller (NAC)
Networking device, which is installed in Acquirer site and connected to the network. The NAC
provided Multi-protocol POS Terminal dial-up access.
VAP, MIP , JIP S…
Authorization lines for each credit card international organization, which are installed in
Acquirer site already.
PSTN/ GPRS
Fixed line or mobile public telephone network, which is using for POS Terminal dial-up access.
Issuer Networks
A secured data network provided from Issuer for the data exchange.
Interior Software Modular Architecture:
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SPECTRA Technologies Holdings Co. Ltd.
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Communication P rotocol
TCP/IP and x.25 both supported by EMV Authorization Host for data exchange to/from POS
Terminal and Issuer Network.
Core Modular
(1) POS Modular
Handle requests & responses from/to POS Terminal.
(2) Merchant Inspector
Validate the merchant & terminal information.
(3) Transaction Data
Transaction logs, keep track all the transaction data.
(4) Settlement Data
Settlement logs, keep track all the settled transaction data.
(5) Routing Modular
Depends on the card type to route the transaction to the corresponding issuer.
(6) Timeout Modular
A control of timeout in forward message transmission is disclosed, by which a continuous
network transmission delay can be adaptively handled.
Interface Modular
Interface between EMV Authorization Host and each Issuers. EMV Authorization Host
supported 5 major credit card international organizations such as VISA, MasterCard, JCB
Card, AMEX and Diners Club. System also provided a tailor-made modular (OnUS) for the
Acquirer to handle their own cards and a modular (StandIn) for handle the offline
authorization.
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SPECTRA Technologies Holdings Co. Ltd.
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Authorization Flow Description:
Credit Card Authorization Process:
(1) Card information is captured from the card (magnetic stripe, smart card or EMV chip card)
through a point-of-sale terminal, or by data entering the card and payment information
into the agency's payment device (e.g., PC-based software). Information from the card
(e.g., card type, account number, expiration date) is combined with information about the
transaction (e.g., dollar amount) to create the authorization request.
(2) The agency's payment device connects to SPECTRA EMV Authorization Host and transmits
the authorization request via one of the five communications methods (i.e., dial-up, leased
line, host-to-host, ISDN or wireless).
(3) SPECTRA EMV Authorization Host recognizes the authorization request as being for a Visa,
MasterCard, JCB, American Express, Diners or OnUS card. The request is transmitted to
the appropriate association, which, in turn, routes the request to the member bank which
issued the card.
(4) The card issuer (Issuing bank) verifies that the cardholder's account is valid, and that the
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SPECTRA Technologies Holdings Co. Ltd.
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amount of the transaction is less than their remaining credit limit (if such a credit limit
exists). The approval (with authorization number), referral or declination is transmitted
directly back to SPECTRA EMV Authorization Host.
(5) SPECTRA EMV Authorization Host transmits the response to the agency's payment device.
(6) The cardholder is made aware if the transaction is approved or denied. If approved, a
confirmation number (which can be the authorization number) is typically provided to the
cardholder.
From the cardholder/agency perspective, this process is seamless, taking only seconds for
completion.
Our long history of electronic transaction management with high reputation in the industry, as
well as our rich development experience reward our customers with a reliable and low-cost
system.
By minimizing losses of frauds (charge back cases) and enabling our customers to benefit from
the low operation cost of electronic transaction authorization, SPECTRA EMV Authorization Host
remains the best choice for our customers. Functionality
Host Processor Authorization. In normal situation, our Host routes the transactions to
appropriate issuing association for authorization decisions. If the connection is failed or the remote
issuing association is unavailable, our Host can stand in and authorize transactions using limits
and other criteria defined by the acquiring financial institution previously.
Stand-in Authorization. In Stand-in mode, our Host authorizes transactions on behalf of the
unavailable issuing association for the moment. Before authorizing a transaction, our Host reviews
the preloaded cardholder file (hot card list) and specified limits (floor limits), and transaction data
check options to approve or deny the transaction according to the agreed specifications provided
by our acquiring customers. Without requiring a full-time online linking to acquirer host system,
our Host creates and sends a batch-posting file at the end of each settlement day for reference.
Hot Card/ Card Activation service. Web-based Interface is provided to users to import hot cardlists and floor limit definitions. Also specific card activation is allowed by the interface. Hot card
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and floor limit guarding helps protecting cardholders and our customers’ financial institution from
potential fraudulent activity. The hot card list and the floor limit definition can also be exported for
reference.
Monitoring, Queries and Reports. Web-based interface is provided to users for monitoring
approved or denied transactions and approval history, responses from approval associations, hot
card and floor limit definition details and management history and users accounts and privileges.
Queries about all the type of data mentioned can be made through interfaces. Analytical reports
and exceptional reports are also provided.
Administration and Housekeeping. Web-based Interface is provided to users for system
configuration and user accounts and related privileges management. Privilege can be set to restrict
users’ activities in different areas like transaction approval history monitoring and hot card
management. Our System provides secondary backup host and disk mirroring for database backup
to minimize the down time for any host down cases.
Communication Interface Support. For the low level data communication protocol, our Host
supports TCP/IP and X.25. As for the authorization association communication interface, VISA,
MasterCard, JCB, American Express and Dinners are the basic modules. Extra modules can be
plugged-in like OnUS cards according to the acquiring bank specification given.
System Capacity
Capacity:
@EMVHost may process up to 130* transactions in the same time.
Performance
@EMVHost may process up to 33* transactions per second.
*Note: The number of transaction varies by processing type
Business Value and Benefit of Authorization Host Service Reduce Processing Costs. Single-point connection to our Host enables customers to consolidate
all of card-based authorization processing on an integrated platform, reducing telecommunication
costs, eliminating redundant functionality, and streamlining back-office procedures, resulting inbetter controlling, monitoring and management of authorization process.
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Provide Stand-In and Hot Card Checking. Stand-In authorization is allowed. With preloaded
hot card and floor limit checking, it reduces the workload of acquiring bank (for OnUS cards)
authorization processing system. The processed (approved or rejected) transactions can be
redirected to acquiring bank at the end of each day for reference. Moreover, the stand-in host is
also suitable for those merchants which daily transactions are huge, so that the workload of
acquiring backend system in the business peak hours is alleviated. Serve Around the Clock. Serve cardholders wherever and whenever they transact business.
Strong processing response time enhance cardholder satisfaction.
Low Cost. We reward our customers with a low implementation cost.
Proven Service. Our long history of electronic transaction management with high reputation in
the industry and our experienced technical support and customer service team ensure our
customers to achieve any goals on card authorization solution.
Minimum Hardware & Software Requirement EMV Authorization Host Server
Hardware - Server Grade PC (Intel Pentium 4 CPU or above)- 2GB Ram (Main Memory)- 160GB Hard Disk
Software - Redhat Linux AS 4 (Operating System)- Oracle 10g Database
Network Access Controller (NAC)
- Multi-protocol POS dial access support
- Providing a full suite of uplink connections to support POS hosts requiring support of X.25 or
TCP/IP protocols
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