NFC Capabilities for Mobile Authentication

<Product feature in roadmap> 

We are willing to provide cardholders with one more way to quickly and conveniently authenticate themselves for online payments and banking operations. Now they can simply tap a card to their smartphone. 

This feature will be a part of WAY4 Mobile Authentication Application. Issuers use this solution to comply with 3DS requirements for strong customer authentication. In addition to fingerprint scanning, face and voice recognition, OTP and passcodes, this mobile application will support the NFC-based authentication method.  

We suggest the two main use cases for NFC-based authentication: 

  • Card-presence confirmation for e-commerce 

    Issuers may want to “double” security for certain e-commerce operations – e.g. very expensive purchases. NFC can serve as the second step in mobile authentication. The transaction stops being “card-not-present” and becomes even less risky. 

    During checkout the buyer receives a mobile push notification, opens WAY4 app and follows the instructions. Biometric recognition or OTP/ passcode entry go first. Tapping the card to the smartphone completes authentication. The user sees confirmation on the phone screen and on the checkout page. 

  • Enrollment of cards in the app

    To start using the mobile authentication app for online shopping, users should first enroll their card in their app. Issuers can now use an NFC tap and a special e-commerce PIN for Strong Customer Authentication.

    The NFC tap is used to transfer card details to the app. Alternatively, users can fill in the details manually.

    After that, users enter an e-commerce PIN to complete the enrollment process. An e-commerce PIN is a static security value which issuers can configure in a card's chip when it is issued on WAY4. Cardholders can receive this PIN from their issuer in the same secure way as a normal PIN. 

    The e-commerce PIN can also serve as a mobile authentication method, along with biometrics, OTP, passcodes and NFC.

    Companies can use NFC to authenticate customers and enroll their cards in any mobile application (e.g. banking apps).

To learn more about the WAY4 Mobile Authentication app, please read this piece of news, consult your BRM or request the brochure on our website.

Testing Framework Q1 2019 Update

<Enhancements to the existing product>

The tool comes with the respective services   

With the Testing Framework tool, you can create and run automation tests of WAY4 components. It means a more reliable process of continuous integration and faster delivery of new features to the production system.

The new release comes with several enhancements of Testing Framework.

Improved Testing of ISO8583 messages

New Protocols Supported

WAY4 users can now automate testing of Mastercard, Visa and domestic schemes protocols, and more specific protocols, such as OpenWay H2H and OpenWay POS. You can also test your own dialect of the ISO8583 messages by adding it to the test project.  

New Messages Comparator

The purpose of testing ISO8583 messages varies case by case. There are now three different ways to compare the test message with the expected outcome:

  1. Compare all fields (by default)

    By default, the system checks the correctness of the entire message and reports the errors below:

    • Divergence of the field value – for every field 

    • Field(s) missing in the test results 

    • Presence of unexpected field(s) in the resulting message

  2. Compare selected fields

    This option focuses on the fields of your choice, their presence and values in the resulting messages. For example, you can track discrepancies for the Field 039 (Response Code) only.

  3. No comparison

    Use this mode if the message content per se does not matter. For example, you are creating a test script but do not know the field values yet. An error would mean the complete absence of the expected message. 

EMV Transaction Testing

It is now easier to prepare scripts for EMV transaction testing and test the operations which involve cryptographic checks. We’ve enabled the generation of chip data within Testing Framework. If the system tester enters the card, terminal and keys parameters, the tool automatically calculates the DE55 security field value.  

New Design of Reports

It is now easier to find discrepancies in the reports resulting from ISO8583 message testing. The reports show all inward and outward messages chronologically and highlight all discrepancies graphically.

Sample report on the test results of ISO8583 message

What’s else?

With Testing Framework, you can now automate regression testing of the following system components:

  • Inward SOA UFX, SOAP, REST requests from any external system to WAY4 

  • WAY ATM controller: the WAY4 system emulates a request from the ATM to the ATM controller and checks the response content. Testing Framework now supports the NDC protocol. The DCC protocol will follow shortly. 

  • WAY4 3-D Secure ACS: the tool emulates a 3-D Secure authentication process on the issuer’s side. Testing Framework sends/receives prepared pairs ofVEReq/VERes, PAReq/PARes messages. Then it sends an ISO8583 message to the payment scheme.

Example of message sequence for testing 3-D Secure transactions

Datamart Q1 2019 Update

<Enhancements to the existing product>

Grouping For Ad-Hoc Reporting

Users can now group the entries loaded into WAY4 Datamart over a period of time when gathering information ‘on the fly’ for ad-hoc reports. The data structure of your existing reports remains intact. 
An example would be grouping all the entries related to the annual card fee or interest accrual on loans. After a user creates and applies the selection rule, a special screen shows the newly grouped data. One entry may be a part of as many groups as needed.

Ancillary Service Charges

From April 2019, Mastercard issuers are mandated to include ancillary services charges on cardholder statements. To support your compliance, we’ve introduced a new table to store these data.

Ancillary services charges data concerns the passenger payments processed by airlines, railways and travel agencies. Baggage allowance, frequent flyer number, wi-fi or in-flight entertainment fees among others can be passed from acquirers to issuers in the new Mastercard message field. 

FX Rates Data Loading

Issuers and acquirers can now load extended information about FX rates. This includes a special table with all the FX rates that were valid within a certain banking date. When generating a report for a transaction in a foreign currency, WAY4 will apply the respective FX rate.  

End-of-Day Data Loading

You can load end-of-day data more flexibly. We have split ‘End Day Facts’ into six new modules: ‘FX Rates', 'Transactions', 'Card Production Lifecycle', 'Exception List', 'Accounting Dimensions and Facts' and 'Debts and Reserves'. Each can be loaded according to its own schedule or simply switched off.   

Authorizations Data Loading

To improve the flexibility of loading data, we have split the ‘Authorizations’ module into smaller ones: 'Issuer Authorizations', 'Acquirer Authorizations', 'Acquirer Fraud', and 'Comms Log'. The “Acquirer Fraud” module loads the fraudulent transaction notifications received from payment schemes – TC40 data from Visa and SAFE data from Mastercard.  

The ‘Comms Log’ module stores unsorted inward and outward technical messages in the ISO format. You can now load them separately from other business data. If you do not need the ISO messages, simply switch off the module to lighten the load work.      

Interchange Fees Data Loading

A new module in WAY4 Datamart helps issuers and acquirers track the progress of interchange fee clearing and settlement. You can load documents sent to and received from the international payment schemes. Entries include the payment scheme name, file type, incoming or outgoing channel and other data.

WAY4 Manager Support

Now every reporting feature of WAY4 Datamart is available through WAY4 Manager since the system version 03.48.30. This applies both to the issuing and acquiring side, to those who are already using WAY4 Manager and those migrating from DB Manager to WAY4 Manager. 

 

Mastercard Dispute Management Compliance

From July 2019, MasterCom Claim Manager (MCCM), a new dispute resolution platform from Mastercard, will be the only way to manage Mastercard disputes. WAY4 is now fully integrated with MCCM. 

WAY4 can process claims automatically, via the new online interface to MCCM (called Mastercom API). Alternatively, your dispute officers can manually enter the dispute data on the portal. We have added this functionality for both issuers and acquirers.

These new requirements are similar to those introduced by Visa a year ago, with its VROL platform. WAY4 is also compatible with VROL.

Mastercard Dispute Notifications Loading

<Enhancements to the existing product>

To ensure correct accounting, WAY4 now receives Mastercard notifications about manually created dispute events in MCCM.

How it works

After your dispute officer creates a new document on the MCCM web-portal, Mastercard sends a related notification (so called “TQR4 report”) to your processing system. WAY4 receives this notification among other clearing files and creates a corresponding financial document in the card database to ensure correct accounting.    

The WAY4 system can process the notifications about the following dispute events: 

  • Retrieval Requests 

  • Retrieval Request Fulfillments 

  • First Chargebacks 

  • Second Presentments 

  • Arbitration Chargebacks 

  • Fee Collections 

MasterCom API

<New set of product options, separately licensed>

We have supported MasterCom API, an online Mastercard interface, to reduce the need for manual dispute processing. The WAY4 Dispute Assistant module can now interact directly with MCCM, and data exchange happens with minimum latency. WAY4 aggregates dispute information and presents it to your staff in real-time. 

With the MasterCom API, issuers automate most of the dispute stages, namely creating claims and upload related documents, raising Retrieval Requests, First Chargebacks and Arbitration Chargebacks, and submitting Case Filings. In the same way, acquirers can automatically send Fulfillment and Second Presentments, submit Case Filing and upload relevant documents.  

Integration with Instant Payment Schemes

<New set of product options, separately licensed>

WAY4 is now equipped to connect financial institutions to external instant payments. 

OpenWay has developed an interface to a national end-to-end instant payment system in an Eastern European country. Through this interface, WAY4 can access the instant payment system and process account-to-account money transfers between clients of different banks by phone number or e-mail. Cardholders can also send money in real-time via messengers and social media. The credit transfers can be processed within several seconds, and the funds become instantly available for a recipient. Instant payments on WAY4 are available 24/7. 

The new interface to the instant payment scheme is based on the ISO20022 protocol. We can make WAY4 compatible with instant payment systems in any other region. If you would like an estimation, please consult your BRM.

Sample architecture of the connection to the domestic / regional instant payment scheme on WAY4

3-D Secure v2

<New set of product options, separately licensed>

WAY4 now supports the latest authentication protocol for e-commerce transactions: 3-D Secure v2, also known as EMV 3DS.  The new protocol fights fraud and makes the liability shift work in your favor. What’s more, 3DS v2 provides a frictionless checkout experience for online buyers. It results in fewer abandoned shopping carts and higher revenues for those who process online payments. 

EMVCo has certified both WAY4 modules: WAY4 3-D Secure ACS for issuers and 3-D Secure MPI/3-D Secure Server for acquirers. The new functionality supports the requirements of modern e-commerce industry:

  • New device types, such as smartphones, tablets and smart TV 

  • More data exchanged in the background for seamless security – 150 data fields vs just 15 in the older version

  • New authentication methods, including biometrics

  • Modern payment technologies and instruments, e.g. tokenization, wallets, in-app payments

  • Risk-based assessment that allows buyers to completely skip the “annoying” authentication challenges in certain cases

If you are using WAY4 3-D Secure v1, we offer a licensed upgrade to WAY4 3-D Secure v2. After the upgrade both protocols can co-exist in your payment processing until IPS stops processing the old version of protocol.

WAY4 3-D Secure v2 also works as a stand-alone solution. It can integrate via APIs into any 3rd party e-commerce infrastructure.

Instant Settlement within WAY4

<New set of product options, separately licensed>

Customers can now launch new types of real-time payments on WAY4 as we have enabled instant posting. When users accept or initiate money transfers, their accounts are immediately credited or debited. WAY4 also calculates tariffs and charges transactional fees without delay. 

The new functionality benefits all parties:

  • New business models for you to seize. With instant posting you can target multiple customer segments. WAY4 supports person-to-person, person-to-business, person-to-government payments and mobile transfers. For example, friends can split a bill in a restaurant right after dinner. Cardholders are able to pay fines and taxes immediately upon receipt. Service providers – plumber, babysitter or gardener – can be paid once the service is delivered.

  • Superb experience for credit card users. For instance, credit card holders will not be charged late fees even if they pay on the last day of the grace period. If the issuer blocked a credit card due to delinquency, WAY4 can unblock it automatically as soon as the customer discharges their debt. 

  • Instant settlement for merchants. Acquirers can guarantee their merchants immediate settlement, even for new transaction types, e.g. QR-payments. This functionality can particularly benefit small merchants and individual entrepreneurs who have a short production cycle and shortage of funds.

New POS Protocol for Expansion in Oceania, Africa and Asia

<New set of product options, separately licensed>

WAY4 now supports the AS2805 POS authorization protocol for electronic funds transfers and payments. This opens doors to new acquiring opportunities in Australia and New Zealand, where this protocol is widely used. Other applicable regions are South Africa and Southeast Asia.

Native Interconnection Hub

<New set of product options, separately licensed>

OpenWay has developed a new solution for seamless migration to a new switching system. With WAY4 Native Interconnection Hub you can avoid integration between the old and new processing infrastructure. In most cases there is no need to involve the legacy system vendor. You can execute large-scale migration projects at your own speed and avoid unnecessary costs. This solution also helps financial institutions arrange an interrupted data flow between switching systems from several vendors. If one system is undergoing changes, it will not impact the others.

WAY4 Native Interconnection Hub routes transactions between the IPS and multiple processing systems. You can configure routing rules that depend on the card, operation and other parameters. The hub supports a variety of ISO8583-based messaging protocols, including different native Visa, Mastercard, and other international payment systems’ formats.

WAY4 Native Interconnection Hub benefits financial institutions in two particular cases:

  • Phased migration to WAY4. WAY4 Native Interconnection Hub helps launch WAY4 (or another payment platform) and have it working in parallel with a legacy system. It is an alternative to the ‘Big Bang’ approach which shuts down the old system as soon as the new one goes live.

    With the phased approach, the hub captures all the data traffic from the IPS and splits it between legacy and WAY4, according to your pre-defined rules. Eventually all the transactions will be switched to WAY4, and you can disconnect the obsolete system and the hub. 

  • Interoperability of multiple processing systems. If you permanently use several switching systems from different vendors, WAY4 Native Interconnection Hub can distribute the transaction flow between them. For instance, when a company acquires a division that runs its own payment infrastructure, that infrastructure can stay in place as long as needed. The hub can route IPS transactions between both processing systems – the main one and the acquired one.

WAY4 Native Interconnection Hub also works as a stand-alone solution. It can be used by payment players who do not run any other WAY4 solution and have no previous experience with our platform.

 

Merchant Wallet: Q1 2019 update

iOS Version Has Arrived

<A new product, separately licensed>

The WAY4 Merchant Wallet app now works on iOS – with the same functionality that we introduced last year in the Android version. Merchants can:

  • Generate a QR-code for a particular purchase and accept mVisa and Alipay payments from customers

  • Share the generated QR-code (via email, i-message, messengers. etc.)

  • See and filter the transaction history 

  • Receive real-time notifications (SMS, push)

  • Reverse transactions (fully or partially)

WAY4 Merchant Wallet helps decrease the cost of payment acceptance, which is especially attractive for SMEs.

QR-Code Sharing

<Enhancement to the existing product>

Merchants can now share the generated QR-code via channels supported by their mobile device (SMS, email, messengers etc). They can also print out the code and display a physical version of it at checkout. The update applies to both static and dynamic QR-codes. The dynamic QR-code allows merchants to pre-define some parameters of the transaction, for example apply a discount or offer a product bundle at a fixed price.

Transaction History Filters

<Enhancement to the existing product>

Now users can filter transaction history by operation type and period. It simplifies sales analysis for business owners and their personnel. 

  

 

Online Interface For Capturing Financial Documents From External Devices to WAY4

<New set of product options, separately licensed>

If your POS terminals run on a third-party platform, you can receive financial documents from those terminals without delay. The new WAY4 interface accepts data from external device controllers immediately after each payment. This feature eliminates batch file uploads that may jeopardize processing performance and prevent acquirers from scaling up their business.

VDEP Token Activation via Call Center

<New set of product options, separately licensed>

Visa cardholders can now enable mobile payments for their cards through the issuer’s call center. When the customer calls, the support officer uses a dedicated WAY4 screen to initiate VDEP token activation right away. WAY4 sends the online request to Visa Token Service (VTS) and receives the VTS reply about the token activation status. In case of success, the card will be available for mobile payments instantly.     

Migration to 8-digit BINs

bin

<Enhancement to the existing product>

<Requires a separate service agreement to launch a pilot project>

WAY4 now works with eight-digit BINs. International payment schemes have introduced this new standard to ensure an adequate BIN supply for the growing global payment industry. All issuers are required to support the new BINs by April 2022, thus avoiding misrouted transactions and unnecessary costs. OpenWay customers can migrate to the new standard without operation disruption or much reconfiguration of WAY4. 

How will it work? 

After the deadline every six-digit BIN, previously assigned to an issuer, will turn into 100 eight-digit BINs. For example, 412345 will turn into a hundred of eight-digit BINs – ranging from 41234500 to 41234599. Most probably, the international payment schemes will charge members for all new BINs instead of the initial one. Issuers are recommended to deactivate unused eight-digit ranges to optimize the BIN usage and avoid unnecessary costs.  

Issuers on WAY4 can clear the unoccupied BINs ranges step by step. Existing cards would keep the old BIN until the card expiry date. All re-issued and brand-new cards would get the new eight-digit BIN selected by the issuer. If you prefer a faster adoption of the new standard, we can prepare scripts for a ‘Big Bang’ mass re-issuance of card batches. 

OpenWay conducts BIN migration projects under a separate service agreement. To learn more, please consult your BRM.

 

Multi-Currency Travel Card

=

<A new product, separately licensed>

Issuers on WAY4 can target frequent travelers with a Multi-Currency Travel Card, giving them more transparency and control over currency conversion charges. 

Issuers can configure rules for such cards themselves or let customers do this via online banking. It begins with linking separate accounts in different currencies to a Multi-Currency Travel Card account. Then routing rules should be defined. 

When a transaction occurs, two scenarios are possible: 

  1. WAY4 selects a linked account depending on the transaction or settlement currency. For example, transactions in EUR go to the linked account in EUR, those in USD go to the USD account, and all the rest are recorded in GBP. 

  2. All transactions, regardless of their currency, are recorded on one preferred account.   

The Multi-Currency Travel Card can be debit or prepaid. The linked accounts can be stored in WAY4 or an external system, e.g. core banking.

Consumer Wallet Q1 2019 Update

IN-APP Know Your Customer (KYC)

<A new product options, separately licensed>

WAY4 Consumer Wallet now supports KYC within mobile app in real-time. We have recently completed our first in-app KYC project for a client in Vietnam. This client can now remotely verify their users’ identity and safely provide advanced services, for example increase transaction limits or provide access to wallet account withdrawal. The online KYC option means customers can skip a visit to the branch, thus cutting the company’s operational costs.

We can make WAY4 compatible with the KYC standards of any other country. If you would like a proposal or cost estimate, please consult your BRM.

To start the KYC procedure, users upload their selfie and a photo of an identity document, for example passport or driver’s license. The app sends both files to an external service for OCR/FR (optical character recognition/facial recognition). If both images feature the same person, WAY4 marks this customer profile as having undergone KYC.

Wallet Loyalty Program

We’ve introduced loyalty program management for WAY4 Consumer Wallet. If you configure this option in the back-end, the app users can do the following: 

  • Earn bonus points for certain actions, e.g. payments and loan repayments

  • Redeem bonus points towards bill payments and airtime purchase  

  • See history of points accrual and spending

  • Check their loyalty balance 

Lifestyle Digital Banking Q1 2019 Update

Enhanced view of Multi-Currency Cards

A sample screen of a multi-currency card view

Users can now manage multi-currency cards in a more transparent and flexible way following developments to WAY Lifestyle Banking. The banking menu shows all linked accounts in their respective currencies and the total balance in the main currency. It is also possible to filter transactions by account. 

Users can also choose the preferred account for a fund transfer or bill payment. If the operation amount exceeds the balance of the chosen account, the app suggests a linked account in another currency. WAY4 will process the currency conversions due before completing the operation. The transaction history will show two separate entries, one for each account involved.

We continue enhancing this stand-alone channel solution, built on an innovative platform and featuring a unique design.

Invoice Bulk Payments

Users can now pay for more than one bill at a time, confirming them all with a single OTP.

Push Notifications from External Systems

WAY4 Lifestyle Banking can now instantly capture messages from external systems (CRM, Core Banking, etc.) and pass them to the app user as push notifications. It includes alerts about processed transactions, outstanding bills and upcoming loan payments, new product promotions, special offers and other messages. Thus, you can serve useful information to customers more frequently. 

Push notifications are much cheaper than traditional SMS and can save on operational costs. If the mobile device is turned off or not connected to the Internet, or its settings forbid push notifications, WAY4 can send the same message via alternative channels, such as email or SMS.

A sample screen of push notifications

 

Upcoming Payments  

A sample screen of a calendar with upcoming payments

WAY4 Lifestyle Banking now shows upcoming payments and other messages (e.g. recurrent payment, monthly loan repayment, deposit interest accrual, upcoming card expiration dates, SMS fee collection) in a special section of the transaction history. They are usually displayed at the top of the list, and their dates are highlighted in the calendar. There you can also display marketing notifications or personal offers to a targeted customer segment in this way.

Rainbow Digital Banking Q1 2019 Update

mVisa Issuer SDK

<A new set of product options, separately licensed>

Issuers can now add mVisa QR-code payments to their mobile apps, by integrating our WAY4 mVisa Issuer SDK. Despite its name, our solution works with cards of Visa, Mastercard and any other payment system. 

When using the new functionality, buyers either scan the merchant’s QR code or manually enter the merchant ID. Manual entry is crucial in countries where feature phones are more common than smartphones, such as Kenya, Indonesia or Venezuela. Then the buyer chooses the preferred card for this payment. It can be a card issued by their mobile app provider or a linked card from another issuer. The last step is to type in the payment amount and confirm the transaction. 

WAY4 can also process payments that involve closed-loop QR codes. 

Sample screens of an mVisa payment process

For issuers this functionality is part of WAY4 Consumer Wallet. For acquirers, the acceptance of QR-code payments is part of WAY4 Merchant Wallet. This acquiring solution works with mVisa, closed-loop and Alipay QR codes.

Direct Debit for Payment Subscriptions

<A new set of product options, separately licensed>

Sample screens of direct debit enablement

WAY4 digital channels now support the direct debit functionality, also known as pre-authorized debit or automatic bill payments.

The banking menu provides the list of possible payees – utility providers, tax or traffic authorities, insurance companies, etc. The user selects which bills to pay automatically and which card or account to use for each company. When a bill or payment request arrives, WAY4 automatically debits the selected account for the requested amount and sends a push or SMS notification to the user.  

If the transaction fails (for instance, because of insufficient funds), WAY4 repeats the attempt and then notifies the customer via push message or SMS.

Online Request and Delivery of Statements from CBS

<A new set of product options, separately licensed>

Sample screens of the statement request

Cardholders can now request and receive statements from core banking systems via WAY4 web and mobile banking apps. This helps to relieve the pressure on bank branches to produce paper statements and perform routine customer requests. And frees up branch staff to focus on high-margin products and premium customer segments.

The cardholder can choose to receive the documents via e-mail or download them straight from the app.


Integration with Money Remittance Services

Sample screens of a transfer receiving

Users can now accept cross-border P2P money transfers via web and mobile banking. It covers Western Union, RIA, MoneyGram, IntelExpress and similar systems. This functionality means that customers do not need to visit physical agent locations, remember opening hours or wait in line. It may also decrease the workload and costs associated with in-branch customer service. 

The feature allows you to integrate with the money transfer systems directly or through an aggregator/PSP. For example, one of our clients has launched remittance acceptance by integrating with a large PSP present in 29 countries.

A future WAY4 release will enable users to not just accept but also initiate remittances via web and mobile.

Price List Storage

<A new set of product options, separately licensed>

Now WAY4 can download price lists of goods and services offered at fuel stations. The data are obtained from a POS terminal or H2H partner and provided, upon request, to external systems via web services. 

This feature supports the business operations of fuel companies. Their customers would be able to check up-to-date prices on a web portal. In addition, this information can be shared within the fuel partner H2H networks.   

New APIs (Web Services) Available

<A new set of product options, separately licensed>

Now there are more actions that WAY4 can take upon request from various external systems.

On the issuing side:

  • Recall of internal fund transfers or payments to/from WAY4 card/account. This “reversal” service may be requested by a core banking system after the bank moved funds or made corrections on customer accounts, and then balances in WAY4 system should be updated too.

  • Re-issuance of a virtual card with a new expiry date and new PAN. The new card is linked to the same account, while the old one is blocked.  

On the acquiring side:

  • Adding a merchant to the stop list, if requested by an external risk management system 

Client Age Check for Sales Purposes

<Enhancements to the existing product>

Now WAY4 can check the consumer’s age during authorization and apply specific transaction processing rules, based on your settings. For example, issuers can: 

  • Award bonuses for purchases to buyers under 18 on the International Children’s Day; 

  • Offer cashback to people older than 60;

  • Restrict e-commerce operations to consumers younger than 21 .