acquiring

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.

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.

Limits on Credit Operations

<Enhancements to the existing product>

Now acquirers can limit the total amount authorized for a merchant’s credit transactions – e.g. casino payments, insurance payments, etc. This functionality ensures that merchants always have enough funds for credit transactions, while acquirers get more protection against fraud.

Before processing a credit transaction WAY4 checks the available balance. If the established limit has exceeded, all such operations will be rejected until the merchant funds are replenished.

Purchase Return Control

<Enhancements to the existing product>

Now WAY4 offers a further tool to monitor and prevent fraud related to purchase returns, both in-store and e-commerce. It helps merchants and acquirers to decrease their fraud losses and financial institutions to comply with the latest IPS recommendations.

For each refund, WAY4 checks in real-time whether its amount matches the original purchase amount. If the goods are returned in portions, WAY4 would sum up all the related refund transactions and compare their total to the original purchase total. 

If the refund exceeds what the buyer initially paid, WAY4 can block the return operation, upon parameter setting.

Card Scheme Fee Calculation Based on Several Tariffs

<Enhancements to the existing product>

Now WAY4 can calculate a multi-component Card Scheme Fee (CSF) that acquirers pay to IPS for each transaction. The number of components, i.e. tariffs, ranging from zero to "N". If multiple CSF tariffs apply to the same transaction, they will be calculated independently, then summed up and posted as a single total fee. 

This feature simplifies your calculation of merchant service charges. 

Similar functionality can be used for other business cases. If you need WAY4 to calculate an amount as a complex mix of sub-fees, please consult with the OpenWay Support Team. 

Example: Let’s say, an acquirer has processed a 3-D Secure authenticated e-commerce transaction for 1000 EUR paid with a Mastercard commercial card. How will WAY4 calculate the CSF fee for this transaction?

Among all the CSF sub-fee tariffs registered in WAY4, the bold ones are applicable to the example transaction:

  • E-commerce 3-D – 0,005%

  • Currency USD – 0,01%

  • Currency EUR – 0,012%

  • Visa commercial card – 0,05%+0,00075 EUR

  • Mastercard commercial card – 0,005%

Total fee: 0,005%+0,012%+0,005% = 0,022% = 0,22 EUR

Merchant Wallet

<A new set of products, separately licensed>

WAY4 Merchant Wallet serves to decrease the cost of digital payment acceptance for sellers, especially SMEs. Now merchants have their own wallet app to  do the following:

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

  • See the history of their wallet transactions 

  • Receive real-time notifications about the transaction status (SMS, push)

  • Reverse transactions

Soon we will expand the functionally of Merchant Wallet by adding the Alipay acceptance. 

Fraud Prevention Platform

<Product under development>

We are developing a new-generation stand-alone fraud prevention platform. It’s designed for issuers and acquirers who use WAY4 or 3rd party CMS, core banking, or e-commerce gateway.

The solution will support rule-based transaction scoring with minimum impact on the processing system and provide a user-friendly interface. To make a decision, it can use data from internal and external databases. 

Workbenches Q1 2018 Update

<Enhancements to the existing product>

Access Granted Double-Check

The ‘access-granted’ double-check is a major enhancement in all workbenches that are based on the WAY4 case management platform – Claim Management, Dispute Management, Risk Management and others. Processors serving more than one bank are more likely to keep it on, as a necessary security measure.

Whenever someone initiates a document activity via configuration or operation screen, now WAY4 performs a second-level verification of the user access privileges. If the action is forbidden for this particular user, WAY4 displays a message about insufficient rights. More specifically, in earlier releases it was already possible to define fine-grained user access control to cases, through the Case Management-level grants. However, the new Access Granted Double-Check feature ensures an additional control of data access against the system-level officer grants. Subsequently, the combination of both access restriction levels applies – that is, case management-level restrictions as well as system-level restrictions.

Access can be granted or denied for individuals or groups of users. It can cover product categories, financial institutions and domains.

Some examples of how it works:

  • WAY4 always checks if the particular user has the right to manage cases of the selected financial institution.

  • Risk department officers can put a card into the exception list only if they are permitted to manage this particular issuer.

Customer Service Workbench

workbench_architecture_eng.png
  • Due to the ‘access-granted’ double-check, the workbench users can only access documents of their assigned financial financial institutions, regardless of the actual contract hierarchy.

  • Now WAY4 applies the ‘Maker-checker’ approach when a bank officer initiates ‘Credit Account’, ‘Debit Account, ‘Charge Fee’ and ‘Charge Manual Fee’ actions towards the cardholder. By default, WAY4 won’t post the created documents until the supervisor approves the actions.

  • The view of the contract hierarchy of cards with several linked accounts has changed. Now the main card resides on the top level, and all linked account contracts are shown under the card. It simplifies the clerk’s work with information for each sub-account. This enhancement is especially useful when showing the hierarchy for a multi-currency card and its related accounts in different currencies.

  • When creating a new client contract, corporate card issuers can select a corresponding liability contract. We added this feature to simplify corporate card reporting.

  • When searching the cardholder transaction history, bank officers can use a new filter – Balance Change Mode. It helps to exclude the transactions which did not change the balance, such as PIN Change or Balance Inquiry.

Dispute Management Q1 2018 Update

<New set of product options, separately licensed>

Visa Real-Time System Interface, previously available for WAY4 acquirers, now works for WAY4 issuers too. Using RTSI, our system can connect to Visa Resolve Online (VROL) automatically and exchange inward and outward questionnaires, explanations and so on. This interface serves to minimize the need of manual queries to VROL and is fully compatible with new Visa VCR rules. 

Datamart Q1 2018 Update

<Enhancements to the existing product>

General enhancements

  • We have introduced a new approach for flexible data loading. Now all data tables are grouped in semantical data sets or ‘modules’. Examples of such modules are “Instalments”, “Dispute cycles”, “All issuing operations”, and “Authorizations”. Our new interface lets you easily enable or disable standard module loads. You can also register custom modules and include them in a standard load procedure. Soon users will be able to set the desired frequency and priority of data load.

  • Now WAY4 Housekeeping can merge and compress old partitions and store old unchanged data in a more compact way. It serves to free Datamart server space.

What’s new for issuers?

  • Now issuers can load dispute data – reason code, result code, activity date and other chargeback-related information – from WAY4 Case Management into WAY4 Datamart.

What’s new for acquirers?

  • Now the special Interchange Fee Reconciliation mart shows information from IPS Reconciliation report provided by Visa and Mastercard. If you use the WAY4 Fee Prediction solution, you can also load and compare the predicted and actual fee values.

  • A new table describes the hierarchy of acquiring contracts. Therefore, contracts have got a new classifier to mark their position within hierarchy. It gives you more flexibility in data analysis. For example, a merchant statement can show which parental contracts this one resides under – going as many levels up as you need. Or you can generate settlement reports that cover only merchants of the selected ISO or Payment Facilitator.

Enhanced Tariff Configuration Q1 2018

<Enhancements to the existing product>

While calculating a differentiated fee in real-time, WAY4 can now take into account the contract turnover or number of certain types of transactions for the period. We added this option for both issuing and acquiring products. This comes into its own when several possible tariffs could apply to a single transaction, which has just hit the volume threshold. The most typical use case is a volume-based cash withdrawal fee.

Example of a calculation algorithm:

On March 28th a customer withdraws 500 USD from the ATM. During the current reporting period (March 1-31) this customer has already withdrawn 1600 USD. How will WAY4 calculate the fee for the new transaction?

If the issuer has configured the following tariffs on cash withdrawal:

  • Up to 2000 USD during the period = 1%

  • More than 2000 USD during the period = 3%

  • Minimal fee = 2 USD

here is the dynamic fee calculation:

=> Final fee applied in real-time = max(400*1%+100*3%, 2)= 7 USD

Account Updater Service

<New set of product options, separately licensed>

The Visa Account Updater (VAU) and Mastercard Automatic Billing Updater (MABU) services help merchants to process account-on-file transactions and recurring payments on renewed or replaced cards without interruption, and to get earlier notifications concerning the card closures. Now our system supports this feature for both issuers and acquirers.

After issuing, reissuing or closing a card, WAY4 generates VAU/MABU files. They are sent to the IPS network for the benefit of other scheme members.

Merchant Portal & Merchant Service Workbench Q1 2018 Update

<Enhancements to the existing product>

WAY4 Merchant Portal & WAY4 Merchant Service Workbench now include several enhancements:

  • When merchants request the transaction history, WAY4 can shorten the timeframe of the search results which helps increase system stability. The acquirer simply pre-defines the maximum number of days to display. This limit will overrule users’ requested intervals. If the transaction list was truncated, WAY4 shows a pop-up message. The merchant can then see the maximum number of days possible and corrects search requests accordingly.

  • If merchants edit their previous message(s) to the acquirer, acquirer users can see the message change log.

  • Now the “Maker-Checker” approach applies by default to your staff managing merchant accounts. If an acquirer user initiates “Credit Account", "Debit Account" and “Change Fee”, WAY4 won’t post the created documents until the supervisor approves the actions.

  • Also, the system checks user privileges before editing transactions and initiating reimbursements for the chosen merchant. If the action is forbidden for this workbench user, WAY4 displays a message about insufficient rights. This feature is especially convenient for a processor that has larger teams – with different users responsible for their own respective customers.

Interchange Fee Reconciliation

<New set of product options, separately licensed>

Now WAY4 can import Visa and Mastercard reports that reflect interchange fees charged by IPS on every past transaction. Such information helps acquirers to maintain the pricing transparency on acquiring services: merchant will see prime cost of transaction and how much they pay on top of it. In particular, this transparency is a must for SEPA acquirers who should comply with the MIF regulation in Europe. All fees are presented in the merchant statements and reports.

Acquirers can feed this data into their analytical systems in order to identify the most common gains and losses, measure the profitability of merchant accounts and develop customer portfolios more strategically.

If you are using WAY4 Fee Prediction,

The new feature also reconciles your predicted interchange fees against the actual values. WAY4 records the difference (if any). A wide discrepancy may signal that IPS overcharged the acquirer for some reason. Now you can be alerted to such instances and investigate such issues in timely manner.

Alipay on WAY4

alipay_on_way4

<New product options, separately licensed>

OpenWay has integrated WAY4 Acquiring with the Alipay system to support “Transaction QR Code Payments”, so you can start processing Alipay transactions for your merchants.

Alipay is the top-choice of payment method for Chinese tourists. Forbes estimates that “192 million Chinese tourists will travel abroad annually by 2021, spending $457 billion in overseas markets.”

When it’s time for the customer to pay in a retail store, WAY4 can request the order-specific QR code from Alipay and display it on the POS terminal. Buyers use their Alipay mobile app to scan the code and confirm the purchase. WAY4 notifies the merchant on the transaction status.

As the acquirer, you can manage payment authorization, transaction cancelling and refunds related to Alipay transactions. This new functionality is available for our customers running POS acquiring business entirely on WAY4, and for their partners and ISOs whose POS terminals connect to WAY4 via host-to-host interface.

Per our customers’ request, we are ready to expand WAY4’s integration with Alipay and support more payment methods – “Merchant QR Code Payment”, “Barcode payment”, e-commerce and in-app mobile payments. 

  

mVisa payments for merchants

<New set of product options, separately licensed>

mVisa is a mobile payments solution by Visa that allows Visa cardholders to pay for goods in-store or remotely through scanning a QR code or entering a merchant ID.

Previously, WAY4 could already identify the mVisa transactions made in brick and mortar stores and process them according to the mVisa specification.

The new version introduces a mobile app for merchants to manage their mVisa transactions. They can generate QR codes, receive notifications on payments, initiate reversals, and check the transaction history.