Page 97 - ITU-T Focus Group Digital Financial Services – Technology, innovation and competition

ITU-T Focus Group Digital Financial Services
Technology, Innovation and Competition

Figure 6: Possible account logic 4

5 Credit account
A credit account will have the same transactional capability as the SVA, but also supports a negative balance
being created, and managed appropriately. It could also support: The account permitted to go into credit; fees
for a configurable period; charging of interest e.g. x.xx per cent for a configurable period; potentially multiple
accounts per customer – each account with different parameters.

6 SVA

The SVA will provide a prepaid account issued by the service provider (or partner financial institutions). The
movement of funds will be available through a variety of sources: cash in; money transfer; card loads; cash out.

The SVA capability will provide a master record of the customers’ available funds, points, or other units of
currency (including virtual) to allow them to transact. This capability will also deliver the required payments of
money transfer authorisations, ledger balance updates, refunds and reversals, as well as settlement processes
both with merchants when operating in a closed loop or with the external clearing houses when operating in
open loop, applying adequate transactional rules, such as timing delays for specific merchants and providing
dispute resolution tools.
When a transaction is performed, the SVA will identify the sender and receiver of funds, applying the appropriate
risk and fraud rules associated with the service being facilitated.

The platform should support multiple separate accounts per customer – each account with different parameters.

7 Issuer processing
In association with the accounts, users could have a plastic or virtual prepaid card using the identification
number of an established payment card network such as Visa, MasterCard, or any other international payment
schemes (IPS). The issuer processing capability will pass authorisation and settlement requests on to the various
accounts for processing. This number will identify the customer when performing an open loop transaction,
applying appropriate risk and fraud rules and ledger balance updating. All of the required actions to guarantee
transaction integrity must be performed to avoid data loss or duplicity. This capability must be able to handle
the periodical clearing and settlement processes defined by the plastic or virtual card issuer.

To support the creation of physical and logical cards, in addition to the payment process, the DFS platform
may also have all the systems and processes required for the creation of physical plastic, or an NFC enabled
card (both physical and virtual) as needed.

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