This chapter contains the following sections:
The following is a brief account of the Switch software domain and the components in a Cards Transactions Business network.
The following diagram illustrates the components in the switch network.
ATMs and POS Terminals are connected with the Switch Software system using proprietary message protocol depending on the upon the terminal device type. Switch software is also connected with ‘Interchanges’ like VISA and MasterCard.
A switch software system provides the following functionalities:
ISO8583 protocol is called the ‘Financial Transaction Standard for Card originated messages and Interchange message specifications’. This protocol provides for the exchange of information between an ‘Acquirer’ and an ‘Issuer’ for card transactions. The terms ‘Acquirer’ and ‘Issuer’ are explained below.
Acquirer
An Acquirer is the Bank that deploys the self servicing devices like ATM /POS and may have a switch system software and Interchange connections.
Issuer
An Issuer is the Bank that issues cards to its customers. It has the database of accounts and is connected to the Switch system software. In the course of transactions via the switch system, Issuers respond to Acquirers with approval or rejection messages.
The Switch system transaction flows can happen in three different ways. Each flow is termed as a Category of the transaction. The categories are from the Issuer bank’s perspective. The following example explains the categories.
Consider that Oracle FLEXCUBE system is installed at YOUR BANK. Consider another bank, say HSBC, with which you can have card based transactions. Then the following are the categories depending upon which bank’s Card or Terminal is involved.
Cards |
ATM/POS Terminal |
Category of Transaction |
YOUR BANK Cards |
YOUR BANK |
On-Us |
YOUR BANK Cards |
HSBC |
Remote-On-Us |
HSBC Cards |
YOUR BANK |
Off-Us |
The following are the various accounting entries for ATM Transactions.
ON US
DR CUSTOMER A/C BILL-AMT (converted to a/c ccy)
CR CASH GL TXN-AMT
DR CUSTOMER A/C TXN_FEE (converted to a/c ccy)
CR P&L GL TXN_FEE
DR CUSTOMER A/C TXN_PROCESS_FEE (converted to a/c ccy)
CR P&L GL TXN_PROCESS_FEE
DR CUSTOMER A/C FC_CHARGES (converted to a/c ccy)
CR P&L GL FC_CHARGES
Remote – ON US
DR CUSTOMER A/C BILL-AMT ( converted to a/c ccy)
CR NETWORK SUSPENSE GL SETL_AMT
DR CUSTOMER A/C TXN_FEE (converted to a/c ccy)
CR NETWORK SUSPENSE GL TXN_FEE
DR CUSTOMER A/C TXN_PROCESS_FEE (converted to a/c ccy)
CR NETWORK SUSPENSE GL TXN_PROCESS_FEE
DR CUSTOMER A/C FC_CHARGES (converted to a/c ccy)
CR P&L GL FC_CHARGES
During Network Settlement
DR NETWORK SUSPENSE GL SETL_AMT
CR NETWORK NOSTRO A/C SETL_AMT (converted to a/c ccy)
DR NETWORK SUSPENSE GL TXN_FEE
CR NETWORK NOSTRO A/C TXN_FEE (converted to a/c ccy)
DR NETWORK SUSPENSE GL TXN_PROCESS_FEE
CR NETWORK NOSTRO A/C TXN_PROCESS_FEE (converted to a/c ccy)
OFF- US
DR NETWORK SUSPENSE GL SETL-AMT (converted to a/c ccy)
CR CASH GL TXN-AMT
DR NETWORK SUSPENSE GL TXN_FEE (converted to setl ccy)
CR P&L GL TXN_FEE
DR NETWORK SUSPENSE GL TXN_PROCESS_FEE (converted to a/c ccy)
CR P&L GL TXN_PROCESS_FEE
During Network Settlement
DR NETWORK NOSTRO A/C SETL_AMT ( converted to a/c ccy)
CR NETWORK SUSPENSE GL SETL_AMT
DR NETWORK NOSTRO A/C TXN_FEE
CR NETWORK SUSPENSE GL TXN_FEE (converted to a/c ccy)
DR NETWORK NOSTRO A/C TXN_PROCESS_FEE ( converted to a/c ccy)
CR NETWORK SUSPENSE GL TXN_PROCESS_FEE
ON US
DR CUSTOMER A/C TXN_FEE (converted to a/c ccy)
CR P&L GL TXN_FEE
DR CUSTOMER A/C TXN_PROCESS_FEE (converted to a/c ccy)
CR P&L GL TXN_PROCESS_FEE
DR CUSTOMER A/C FC_CHARGES (converted to a/c ccy)
CR P&L GL FC_CHARGES
R-ONUS
DR CUSTOMER A/C TXN_FEE (converted to a/c ccy)
CR NETWORK SUSPENSE GL TXN_FEE
DR CUSTOMER A/C TXN_PROCESS_FEE (converted to a/c ccy)
CR NETWORK SUSPENSE GL TXN_PROCESS_FEE
DR CUSTOMER A/C FC_CHARGES (converted to a/c ccy)
CR P&L GL FC_CHARGES
During Network Settlement
DR NETWORK SUSPENSE GL TXN_FEE
CR NETWORK NOSTRO A/C TXN_FEE (converted to a/c ccy)
DR NETWORK SUSPENSE GL TXN_PROCESS_FEE
CR NETWORK NOSTRO A/C TXN_PROCESS_FEE (converted to a/c ccy)
OFF-US
DR NETWORK SUSPENSE GL TXN_FEE (converted to setl ccy)
CR P&L GL TXN_FEE
DR NETWORK SUSPENSE GL TXN_PROCESS_FEE (converted to a/c ccy)
CR P&L GL TXN_PROCESS_FEE
During Network Settlement
DR NETWORK NOSTRO A/C TXN_FEE
CR NETWORK SUSPENSE GL TXN_FEE (converted to a/c ccy)
DR NETWORK NOSTRO A/C TXN_PROCESS_FEE ( converted to a/c ccy)
CR NETWORK SUSPENSE GL TXN_PROCESS_FEE
ON US
DR CASH GL TXN-AMT
CR CUSTOMER A/C BILL-AMT (converted to a/c ccy)
DR CUSTOMER A/C TXN_FEE (converted to a/c ccy)
CR P&L GL TXN_FEE
DR CUSTOMER A/C TXN_PROCESS_FEE (converted to a/c ccy)
CR P&L GL TXN_PROCESS_FEE
DR CUSTOMER A/C FC_CHARGES (converted to a/c ccy)
CR P&L GL FC_CHARGES
ON US
DR FROM A/C BILL-AMT (converted to a/c ccy)
CR TO A/C TXN-AMT (converted to a/c ccy)
DR FROM A/C TXN_FEE (converted to a/c ccy)
CR P&L GL TXN_FEE
DR FROM A/C TXN_PROCESS_FEE (converted to a/c ccy)
CR P&L GL TXN_PROCESS_FEE
DR CUSTOMER A/C FC_CHARGES (converted to a/c ccy)
CR P&L GL FC_CHARGES
ON US
DR CUSTOMER A/C BILL-AMT (converted to a/c ccy)
CR MERCHANT SUSPENSE GL TXN-AMT
DR CUSTOMER A/C TXN_FEE (converted to a/c ccy)
CR P&L GL TXN_FEE
DR CUSTOMER A/C TXN_PROCESS_FEE (in a/c ccy)
CR P&L GL TXN_PROCESS_FEE
DR CUSTOMER A/C FC_CHARGES (converted to a/c ccy)
CR P&L GL FC_CHARGES
During Merchant Settlement
DR MERCHANT SUSPENSE GL TXN_AMT– COMMISSION (a/c ccy)
CR MERCHANT A/C TXN_AMT– COMMISSION (a/c ccy)
DR MERCHANT SUSPENSE GL COMMISSION
CR P&L GL COMMISSION
Remote – ON US
DR CUSTOMER A/C BILL-AMT (converted to a/c ccy)
CR NETWORK SUSPENSE GL SETL-AMT
DR CUSTOMER A/C TXN_FEE (converted to a/c ccy)
CR NETWORK SUSPENSE GL TXN_FEE
DR CUSTOMER A/C TXN_PROCESS_FEE (a/c ccy)
CR NETWORK SUSPENSE GL TXN_PROCESS_FEE
DR CUSTOMER A/C FC_CHARGES (a/c ccy)
CR P&L GL FC_CHARGES
During Network Settlement
DR NETWORK SUSPENSE GL SETL_AMT
CR NETWORK NOSTRO A/C SETL_AMT (converted to a/c ccy)
DR NETWORK SUSPENSE GL TXN_FEE
CR NETWORK NOSTRO A/C TXN_FEE (converted to a/c ccy)
DR NETWORK SUSPENSE GL TXN_PROCESS_FEE
CR NETWORK NOSTRO A/C TXN_PROCESS_FEE (a/c ccy)
OFF-US
DR NETWORK SUSPENSE GL SETL-AMT (converted to a/c ccy)
CR MERCHANT SUSPENSE GL TXN-AMT (converted to a/c ccy)
DR NETWORK SUSPENSE GL TXN_FEE (converted to setl ccy)
CR P&L GL TXN_FEE
DR NETWORK SUSPENSE GL TXN_PROCESS_FEE (a/c ccy)
CR P&L GL TXN_PROCESS_FEE
During Network Settlement
DR NETWORK NOSTRO A/C SETL_AMT
CR NETWORK SUSPENSE GL SETL_AMT
DR NETWORK SUSPENSE GL TXN_FEE
CR NETWORK NOSTRO A/C TXN_FEE (converted to a/c ccy)
DR NETWORK NOSTRO A/C TXN_PROCESS_FEE (a/c ccy)
CR NETWORK SUSPENSE GL TXN_PROCESS_FEE
During Merchant Settlement
DR MERCHANT SUSPENSE GL TXN_AMT – COMMISSION
CR MERCHANT A/C TXN_AMT – COMMISSION
DR MERCHANT SUSPENSE GL COMMISSION
CR P&L GL COMMISSION
Oracle FLEXCUBE generates ASCII files (‘|’ separated) with the balances of all the accounts that are linked with Cards. The following table gives the general Balance Handoff File Format of Oracle FLEXCUBE. You may have a different format installed as per your requirements.
Header
Field Sequence # |
Field Name |
1 |
No. of Accounts |
2 |
Check Digits |
3 |
Time Stamp |
Body
Field Sequence # |
Field Name |
Size (Characters) |
Description |
1 |
Branch code |
3 |
Oracle FLEXCUBE branch code |
2 |
Customer Account number |
28 |
Account number |
3 |
Account Currency |
3 |
Account currency code - alpha |
6 |
Available balance. This represents the amount available for withdrawal/spending. Switch should stand-in based on this field. |
22 |
Available balance from Oracle FLEXCUBE. Limit to be included should be definable. |
Footer
Field sequence # |
Field Name |
1 |
No. of Accounts |
2 |
Check Digits |
3 |
Time Stamp |
The following table gives the format of the file accepted by Oracle FLEXCUBE for network settlements. Fields are separated by ‘|’ pipe symbol and the amounts are with decimal included. The following table gives the general format in Oracle FLEXCUBE. You may have a different format installed as per your requirements.
Field Sequence Number |
Field Name |
Size |
Mandatory (M) / Optional (O) |
Remarks |
1 |
Message type |
n4 |
O |
If it is optional, original or reversal is identified based on Transaction code |
2 |
Card number |
n19 |
M |
|
3 |
Branch code |
n3 |
O |
|
4 |
Bank account number |
ans 28 |
M |
|
5 |
Transaction Code |
ans 10 |
M |
05 - Sale, 06 - Refund, 07- Cash Wdl, 25 - Sale reversal, 26 - Refund reversal, 27 - Cash wdl reversal. Refer Transaction service derivation logic in earlier sections. |
6 |
processing code |
ans 6 |
O |
This is used for information purpose |
7 |
Transaction Amount |
n 22 |
M |
Refer Amount derivation logic |
8 |
Transaction ccy |
n 3 |
M |
Refer Amount derivation logic |
9 |
Settlement Amount |
n 22 |
O |
Refer Amount derivation logic |
10 |
Settlement Currency |
n 3 |
O |
Refer Amount derivation logic |
11 |
Billing Amount |
n 22 |
O |
Refer Amount derivation logic |
12 |
Billing currency |
n3 |
O |
Refer Amount derivation logic |
13 |
Transaction Date (Format YYYYMMDD) |
s 8 |
M |
Used for Transaction matching |
14 |
Transaction Time |
s 6 |
M |
|
15 |
STAN |
an 12 |
M |
Used for Transaction matching |
16 |
Original STAN |
An12 |
O |
Used in reversals |
17 |
Acquirer ID |
asn 6 |
M |
Used for Transaction matching |
18 |
Terminal ID |
ans 16 |
M |
Used for Transaction matching |
19 |
Card Acceptor ID |
ans 20 |
O |
|
20 |
Merchant Id |
ans 20 |
O |
|
21 |
Merchant Name |
ans 40 |
M |
Information purpose |
22 |
Merchant City |
ans 40 |
M |
Information purpose |
23 |
Merchant Country |
asn 10 |
O |
|
24 |
Merchant Category code |
n 4 |
M |
|
25 |
Retrieval reference number of transaction |
an 12 |
M |
|
26 |
Authorization Code |
ans 6 |
M |
Used for Transaction matching |
27 |
Authorization Reference |
ans 20 |
O |
Some other reference for matching |
28 |
Response code |
n4 |
O |
if sent, only 00 is considered for processing |
29 |
Domestic flag |
S 1 |
O |
D – Domestic I – International R – regional (Europe) |
30 |
Settlement Account |
Ans28 |
O |
|
31 |
Pre-Auth and Charge back Data |
Ans 45 |
O |
Applicable only in case of Reconciliation |
The following table gives the format of the file accepted by Oracle FLEXCUBE for Merchant Settlements. Fields are separated by ‘|’ pipe symbols. The following table gives the general format in Oracle FLEXCUBE. You may have a different format installed as per your requirements.
Field Sequence # |
Field Name |
Length |
Mandatory / Optional |
Description |
1 |
Merchant ID |
an 15 |
M |
To be used to derive merchant a/c |
2 |
Transaction code |
2 |
M |
To be used to derive the product |
3 |
Processing code |
6 |
O |
ISO type processing code |
6 |
Event date |
8 |
O |
Batch processing date |
7 |
Amount |
22 |
M |
Total amount settled to merchant |
|
Currency |
3 |
M |
|
8 |
Tax Amount |
22 |
O |
reserved for future use |
9 |
DrCr Flag |
1 |
O |
incase switch sends, use it |
10 |
Commission Amount |
22 |
O |
To be detected |
11 |
Commission Flag |
1 |
O |
commission flag incase sent |
12 |
Commission currency code |
3 |
O |
commission currency code |
13 |
Merchant current a/c |
28 |
O |
incase merchant ID is not having any maintenance at Oracle FLEXCUBE |
14 |
Branch code |
3 |
O |
Merchant branch code |
15 |
Bank code |
10 |
O |
Merchant bank code |
16 |
User Info |
30 |
O |
Reserved for CSE |
The SWTB_PARAM is the single record table for SWIG initial parameters. The maintenances in this table are done during implementation of the Switch Interface Gateway system. This is for your information only.
FOLLOW_ON |
Y |
AMOUNT_BLOCK |
Y |
SETL_BEFORE_FILE |
Y |
LOG_TABLE_KEY |
MSG_TYPE~RRN |
CHG_ON_BALENQ |
N |
CHG_ON_ADSTMT |
N |
CHG_ON_MISTMT |
N |
CHG_ON_CHQBK |
N |
NO_TXN_MISTMT |
10 |
ISO_VERSION |
0 |
NO_CHK_LEAVES |
25 |
ACC_STMT_PERIOD |
1 |
UTIL_PROV_ACC_SEND |
Y |
BLOCK_EXP_DAYS |
30 |
MAX_RETRY_COUNT |
5 |
FCC_ACC_FROM_SWITCH |
N |
ONLY_PAN_FROM_SWITCH |
N |