How can you manage complex payment transactions and data with Payment Systems Standards?

1 Types of Payment Systems Standards

Different types of payment systems standards exist, depending on their purpose, scope, and level of detail. ISO 20022 is a universal standard for financial messaging that defines the structure, format, and content of payment messages across different domains and platforms. EMV specifies chip-based payment cards and terminals to ensure interoperability, security, and fraud prevention. PCI DSS sets out requirements for protecting cardholder data and maintaining a secure payment environment. 3-D Secure is a protocol for authenticating cardholders during online transactions with a verification step by the card issuer. Lastly, PSD2 is a European regulation introducing new rules for payment services such as open banking, strong customer authentication, and third-party providers.

2 Benefits of Payment Systems Standards

Payment systems standards offer a variety of advantages to payment service providers and customers alike. These include reducing costs and errors by streamlining and harmonizing payment processes and data formats, as well as enhancing security and compliance through the establishment of best practices and guidelines for protecting payment data and preventing fraud. Furthermore, payment systems standards can improve customer experience and satisfaction by providing a wider range of payment options and services with more choice, convenience, and transparency. Finally, they can facilitate innovation and competition by allowing new payment models, solutions, and players to enter the market and offer value-added services.

3 Challenges of Payment Systems Standards

Payment systems standards can present a challenge for payment service providers and customers, such as staying up to date with changing regulations and technology. Balancing the need for standardization and customization is also difficult, as different payment scenarios and markets may require varying levels of flexibility. Furthermore, managing the complexity and diversity of payment systems and standards is difficult, as different payment methods, platforms, and systems have various features, functionalities, and requirements. Finally, integrating and migrating legacy systems and data to new payment systems and standards is time consuming, resource intensive, and risky.

4 How to Use Payment Systems Standards

Using payment systems standards effectively requires understanding your payment needs and goals, as well as your target market and customer preferences. Assessing your current payment systems and data can help identify any gaps, issues, or opportunities for improvement. It is important to select the most suitable payment systems and standards for your payment scenarios that are compatible and compliant with your existing systems and data. Testing your payment systems and standards, monitoring their performance and impact, and reviewing and updating them regularly are essential steps to ensure you are adapting to any changes or developments in the payment industry.

5 Resources for Payment Systems Standards

If you want to learn more about payment systems standards, the International Organization for Standardization (ISO) and the European Payments Council (EPC) are two great resources. The Payment Card Industry Security Standards Council (PCI SSC) develops and manages the PCI standards and programs for payment security, while EMVCo manages and evolves the EMV specifications and related testing and certification processes for payment cards and terminals. Additionally, the 3-D Secure 2.0 Technical Specification defines the technical requirements and features of the 3-D Secure protocol for online payment authentication.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?