Payments Lifecycle

UNDERSTANDING THE PAYMENTS LIFECYCLE

THE WHO’S WHO

CARDHOLDER

Anyone making a payment using a card. Also known as shopper, consumer, gamer, client, etc.

Go live

Reporting begins

Scroll for more

From different payment players to an industry filled with strange acronyms, it can be hard to truly understand how payments work behind the scenes. We’re breaking down the basics so you have the foundation that will guide you towards future payments understanding.

Are you on track for the April 2020 SFTR deadline?

With a go-live date set, work now must be done on crystallizing milestones and marshalling the resources necessary to meet them.

Confirm Delivery Project Plan

Now let’s follow a payment

Whatever system your organization employs, it is likely that an upgrade or an additional module may be required. Can your provider meet your upgrade needs alongside those of their other clients?

Install Upgraded Software

From June 2019 –

SFTR has added many new data fields for transaction reporting that the securities finance business has simply not had to consider before. Data gathering, loading and testing cannot be underestimated.

Data Gathering, Loading and Testing

May-Oct. 2019

Connectivity and testing with your chosen Trade Repository (TR) requires selecting one of the many providers in this space. Failing to connect effectively and understand exactly how the data transfer will work could invite project failure.

Trade Repository Testing

Sept. 2019 – Feb. 2020

You should be here

The logic of what to report and when to report it, including all life cycle events, is leading many market participants to examine their existing workflow and capabilities.

Implementation and Contigency

Dec. 2019 – march 2020

By now you should be well on your way to the finish line. If not, there’s not much time left to catch up!

April 2020

©2021 FIS FIS and the FIS logo are trademarks or registered trademarks of FIS or its subsidiaries in the U.S. and/or other countries. Other parties’ marks are the property of their respective owners. 1476648

twitter.com/fisglobal

linkedin.com/company/fis

www.fisglobal.com

FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our people are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500® company and is a member of Standard & Poor’s 500® Index

About FIS

Discover how FIS can keep you on track

The cardholder makes a purchase using a card, mobile/digital wallet, or any other payment method.

2010 - Trading on NYSE goes digital

FIS has been working closely with all the trade repositories to ensure an efficient and cost-effective SFTR solution. Collaboration across the industry has never been stronger and FIS is front and center in that effort. And we’re happy to say that Apex Securities Finance and Global One fully support SFTR reporting with the ability to produce the SFTR reports in the ESMA ISO 20022-defined layouts or connect with a third-party provider of your choice.

Any store, website or app that allows you to make a payment. Also referred to as a merchant.

retailer

A financial institution that builds the technical infrastructure required to enable the movement of funds between card issuers and merchants.

acquirer

Maintains the direct relationship with the cardholder and holds their funds. For providing this service they apply a cost called interchange.

card issuer/bank

Payment providers that connect to one or multiple acquirers to support the initiation of card payments. Many also provided value added services such as fraud tools, payment pages, tokenization, alternative payment methods, etc.

gateway

Provide the network/rails (Visa, Mastercard, American Express, etc.) that allow payments to flow when their card brand is used to make a payment. They also set the rules and regulations for all parties involved in the payments cycle. For providing this service they charge a scheme fee.

card schemes/ networks

The retailer relays all cardholder information to a gateway.

The gateway sends that information to the acquirer.

The acquirer passes the information to the card scheme/network.

The card scheme/network verifies all information with the card issuer/bank.

Once the card issuer/bank has confirmed the card is valid and the cardholder has the funds needed to make the purchase, they send an approval to the card scheme/network.

The card scheme/network sends the approval back to the acquirer.

The acquirer will pass that approval back through the gateway.

The gateway will relay the approval back to the retailer’s site or point of sale.

The cardholder sees that the purchase has been completed.

All of this happens in just a few seconds

Worldpay from FIS is a leading payments technology company and the world’s largest acquirer. We understand payments and build custom solutions that truly meet the needs of our customers. We see payments as a strategic business advantage and we’re here to deliver an innovative, end-to-end payment solution that drives up acceptance, improves customer experience and reduces fraud.

READY TO DrIVE FURTHER?

Anyone making a payment using a card. Also known as shopper, consumer, gamer, client, etc.

CARDHOLDER

The cardholder makes a purchase using a card, mobile/digital wallet, or any other payment method.

Now let’s follow a payment