Engr. Abdul-Rahman MahmoodMS, PMP, MCP, QMR(ISO9001:2000)

armahmood786@yahoo.com alphasecure@gmail.com

alphapeeler.sf.net/pubkeys/pkey.htm http://alphapeeler.sourceforge.net

pk.linkedin.com/in/armahmood http://alphapeeler.tumblr.com

www.twitter.com/alphapeeler armahmood786@jabber.org

www.facebook.com/alphapeeler alphapeeler@aim.com

abdulmahmood-sss alphasecure mahmood_cubix 48660186

armahmood786@hotmail.com alphapeeler@icloud.com

http://alphapeeler.sf.net/me http://alphapeeler.sf.net/acms/

VC++, VB, ASP

1LINK & MNET

Teaching skills, Project Management

Course portal http://alphapeeler.sf.net/me

Class Policies

Class Policies

By Engr. Abdul Rahman Mahmood

Overview of 1LINK

Inter Bank Switch

About 1LINK 1LINK is shared ATM Switch operating in Pakistan since 1999.

Currently 1-LINK is the Largest Shared ATM Switch operating in

Pakistan.

The SWITCH is powered by TPS SWITCH Application “PHOENIX”

1LINK Technology is currently being looked after 1LINK (Guarantee) Ltd.

1LINK (Guarantee) Limited is a consortium of major banks that own and

operate the largest representative shared financial services network of

Pakistan.

The synergy of financial institutions working together for a common goal

has steadily increased the strength and services of 1LINK.

Switch connectivity with VISA Debit

About 1LINK 1LINK has become widely acknowledged brand with an increasing

number of member banks.

TPS is powering the Switch Technology with its Innovative /

Creativity.

The stability and reliability of Phoenix as the Switching Technology

used has resulted in a Strengthen customer driven product.

Banks offering the E-Banking facility are more comfortable with

1LINK as the shared switch than any other.

This is because of the greater value added privileged received by the

banks on 1-LINK than at any other share ATM Switch.

1LINK Statistical Data Member Banks : 22

Total ATM in Pakistan : 1804

Total cities reached : 155

Average Monthly TXN : PKR 1,925,77(as of June 2007)

Average Monthly Amount : PKR 1,925,770Transacted (as of 30/8/07)

1LINK Statistical DataMember Banks

1LINK 24

MNET 9

Financial transactions

1LINK on 1LINK 998,705

MNET on 1LINK 280,785

1LINK on MNET 185,451

1LINK IBFT 5,869

Visa TXN (Local) 19,485

Visa TXN (International) 5,292

Non Financial transactions

1LINK on 1LINK 299 452

1LINK on 1LINK 299, 452

MNET on 1LINK 74,645

1LINK on MNET 56,086

Withdrawal Volume

1LINK on 1LINK PKR 5,275,283,718

MNET on 1LINK PKR 1,300,883,900

1LINK on MNET PKR 787,283,500

1LINK IBFT PKR 296,686,985

VISA Volume (Local) PKR 34,696,009

VISA Volume (International) PKR 25,149,120

Total Transaction 1,925,770

Total Volume PKR 7,660,138,103

1LINK Architecture & Services

Architecture – General Overview

Service Offering Over 1LINKTRANSACTIONS

WITHDRAWAL

PURCHASE

BALANCE INQUIRY

Internet Bank Fund Transfer (ATM / POS)

Utility Bill Payment (ATM / POS)

OTHER SERVICES VISA Debit Card Issuance Facility. (Base I)

VISA Card Acquiring Facility. (SMS)

VISA Settlement (BASE-I / SMS)

VISA Settlement features (Chargeback, Representment etc).

RECONCILIATION Reconciliation with MNET.

Reconciliation with 1LINK Member Banks.

Reconciliation with All Stakeholders.

Services On 1LINK

$$$

$$$

UBPS

VISA

IBFT

???

???

VISA Debit

Utility Bill Payments

(UBPS)

VISA

UBPS

VISA

UBPS

$$$

IBFT

IBFT

VISA

$$$

???

IBFT

UBPS

= VISA Debit

= Cash Withdrawal

= Balance Inquiry

= Inter-Bank

Funds Transfer

= Utility Bill Payments

1LINK Operations

1LINK Operations As a Shared ATM Switch

Cutover Messages to ensure a business Cycle.

Transaction Routing on the basis of relevant fields.

Settlement proceeds for Transaction Count and Amount Verification.

Reporting for settlement.

Exports production for Settlement.

Settlement Cutover Message Cutover Messages are placed to ensure the business cycle date.

1LINK generates a cutover message which sent to all member banks so that they are

synchronized with the SETTLEMENT DATE.

1LINK rejects a transaction initiated from member banks if the settlement date is not

matched.

Settlement date is checked from the field of the Settlement Date (4 Digits – MMDD) in

the transaction messages.

The business day cycle is kept one day ahead so that the same can be reconciled the next

working day.

No cutover message generated on weekly holidays (Sundays) and other banking holidays.

Issuer / Acquirer When the customer of Bank A uses the ATM of Bank B, that makes Bank A the Issuing

Bank (it’s card is being used) and Bank B is the Acquiring bank (it’s ATM is being used).

Fee is Charged by the Acquirer Bank on per transactions basis from the Issuer Bank.

Settlement Period is the mutually agreed between the 1 Link Member Banks where all banks match their transactions with 1 Link Switch report. A fixed fee for the settlement of transaction is imposed on the issuing bank.

Cut-off is the time at which one settlement period ends. 1 Link Switch – 0600 hrs *

MNET Switch – 0000 hrs **

*Settlements based on Switch Settlement dates. Tran settlement which are due on holidays are preformed the next working day (Sundays or any public holidays)

**MNET settlement based upon calendar dates.

Issuer / Acquirer – At a Glance

Issuer Switch

…..

…..

Acquirer Switch

Issuer Host

Acquirer ATM

Acquirer Institution ID

Transactions of any card that is not local to a Bank is sent to 1LINK, with an ID Code

specifying the Bank on which the Card has been acquired.

A Bank may have issued cards with multiple IMD’s/BIN’s, but Acquirer Institution ID

Code will be unique.

ACQ Inst ID code is of 11 digit with first 6 digits are unique to one of the IMD of a bank

and the last 5 digits are zeros. (46495100000)

1LINK decides the routing on the basis of Acquirer Institution ID Code and IMD (first 6

digits of Card Number).

In transactions request Card IMD is used to send the transaction to Issuer Bank

In transaction response ACQ Inst ID Code is used to identify the destination.

Merchant Type Merchant Types are also used to bifurcate between the transactions between

1LINK Only, MNET and VISA transactions.

The merchant Type field sets the transactions to fall in the settlement

requirements.

For Instance

Merchant Type for 1LINK = 0003

Merchant Type for MNET = 0004

Merchant Type for VISA = 0007

1LINK Settlement Procedure

Settlement Procedure

1LINK performs settlement of transactions with all the

member banks and connecting switches.

Local Settlement

Local Withdrawal and Balance Inquiry

Local POS Settlement

Local IBFT Settlement

MNET Settlement

VISA Settlement

Local Settlement - Local Withdrawal & Balance Inquiry

Local Settlement refers to the Settlement between 1LINK Acquirer and 1LINK Issuer

Bank.

A Report file is generated on the settlement date basis, to mark out the transactions

among 1LINK members.

This report also includes the fee amount that is applicable on the respective transactions.

The Fee amount currently used by 1LINK to 1LINK is constant. That is PKR 15/- per

Withdrawal while no fee is imposed on Balance Inquiry.

A Settlement export File is also provided. This file is used by ABN AMRO to balance the

accounts of all the respective member banks.

The exceptional condition of late reversals are also handled.

Local POS & IBFT Settlement Local IBFT Settlement is performed in the same way as the above mentioned local

settlement.

Local IBFT settlement includes both the credit amount and the debit amount which are

always balanced.

Fixed fee of each IBFT transactions is also imposed as per specification of 1LINK.

Local POS Settlement involves the reporting of all purchase transactions and charging

each member bank with the amount used by them.

A fixed fee is also imposed.

Settlement is done on the basis of both Report file (generated on Settlement Date) and

the raw export (generated on the settlement date).

Local SettlementBank A Customer uses ATM of Bank B

Bank A Books

•Dt Customer AC Amt +15

•Cr SC Issuer Amt +15

Bank B Books

•Dt SD Acquirer Amt + 4*

•Cr ATM Cash

•Cr Bank B Commission +11

* 1LINK Commission 2

ABN Settlement fee 2

MNET Settlement ABN AMRO maintains one shadow account of the MNET

Switch. The actual settlement takes place at Muslim

Commercial Bank

Each calendar day is considered the settlement day i.e.

0000 hrs to 23.59 hrs

The Cut-off time is 0000 hrs

MNET Settlement MNET Provides the details of the settled transaction through a raw file.

This raw file is exported in the 1LINK System and are used to mark the status against each

transactions reported by MNET.

Exception conditions that arise are handled through the settlement procedure between

1LINK and MNET.

The document for Settlement Procedure will be provided for reference.

Different reports and export on the basis of settlement performed (on calendar date) are

generated from 1LINK which is used by 1LINK staff to settle the transactions.

Other Operational Functions

Transaction Dispute Handling Handling of Late Reversal

Status confirmation from the Acquirer – SWITCH

– Issuer.

If a dispute is raised the same is forwarded to ABN

AMRO (being settlement banks of 1LINK) which

clears the claim within 20 days of the initial

intimation.

Channel and Transaction Monitoring

Status monitoring of All Member banks, MNET and VISA.

Transactions Monitoring.

Timely Backups

Transaction Certification of Upcoming member banks.

Service provision to ensure 24 by 7 smooth operations of

1LINK.

Incorporation of New Member Banks

Channel and Transaction Monitoring 1LINK has developed standard Project Management Guide to facilitate Member

Bank on 1LINK Project.

1LINK Project is divided into following Four Phases.

Phase-I : Membership

Phase-II : Document Delivery

Phase-III : Certification

Phase-IV: Cutover

Critical Tasks have been mentioned separately to highlight there significance &

impact on Project timelines.

Project Management Guide is followed by Member Bank till the completion of

Project.

Phase-I : Membership ILINK Project starts with the discussion between 1LINK and Member Banks.

1LINK will submit formal proposal on the request of Member Bank.

1LINK have standard proposal for all Member Banks.

Member Bank has to provide Letter of Intent to express there willingness to join 1LINK Service.

Letter of Intent must be signed by authorized person and provided on Official Letterhead

1LINK has provided ‘Specimen Letter of Intent’ for the convenience of Member Bank.

The main ‘1LINK Agreement’ is signed among 1LINK founder member banks.

Member Bank has to sign the ‘Participation Memorandum’ of the main agreement.

1LINK will officially communicate to all Member Banks, Technology Providers and Settlement Bank on the induction of new ILINK Member Bank.

Phase-II :Document Delivery ‘1LINK Data Element Definitions Manual’ provides detailed definition of all ISO-8583 - 1987 Data

Elements used by 1LINK

‘1LINK Message Definition & Transaction Flow’ document describes all possible ISO 8583 – 1987

Message Types supported by 1LINK & Transaction Flow between 1LINK and co-networks.

‘1LINK Message Format’ document describes all the ISBO 8583 – 1987 Message Formats used by

1LINK.

‘1LINK Technical Standards’ document provides a set of technical standards related to 1LINK

operations and its interaction with Member Banks.

‘1LINK Certification Script’ documents contains the test scripts needed for full certification with

1LINK.

‘1LINK ATM Screens’ document provides the Format of Mandatory ATM Screens to be displayed on

Member Bank’s ATM.

‘1LINK IMD Listing’ document provides the list of IMD of existing 1LINK Member Banks.

Phase-II :Document Delivery ‘1LINK Transaction Charges’ document provides the details of charges/distribution on

ILINK transaction

‘1LINK Timeout Parameters’ document provides standard guidelines for 1LINK Timeout

setting to be configured on member bank ATM Controller and Banking Host System.

‘1LINK Branding Guidelines’ document provides standard guidelines for 1LINK branding

and use of 1LINK logo.

‘1LINK Account Opening Guidelines’ document provides standard guidelines for opening

the Nostro Account at ABN AMRO(1LINK Settlement Bank).

1LINK will provide standard set of forms to member bank. It is mandatory to send the

forms for the smooth certification and Production Cutover at 1LINK.

Phase III - Certification ‘1LINK Network Connectivity Form’ is required to be submitted by member bank to make

necessary network connectivity from the bank to 1LINK technology Site.

‘1LINK IMD Update letter’ is required to be submitted by Member Bank Business Contacts. The IMD (Interchange Member Descriptor) will be updated on 1LINK network.

1LINK has provided ‘Specimen IMD Update Letter’ for the convenience of Member Bank.

1LINK will send a memorandum to all the existing member banks about the induction of new member bank and to update the IMD listing at their Banking Systems.

1LINK will configure the network between member bank and its technology site on the basis of the ‘Network Connectivity Form’ submitted

Member bank will send their Card Design to 1LINK. It is mandatory by 1LINK that the Card Design must be in compliance with the ‘1LINK Branding Guidelines’

1LINK will confirm that the Card Design submitted by member bank is in compliance with 1LINK Branding Guidelines.

Member Bank has to acknowledge their readiness by providing ‘Certification Readiness Form.’ and readiness letter (Official Letter-head).

Phase III - Certification The filled ‘Certification Readiness Form’ can be submitted to 1LINK via email.

1LINK will confirm the Certification Slot after reviewing the readiness status of Member

Bank and availability of resource at 1LINK.

Pre-Certification Meeting among 1LINK, Member Bank and respective Technology

Providers will be arranged by 1LINK before the start of certification.

1LINK will certify Member Bank as per the specifications provided by 1LINK.

Standard ‘Daily Certification Activity Report’ will be published by 1LINK at the day end of

certification.

1LINK will send the certification report on daily basis to monitor the status of

certification and to ensure that the certification is completed within the time-slot.

The ‘Final Certification Report’ will be published by 1LINK after the completion of

certification slot.

Phase IV - Deployment 1LINK will invite the Operations Team of member bank to attend 1LINK

operations meeting in which the Standard Operating Procedures will be

communicated to member bank.

Member Bank has to send the ‘1LINK HSM Key Exchange Form’ for necessary

update at 1LINK.

‘1LINK Contact Directory Form’ is required to be filled by authorized bank

representative to designate its business, technology and operations contacts for

1LINK.

Member Bank has to provide the Contact Details for Daily eStatement.

Member Bank has to provide the Contact Details for Transaction Reports.

Member Bank has to provide the 1LINK ATM Listing form in the specified

format.

Member Bank has to confirm their readiness for cutover by submitting ‘Cutover

Readiness Form’.

Phase IV - Deployment 1LINK will arrange a Branding Meeting with the Marketing and Business

Department of the New Member Bank

1LINK will confirm the Cutover Date after reviewing the readiness status of

Member Bank and availability of resource at 1LINK.

1LINK will arrange a HSM key exchange activity before the schedule of

production cutover.

1LINK will perform necessary activity to perform production cutover for the

Member Bank.

1LINK and Member Bank have to discuss the mutually agreed launch date for

the 1LINK service.

1LINK Branding Guidelines should be followed in the media launch of 1LINK

Service.

Project Completion Meeting will be arranged by 1LINK to officially close the

project.

THANK YOU