Recent research shows that 51% of Canadian SMBs say managing cash flow is one of their biggest challenges. Take travel expense consolidation as an example. Even as employees are given corporate travel cards, each card has its own separate account behind
it, credit limit, and consolidating it back to the appropriate cost center is something that usually happens after the fact, is inaccurate and inefficient.
Payment industry should be able to address this issue. The good news is that that can be done and it is very easy. ProxyEMVPay cards are the answer.
ProxyEMVPay cards are EMV cards, issued as normal Visa, MasterCard or Amex compatible / branded cards, personalized with ISO/IEC 7812 compatible payment token (i.e. ProxyEMVPay card number) and standard set of and EMV cryptographic keys. Basically ProxyEMVPay
card is issued ahead of linking it to the REAL underlying payment card credentials. The ProxyEMVPay payment token is therefore ‘decoupled’ from the underlying payment card account and can be in two main states:
1. INACTIVE – when linked to a NULL underlying payment card credentials, inside the Tokenization Service Provider (TSP) server that is in charge of the linking. In this state they can’t be used for payments, i.e. all transactions initiated
with INACTIVE tokens are going to be rejected.
2. ACTIVE – when linked to the real and legitimate underlying payment card credentials. In this state ProxyEMVPay cards can be used for payments, as long as TSP server, which is in charge of the linking, confirms and guaranties to the underlying
payment card issuer and network that all payment restrictions, attached to the current linking (i.e. max spending allowance, max number of transactions allowed, etc, including payment token EMV cryptogram validation) are satisfied
Corporation has one or more REAL corporate travel card accounts (for example ‘PAN per cost center’)
Corporation provides employees with pre-tokenized, ‘inactive’ ProxyEMVPay cards, compatible with the payment network brand behind REAL corporate travel card accounts (i.e. Visa, MasterCard or Amex)
Before actual travel takes place, authorized corporate person
links the employee’s ProxyEMVPay travel card to one of the REAL underlying corporate travel card account PANs (i.e. cost center)
3D Secure is used to authenticate the authorized corporate person and prove 'ownership' of the REAL corporate travel card PAN
Authorized corporate person sets the spending parameters (e.g. Maximum Spending Allowance, Maximum Linking Time Period, Maximum Number Of Transactions)
All transactions made by the employee’s ProxyEMVPay corporate card are authorized from the REAL corporate travel card account (i.e. cost center), which is linked to the employee’s PEP travel card
For Corporate Card Provider
full EMV compatibility and security
Simplicity and cost-effectiveness of issuance
easy replacement if lost or stolen
full risk control (ProxyEMVPay card is automatically de-linked from the underlying funding corporate travel card account when any of the spending restrictions are exceeded)