MasterCard is upgrading its global authorisation processing platform to enable its customer banks around the world to process authorisation transactions via a single, common interface.
This means that transactions will receive initial approvals through a single connection point via a standardised system, offering banks a simplified, faster process and increased global capabilities.
W Roy Dunbar, president of MasterCard global technology and operations, says the upgrade will make it easier, for example, for banks in say, Britain or Brazil to expand their card operations into Dallas or Dubai.
"Banks also will be able to pilot innovative, breakthrough payment technologies like SecureCode, PayPass and Chip/PIN cards without having to go through the trouble of making substantial changes to their own infrastructure to test these technologies," adds Dunbar.
When this roll out is complete, MasterCard can integrate these new technologies on behalf of banks until the volume of activity warrants investment by the bank to provide the service itself.
Central to the upgrade are two main changes - first MasterCard already has finalised new, standardised rules and capabilities for authorising a payment card transaction. Second, the transition will enable the enhancement of standard "intelligent edge devices" that exist locally at partner banks. These devices allow transactions to be managed at the edge of the network instead of requiring centralised processing through MasterCard's own systems.
MasterCard says the 'intelligent edge devices' will enable it to process transactions rapidly and reliably and since the device is located at the bank customers' sites, the company can process transactions even in the event of an emergency that results in a complete outage of the telecommunications backbone network.
As well as standardising the authorisation interface globally, MasterCard says this upgrade will also provide a consistent approach for managing local customisation of transaction rules.
"Through this standardised global authorisation platform, banks that have or are planning to have global extensions will be able to better aggregate and analyse transaction information," says Dunbar. "Our platform then enables banks to communicate better, as well as to customise transaction rules locally, such as when banks need to adjust processing to comply with local business regulations and practices."
The global authorisation platform is scheduled to be operational by late 2007, with all banks transitioned by late 2009.