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Laws & Regulations
BSMV stands for Banking and Insurance Transaction Tax, levied on banking and insurance transactions. This post explains how it applies to payment institutions and e-money institutions under Expense Taxes General Communiqué No. 91, with an example.
Credit Card
Although debit cards and credit cards look similar in appearance, there are fundamental differences between them, from cash advances to installments and security.
Credit Card
iCVV stands for Integrated Circuit Card Verification Value. To prevent fraud, it is a CVV value generated similarly to the card's track data and stored on the card's chip. Visa uses the term iCVV; MasterCard and American Express use their own equivalents.
Clearing
The Domestic Clearing and Settlement System (YTH) settles and clears transactions between two banks when a card from one bank is used at another bank's POS or ATM. Participants submit records that are cleared daily and multilaterally netted and reconciled.
Merchant & POS
Not Onus is a payment systems term meaning "Not On Us": a situation where the card-issuing bank and the POS/ATM (acquiring) bank differ. Such transactions are settled through clearing between the two banks.
Merchant & POS
Banks check merchants against a termination list before issuing a POS device. Learn the main reasons, such as counterfeit card acceptance, excessive chargebacks, and fraud, that can lead a bank to terminate a merchant agreement.
Online & Authorization
In EMV, data is stored in Tag-Length-Value (TLV) format, and it is carried between the card, the POS terminal, and the authorization system in this same format. This post lists every EMV Tag, its type, and its description.
Payment Systems
How do banks fund so many points, bonuses, and discounts? This post explains the credit card profitability model: merchant commissions, interchange, interest income, installments, and why campaigns are an investment in transaction volume rather than a cost.
Merchant & POS
Payment and e-money institutions' commissions were first subject to VAT, but since their work resembles banking, BSMV was debated. Expenditure Taxes General Communiqué No. 91 settled the question.
Credit Card
Mir means World and Peace. It is a national payment system established by a law adopted by the Central Bank of Russia on 1 May 2017. It is currently accepted mostly by Russia-based companies, but acceptance is gradually spreading.
Payment Systems
BKM Payment Gateway is the general name for platforms that let government institutions accept card payments through BKM as intermediary. For the first time, SGK and e-Government title deed payments can be made with all banking cards.
ISO 8583
We covered the ISO 8583 basics in an earlier article. This post explains the ISO 8583 message structure in detail: every ISO 8583 message consists of three main parts - the MTI (Message Type Indicator), the Bitmap, and the Data Elements.