Enterprise Operations Manual

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This document will encompass all levels of the operations of the TarjetaGlobal Card. This document will serve as both an external and internal document designed to provide each entity involved in the e-Global Network operations with the required knowledge and reference to conduct related business activities.

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Enterprise Operations Manual

  1. 1. TarjetaGlobal “Electronic Remittance Card” Enterprise Manual BY ORLANDO MORENO OMORENO@HOTMAIL.COM 408.656.2498 APRIL 15, 2002
  2. 2. EGN ENTERPRISE OPERATIONS Table of Contents BY................................................................................................................................................1 ORLANDO MORENO...................................................................................................................1 OMORENO@HOTMAIL.COM......................................................................................................1 408.656.2498...............................................................................................................................1 ....................................................................................................................................................2 1.INTRODUCTION.......................................................................................................................9 1.1. Background of EGN..............................................................................................................9 2.GLOBAL MONEY TRANSFER SYSTEM (GMTS)..................................................................10 1.2. GMTS Core Functions........................................................................................................10 1.3. network switch topology....................................................................................................12 2. E-Global management and controls .....................................................................................13 2.1. Overview ............................................................................................................................13 Core Enterprise Services..........................................................................................................13 Functional Areas of Responsibility............................................................................................14 3. TarjetaGlobal Electronic Remittance Card.............................................................................17 3.1. Overview............................................................................................................................17 3.2. CARD Number Structure and ASSIGNMENT ...................................................................17 3.3. TarjetaGlobal Card Requirements.......................................................................................19 4. EGN Enterprise Operations....................................................................................................24 4.1. GMTS Operations................................................................................................................24 4.2. GMTS RECONCILIATION PROCESS................................................................................26 Enterprise Operations Manual v1.0 Revised 5-11-02  2 of 90 omoreno@hotmail.com 408.656.2498
  3. 3. EGN ENTERPRISE OPERATIONS 3.MONEY REMITTANCE OPERATIONS ..................................................................................27 4.3. OVERVIEW: The Tarjeta Global System is designed to capture financial service information through various means to be forwarded to e-Global Network’s GMTS. ..................27 4.4. INTEGRATION: Each Money Remittance Company (MRC) is responsible for integrating its proprietary information technology program to EGN’s GMTS. Each MRC will comply with the standards and provisions as prescribed by the following Standard Operating Procedure. ........27 4.5. US MONEY REMITTANCE HEADQUARTERS (MRC HQ) MANAGEMENT.....................28 4.6. MRC HQ Management to conduct weekly and Monthly meetings to spot, analyze and correct and discrepancies in funds transfer activities within the organization.............................28 4.TARJETAGLOBAL CARD OPERATIONS...............................................................................29 4.7. Authorization Overview.......................................................................................................29 4.8. Clearing and Settlement Overview.....................................................................................31 4.9. Cardholder Exception Processing.......................................................................................33 .................................................................................................................................................39 4.10. Daily Reports.....................................................................................................................40 5.CARD MANAGEMENT SYSTEM............................................................................................43 4.11. CMS Operations................................................................................................................43 4.12. Daily Reports....................................................................................................................44 6.CARD MANUFACTURING AND PERSONALIZATION...........................................................46 4.13. Overview...........................................................................................................................46 4.14. CMIP Operations...............................................................................................................46 4.15. Daily Reports.....................................................................................................................46 7.SETTLEMENT BANK..............................................................................................................47 4.16. Overview...........................................................................................................................47 4.17. Operations.........................................................................................................................47 Enterprise Operations Manual v1.0 Revised 5-11-02  3 of 90 omoreno@hotmail.com 408.656.2498
  4. 4. EGN ENTERPRISE OPERATIONS 4.18. Operational Responsibilities..............................................................................................48 8.ATM/POS SWITCH.................................................................................................................49 9. PROBLEM ESCALATION .....................................................................................................50 4.19. Overview...........................................................................................................................50 10.SYSTEM ADMINISTRATION................................................................................................51 4.20. OVERVIEW.......................................................................................................................51 4.21. User Administration and Maintenance...............................................................................53 4.22. Resources Administration and Maintenance.....................................................................55 5. financial management SYSTEM adminstration......................................................................56 5.1. OVERVIEW: EGN Financial Management System Functionality and Capabilities: The EGN Financial System is designed to be a centralized, secure and real-time automated system for all levels of users. The system will have a multitude of financial functions and capabilities. The EGN Financial System is a modern cash management and accounting system that enables a variety of other external financial systems to participate in the EGN network. Specifically, the EGN Financial System will serve as a:.......................................................................................56 5.2. Financial Network: The e-Global Network (EGN) financial system consists of four (4) distinct and stand-alone financial entities. Each entity possesses a system that is independently operated by their respective organizations. ...............................................................................56 5.3. They are:.............................................................................................................................56 5.4. Database Structure: The EGN financial system is comprised of four (4) different and co- relational databases. The co-relating databases are attributed to serving as a particular financial entity’s information repository. The databases are further detailed into Daily and Weekly sub-sets. ......................................................................................................................56 5.5. Financial Entities and Inter-relationships. The following relationships exist within the Financial Network’s immediate domain......................................................................................56 5.6. EGN Responsibilities and Roles..........................................................................................56 5.7. The EGN Financial Management System will have direct communication (connectivity) links with each of the financial entities electronic systems..................................................................57 6. system CONTROLS AND ALERT CONDITIONS...................................................................57 Enterprise Operations Manual v1.0 Revised 5-11-02  4 of 90 omoreno@hotmail.com 408.656.2498
  5. 5. EGN ENTERPRISE OPERATIONS 6.1. BUSINESS LOGIC:.............................................................................................................57 6.2. INTERNAL CONTROLS AND ALERTS: ............................................................................57 6.3. EXTERNAL CONTROLS:...................................................................................................58 6.4. RED FLAG ACTIVITY (CONDITIONS) AND ALERTS:.......................................................58 6.5. Overview: The Tarjeta Global System shall provide access and other forms of reports to enterprise participants. The reporting periods and ...................................................................59 6.6. DAILY FINANCIAL SUMMARY REPORT (real time)..........................................................59 6.7. provided via GMTS (Financial Management System FMS) program...................................59 6.8. Weekly Financial Summary Report.....................................................................................59 6.9. provided via GMTS (Financial Management System FMS) program...................................59 6.10. Monthly Financial Summary Report...................................................................................59 6.11. Report Access and Publication .........................................................................................59 6.12. The EGN Financial Management System will comply with all applicable local, state and federal regulations and laws.......................................................................................................60 6.13. The EGN Financial Management System will be designed and ultimately comply with all Generally Accepted Accounting Principles.................................................................................60 6.14. The EGN Financial Management System will comply with all foreign requirements..........60 6.15. Management will conduct an official internal audit of the EGN Financial System once a quarter to ensure all conditions and business rules are properly functioning.............................60 6.16. Management will conduct an official external audit of the EGN Financial System to be conducted by a third party auditor to ensure that all conditions and business rules are properly functioning. ...............................................................................................................................60 6.17. No changes will be made to the core database structure, business logic, business rules, Standard Operating Procedures and Operations Manual. without the expressed written permission from the Chief Executive Officer (CEO), Chief Technology Officer (CTO) and Chief Financial Officer (CFO)...............................................................................................................60 6.18. All changes will be properly documented in this document. New changes will be denoted through the use of a bold font type set and the nomenclature of (CHANGE #, DATE) next to the amended section........................................................................................................................60 Enterprise Operations Manual v1.0 Revised 5-11-02  5 of 90 omoreno@hotmail.com 408.656.2498
  6. 6. EGN ENTERPRISE OPERATIONS 6.19. All changes will be documented in a separate Appendix dedicated to listing all changes made on the system...................................................................................................................60 6.20. The CEO is ultimately responsible for the proper management and control of the entire EGN system...............................................................................................................................60 6.21. The CTO is fully responsible for the maintenance and structural integrity of the information data programs and physical hardware........................................................................................60 6.22. The CFO is fully responsible for the operation and accuracy of all financial activities conducted within the EGN Financial System..............................................................................60 7. USER MANUAL: ....................................................................................................................60 7.1. oVERVIEW: This section shall be used as the basis for conducting all transactions and related activities involved in the Tarjeta Global process. These procedures and practices are all in abidance to the Operating Rules and Standards as set forth by the preceding sections........60 7.2. Scope: This section will cover all aspects of the following entities involvement directly and indirectly in conducting a Tarjeta Global transaction..................................................................60 7.3. CLIENT (SENDER) REMITTANCE LEVEL.........................................................................61 7.4. AGENT SERVICES LEVEL.................................................................................................61 7.5. E-GLOBAL NETWORK COMPANY....................................................................................62 7.6. PROSA NETWORK.............................................................................................................62 7.7. CarD MANAGEMENT SYSTEM..........................................................................................62 7.8. SYC to handle all Card Management Services...................................................................62 7.9. BANK NETWORK...............................................................................................................63 7.10. card manufacturer.............................................................................................................63 7.11. TARJETA GLOBAL ..........................................................................................................63 7.12. DISTRIBUTION CENTERS...............................................................................................63 7.13. BENEFICIARY COLLECTION LEVEL...............................................................................64 8. INTEGRATION MANUAL ......................................................................................................64 ...................................................................................................................................................64 Enterprise Operations Manual v1.0 Revised 5-11-02  6 of 90 omoreno@hotmail.com 408.656.2498
  7. 7. EGN ENTERPRISE OPERATIONS MONEY REMITTANCE TRANSACTION DATA.........................................................................64 DATA DEFINITION DOCUMENT...............................................................................................64 E-GLOBAL NETWORK, INC......................................................................................................65 9. apPendix a: PROCESS OVERVIEW....................................................................................83 Enterprise Operations Manual v1.0 Revised 5-11-02  7 of 90 omoreno@hotmail.com 408.656.2498
  8. 8. EGN ENTERPRISE OPERATIONS PREFACE PURPOSE The purpose of this document is to develop and standardize the procedures, definitions and overall business rules to be used for operations of e-Global Network Inc.’s TarjetaGlobal Electronic Remittance Card. SCOPE This document will encompass all levels of the operations of the TarjetaGlobal Card. This document will serve as both an external and internal document designed to provide each entity involved in the e-Global Network operations with the required knowledge and reference to conduct related business activities. OBJECTIVES This document intends to provide users with a convenient and comprehensive document covering the enterprise processes. Specifically, this document will: o Provide users with a single source document for defining operational, financial and accounting activity related to the TarjetaGlobal Card. o Provide users with top-level entity relationship diagrams. o Provide users with functional flow-charting diagrams. o Provide users with detailed business process controls. o Provide users with various activities associated with the management of the e-Global Network (EGN) processing platform. DOCUMENT OWNERSHIP AND AUTHORIZATION Any changes to this document must be approved by Chief Executive Officer or Chief Operating Officer of EGN. Any changes to the technical specifications must be approved by Chief Technology Officer of EGN. Any recommendations for changes to this document must be submitted to Vice President Enterprise Systems. The VP Enterprise Systems is responsible for maintaining this document. Enterprise Operations Manual v1.0 Revised 5-11-02  8 of 90 omoreno@hotmail.com 408.656.2498
  9. 9. EGN ENTERPRISE OPERATIONS 1. INTRODUCTION 1.1. BACKGROUND OF EGN e-Global Network, Inc. (EGN), was formed in December of 1999. EGN offers a standardized and automated end-to-end electronic international remittance management platform for the money remittance market (the “Global Money Transfer System™” or “GMTS”). This includes the electronic capture, processing, routing, transaction settlement, switching, account reconciliation and reporting of transactions at all levels and stages of a remittance transaction. This technology platform allows to issue, distribute and manage a co-branded electronic remittance card product (the “Tarjeta Global™” or “Global Card”) for utilization by money remittance beneficiaries. This pre-funded electronic remittance card product can be utilized by the remittance beneficiaries to access funds at Automated Teller Machines (ATMs) and make purchases at Point-of-Sale (POS) terminals. EGN’s wholly owned subsidiary - Tarjeta Global de Mexico, S.A. de C.V., is incorporated under the laws of Mexico, and serves as the operating entity for all business conducted by EGN in Mexico. The EGN Enterprise Platform is composed of four functional areas: 1) The Core Technology, 2) The Enterprise Participants, 3) Remittance Channel Participants, and 4) Distribution Channel Participants. Core Technology: The Core Technology is the “engine” of the entire business enterprise, built by EGN, using the latest information technology software and hardware. It virtually operates every transactional process. The core technology, or Global Money Transfer System (GMTS), is a genuine three-tier client-server enterprise application, utilizing such products as Oracle’s® 8i Enterprise Edition relational database, Sun’s® Java™ and Enterprise Java Bean™ (EJB), XML and HTML programming code, BEA Weblogic™ software package, high-end Sun® servers and Cisco® and Netscreen® network devices. The core technology serves as the key foundation and technical building block to all automated services associated with the platform. Enterprise Participants: The Enterprise Participants represent the next layer of integral components of the EGN enterprise. The participants were chosen for their domain expertise, industry credibility and ultimately their specialized service. The group consists of a financial switch, a settlement bank, a card management processor and a manufacturer and distributor of cards. Communication components serve as the physical telecommunication conduit of the enterprise system. Remittance Channel Participants: The Remittance Channel Participants are EGN’s primary client base and front-end operational group. This group provides EGN with direct remittance transactional volume. Distribution Channel Participants: The Distribution Channel Participants represent the back-end operational group in the enterprise model in Mexico. This group provides end-users of the Tarjeta Global system with consumer access points for card issuance and utilization. Enterprise Operations Manual v1.0 Revised 5-11-02  9 of 90 omoreno@hotmail.com 408.656.2498
  10. 10. EGN ENTERPRISE OPERATIONS 2. GLOBAL MONEY TRANSFER SYSTEM (GMTS) GMTS is an electronic financial transaction switch and management system that facilitates and enables efficient end-to-end processing of money remittance transactions between U.S.-based money remittance companies and Mexico-based banks, financial institutions and commercial enterprises that distribute beneficiary funds. As a transaction switch, GMTS creates a network of entities that transparently communicate transactional data and information between different systems in a standardized yet flexible format and interface. As a transaction router, GMTS efficiently routes standardized transaction information from source to destination in a secure and reliable network environment for processing and settlement. As a transaction management system, GMTS is capable of handling the most critical aspects of an end-to-end money remittance transaction: initiation, capture, processing, execution, settlement, reconciliation and reporting. 1.2. GMTS CORE FUNCTIONS GMTS’s core functions are designed to manage activities and entities that are part of the money remittance process. GMTS is composed of the following management subsystems: Sender Management Subsystem – manages data and information pertaining to an individual money sender. Beneficiary Management Subsystem – manages data and information pertaining to an individual money beneficiary or recipient. Transaction Processing Subsystem – processes the money remittance transaction including; capture, validation, compliance-checking, routing, status monitoring, execution, settlement and completion. Transaction Reporting Subsystem – creates detailed and customized reports of transaction activity. Transaction Settlement Subsystem – allows to automate the settlement process between all participating entities including calculation of transaction settlement fees that are due from external entities based on per transaction usage of the GMTS. System Administration Subsystem – enforces security and integrity of transactions processed by the system. Activity Analysis Subsystem - Validation and compliance of each transaction processed within GMTS. Enterprise Operations Manual v1.0 Revised 5-11-02  10 of 90 omoreno@hotmail.com 408.656.2498
  11. 11. EGN ENTERPRISE OPERATIONS Global Money Transfer System CUSTOMERS System Components & Framework Remittance Companies, Remittance Companies, TARGET Remittance Companies, Remittance Companies & Banks, Financial Commercial Enterprises, Beneficiaries Agents Institutions Retail Establishments PRODUCT & OFFERINGS GMTS Money Remittance Money Remittance Money Remittance SERVICE Card Issuance and Transaction Manager & Company Transaction Payment Management Management System Switch Management System System Activity Analysis SUbsystem Beneficiary Management Transaction Processing Transaction Settlement System Administration Transaction Reporting Sender Management GMTS SUBSYSTEM Subsystem API Subsystem API Subsystem API Subsystem API Subsystem API Subsystem API COMPONENTS API CORE Transaction Switching Transaction Management Stored-Value Card Management FUNCTIONALITY Global Money Transfer System (GMTS) Enterprise Operations Manual v1.0 Revised 5-11-02  11 of 90 omoreno@hotmail.com 408.656.2498
  12. 12. EGN ENTERPRISE OPERATIONS 1.3. NETWORK SWITCH TOPOLOGY Proposed Switch Topology Remittance Company / E-Global Network / PROSA/ Distribution Agent Agent ATM ATM Agent POS Remittance Acquirer Company (Bank) TarjetaGlobal Sponsor Agent Remittance Acquirer sit Bank Se ATM Company po ttle (Bank) De me nt E-Global PROSA GMTS Interchange Switch CarNet/Red Switch ti on Up da ri za Agent Remittance te tho Acquirer POS Company Au TarjetaGlobal (Non-Bank) Card Issuance & Management System Remittance Govenrement Company Agent ATM Agent Agent Office Office Estados Unidos Mexico Enterprise Operations Manual v1.0 Revised 5-11-02  12 of 90 omoreno@hotmail.com 408.656.2498
  13. 13. EGN ENTERPRISE OPERATIONS 2. E-GLOBAL MANAGEMENT AND CONTROLS 2.1.OVERVIEW The business enterprise is comprised of four integral elements, namely: Proprietary Technology (EGN), a world-class electronic banking interface network (PROSA), Money Collection Channels (US-based Money Remittance Companies) and Paying Distribution Channels (Mexican organizations). The EGN business model is founded on maintaining critical strategic business relationships with each of these vital business segments and creating automated efficiency in their interaction. Core Enterprise Services The core business service of EGN is the facilitation of cross-border money transfer by means of a proprietary internet-based funds management system. Fundamentally, the sending of money from one country to another is broken into two (2) logic flow paths. The first path being the Information Transaction Flow: in this path, certain information related procedural, regulatory and business operations must take place in order to properly initiate and complete a point-to-point money transfer. The second logic path is the Monetary Transaction Flow: in this path, the physical delivery of funds must also follow a set of procedural, regulatory, banking and business operations. The critical aspect in these parallel logic paths is to properly match the delivery of funds in a timely, secure and convenient manner. Logic Diagrams: REMITTANCE COMPANY $ TRANSFER MONEY TO ACCOUNT TRANSACTION SPONSOR BANK ATM/ REMITTANCE EGN AGENT BRANCH/ SENDER COMPANY PROSA BENEFICIARY HQ SYSTEM POS/ OTHER EGN GENERATES DAILY, MX BANK CONFIRMS WEEKLY AND MONTHLY TRANSFER REPORTS EGN EGN DATA - OPERATIONS REPORT CAPTURE/ - DATA STORAGE CAPTURE/ SCREEN CREATES MX BANK ACCOUNT - TRANSACTION CREATES BI ACCOUNT AND SCREEN AND VALIDATES TRANSACTION CENTER VALIDATES TRANSACTION INFORMATION TRANSACTIONAL FLOW EGN MAINTAINS DAILY COMPANY PAYSOUT CASH-ASSET ACCOUNT WEEKLY $ FEES PROSA SENDER REMITS MONEY AGENT REMITS MONEY TO TO AGENT REMITTANCE COMPANY SPONSOR EGN BANK BANK $ REMITTANCE EGN ATM/ AGENT SENDER COMPANY BRANCH/ BENEFICIARY HQ SYSTEM OTHER MEXICAN REFUNDS BANK $ CANCELLATIONS OR REFUNDS COMPANY DEPOSITS REMITTANCE TRANSACTIONS CANCELLATIONS OR REFUNDS TO MEXICO BANK WITHIN 24 HOURS US BANK MONETARY TRANSACTIONAL FLOW Enterprise Operations Manual v1.0 Revised 5-11-02  13 of 90 omoreno@hotmail.com 408.656.2498
  14. 14. EGN ENTERPRISE OPERATIONS Functional Areas of Responsibility The EGN enterprise will specifically manage the inter-relationships in the following Company functional areas of responsibility: 1) Operational (Enterprise Systems) Management 2) Core Technology 3) Financial Management 4) Network Technology Operational Management Sender Deposit Agent Core Technology Information Funds Financial Management Flow Flow Data Data Synchronization e-Global Network Money Global Money Remittance TarjetaGlobal Transfer System Company DataBase Account & Deposit Funds Card Creation Data Data Synchronization Synchronization Creates initial Bank NIP (PIN) TarjetaGlobal DataBase Create Deposit Funds Transaction Number Data Synchronization Distribution PROSA Network Network Channel Network Technology Payout Payout Payout Beneficiary Beneficiary Beneficiary Paying ATM POS Outlet Enterprise Operations Manual v1.0 Revised 5-11-02  14 of 90 omoreno@hotmail.com 408.656.2498
  15. 15. EGN ENTERPRISE OPERATIONS Operational (Enterprise Systems) Management: EGN will serve as the overall Enterprise management entity. All aspects pertaining to conducting EGN services will fall under the supervision of the Company’s Chief Operating Officer and this individual will be direct all operations in the U.S. and Mexico. This individual serves as the functional manager and will be tasked to ensure the entire Enterprise is operating within the provisions and guidelines of the Standard Operating Procedures (SOP). Ultimately, EGN is accountable for all operational issues and practices within the organization. Among the key areas of Operational Responsibilities are: 1) Operational Command and Control 2) Network Operating Center Operations 3) Call Center Operations 4) Integration Activities 5) Contingency Management Core Technology: The Chief Technology Officer is solely responsible for the development, implementation and institution of the Core Technology Product and Service capabilities throughout the Enterprise participants. EGN’s Core Technology, developed using state-of-the-art technologies, will adhere to the strictest design standards, engineering specifications and standardized certifications such as ISO and IEEE protocols. The Core Technology was specifically built as a proprietary software application with open architecture software design features that enable it to be fully scalable, universally compliant and easily deployable. Among the key areas of Core Technology responsibilities are: 1) Implementation 2) Standardization 3) Maintenance 4) Upgrade and Trouble-shooting 5) New Product Development Financial Management: The Chief Financial Officer is solely responsible for the development, implementation and institution of all financial activities of the Tarjeta Global System. EGN has developed a financial business model to conduct all money transfer activities. In this capacity, EGN will be primarily responsible for monitoring, tracking and handling all financial transactions between the required financial entities. Specifically, EGN will be tasked to constantly monitor the transaction activities for financial compliance with the provisions and guidelines of the Standard Operating Procedure (SOP) and reconcile monetary and information flow. The Financial SOP outlines the specific procedures for every type of financial service capability. Among the key areas of Financial Management responsibilities are: 1) Transaction Monitoring 2) Financial Settlement 3) Account Management Enterprise Operations Manual v1.0 Revised 5-11-02  15 of 90 omoreno@hotmail.com 408.656.2498
  16. 16. EGN ENTERPRISE OPERATIONS 4) Collections 5) Financial Reporting 6) Card Management Network Technology: The Vice-President of Enterprise Systems will be primarily responsible for ensuring that Enterprise participants all adhere to the set protocols and requirements of the PROSA network, Card Management System and Card Manufacturer with respect to the proper operational configuration. EGN shall jointly develop with all enterprise participants a set of procedures and guidance requirements within the Standard Operating Procedure (SOP). Among the key areas of Network Technology responsibilities are: 1) Network Connectivity and Uptime 2) Network Reliability and Security 3) Network Redundancy and Back-up Enterprise Operations Manual v1.0 Revised 5-11-02  16 of 90 omoreno@hotmail.com 408.656.2498
  17. 17. EGN ENTERPRISE OPERATIONS 3. TARJETAGLOBAL ELECTRONIC REMITTANCE CARD 3.1. OVERVIEW The TarjetaGlobal Electronic Remittance Card serves money remittance beneficiaries as a flexible medium for receiving funds at Automated Teller Machine (ATM) and Point-Of-Sale (POS) locations. TarjetaGlobal Card is a pre-funded electronic remittance card. 3.2. CARD NUMBER STRUCTURE AND ASSIGNMENT Each card is assigned a unique 19-digit account number. This account number (Primary Account Number or PAN) is used to reference all transaction activity at the financial switch. 2.1.1.Card Number and Prefix The PAN consists of 6-digit unique Issuer Identification Number (IIN or BIN), 4-digit range, 8-digit account number, and 1 digit check sum. A combination of the IIN/BIN and range is a Prefix. Example: BBBBBBRRRRnnnnnnnnnC |___________| ==> B+R = Prefix Where, B- BIN R - range n - account number C -check sum Each remittance company is assigned a unique Prefix that is used to capture and route remittance transactions within GMTS. The same Prefix is used to issue cards, processed and settled ATM/POS transactions. 2.1.2.Standard Prefix EGN is assigned a national (Mexico) BIN/IIN. This BIN (58877120) is recognized at the national ATM/POS switch The Standard Prefix is 58877120XX, where XX is a Program ID assigned by EGN’s Enterprise Systems. 2.1.2.1.Program ID Assignment A new Program ID is assigned by EGN’s Enterprise Systems. A unique ID is assigned for each remittance company or a new card program. Program ID Program Name Effective Date 00 Reserved 4/29/2002 01 Maniflo 4/30/2002 02 OrderExpress 4/30/2002 99 Reserved 4/29/2002 2.1.2.2.Prefix Restrictions The following Prefixes are restricted for use by EGN’s Engineering: Enterprise Operations Manual v1.0 Revised 5-11-02  17 of 90 omoreno@hotmail.com 408.656.2498
  18. 18. EGN ENTERPRISE OPERATIONS 588771200 588771299 Enterprise Operations Manual v1.0 Revised 5-11-02  18 of 90 omoreno@hotmail.com 408.656.2498
  19. 19. EGN ENTERPRISE OPERATIONS 3.3.TarjetaGlobal Card Requirements 2.1.3.TarjetaGlobal Card Graphic Standards 2.1.3.1.TarjetaGlobal Mark Rights e-Global Network, Inc. is the sole owner of the TarjetaGlobal brand mark and all trade uses, designation or registration owned or hereafter incorporated in the TarjetaGlobal brand mark. EGN have the final authority to require proper usage of the TarjetaGlobal Mark. 2.1.3.2.Standards for Positioning The TarjetaGlobal Mark must appear on the front of the card and should be positioned in the lower right corner. Fig. 3.3.1.2 2.1.3.2.1.Co-branding Cards If the TarjetaGlobal Mark must appear on the front of a card with another brand mark, the TarjetaGlobal Mark must appear in color and be at least the same size and no less prominent than the other logo marks. 2.1.3.3.Design Approval All card designs must be submitted for approval by EGN prior to printing. EGN’s Enterprise Systems will be responsible for issuing the approval. Any exceptions to this graphic standards must be approved by CEO or COO of e-Global Network, Inc. 2.1.3.4.TarjetaGlobal Card Graphics All TarjetaGlobal Cards must contain an approved TarjetaGlobal Mark. The graphics of all TarjetaGlobal Cards must comply with the specifications outlined in the TarjetaGlobal Graphic Standards. 2.1.3.4.1.TarjetaGlobal Mark The TarjetaGlobal Mark must be used on all TarjetaGlobal Cards (Fig. 3.3.2.). The TarjetaGlobal Mark consists of the TarjetaGlobal logotype and the G symbol. Enterprise Operations Manual v1.0 Revised 5-11-02  19 of 90 omoreno@hotmail.com 408.656.2498
  20. 20. EGN ENTERPRISE OPERATIONS The TarjetaGlobal Mark must be displayed in equal or greater prominence when compared to other network identifiers. TarjetaGlobal Mark Fig. 3.3.2 2.1.3.5.Card Quality Card stock may be purchased from any vendor subject to standards described in ISO 7813-1995. The standard for acceptance is described in ANS X4.16-1976. Any card issued under TarjetaGlobal Electronic Remittance Card program which in the sole judgment of EGN either fail to meet standards or function to the detriment of the EGN platform will be subject to re-issue upon the request by EGN. 2.1.3.6.Card Format All TarjetaGlobal Cards must conform to the ISO 7813-1995 Standards for embossing and encoding plastic as well as any other standards and specifications provided in this manual. 2.1.3.7.Card Embossing/Printing Requirements Each TarjetaGlobal card must have the card number fully embossed or imprinted on the face of the card. 2.1.3.8.Card Magnetic Stripe Requirements Each TarjetaGlobal card must have a magnetic stripe on the back and must be usable in all standard stripe card-reading devices Enterprise Operations Manual v1.0 Revised 5-11-02  20 of 90 omoreno@hotmail.com 408.656.2498
  21. 21. EGN ENTERPRISE OPERATIONS Each TarjetaGlobal card must have Track II data encoded. Track II of the magnetic stripe must contain the following: o The TarjetaGlobal Card Number assigned with accordance to ISO standards and this manual o An Expiration Date, which must specify an actual date after which date the card must cease to be valid. o Such other information as is required by the ISO and is specified in this manual. 2.1.3.8.1.Track I The content of the Track I data must conform to ISO 7813. Field Number Length Field Name 1 1 Start Sentinel (%) 2 1 Format Code (B) 3 19 PAN 4 1 Separator (^) 5 26 Cardholder Name 6 1 Separator (^) 7 4 Card Expiration Date (YYMM) 8 3 Service Code 9 5 Reserved Position Length 1 1 PVK Index 2-5 4 PVV 10 5 Discretionary Data 11 11 Reserved Position Length 1-2 2 Zero fill 3-5 3 PVC 6-7 2 Zero fill 8 1 Reserved 9-11 3 Zero fill 12 1 End Sentinel (?) 13 1 Longitudinal Redundancy Check (LRC) Track I Layout: % B Card Number ^ Cardholder Name ^ Discretionary Data Discretionary Data: Standard Placement in Discretionary Data Expiration Date YYMM Positions 1 - 4 Service Code SSS Positions 5 - 7 PIN Offset PPPP Positions 8 - 12 Card Verification Value CCC Positions 13 - 16 Discretionary Data: Enterprise Operations Manual v1.0 Revised 5-11-02  21 of 90 omoreno@hotmail.com 408.656.2498
  22. 22. EGN ENTERPRISE OPERATIONS Y Y M M S S S 0 0 0 0 0 P P P P P C C C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2.1.3.8.2.Track II Track II Layout: ; Card Number = Discretionary Data Field Number Length Field Name 1 1 Start Sentinel (%) 2 19 PAN 3 1 Separator (^) 4 4 Card Expiration Date (YYMM) 5 3 Service Code 6 5 PIN Verification Data 7 5 Discretionary Data 8 1 End Sentinel (?) 9 1 Longitudinal Redundancy Check (LRC) Discretionary Data: Standard Placement in Discretionary Data Expiration Date YYMM Positions 1 - 4 Service Code SSS Positions 5 - 7 PIN Offset PPPP Positions 8 - 12 Card Verification Value CCC Positions 13 - 16 Discretionary Data: Y Y M M S S S 0 0 0 0 0 P P P P P C C C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2.1.3.9.Card Signature Panel Every TarjetaGlobal card must contain a signature panel on the back of the card. 2.1.4.Cardholder Identification 2.1.4.1.Signature Identification The cardholder’s signature is the primary means of identifying the person presenting a TarjetaGlobal card at the point-of-sale (POS). The POS merchant is required to compare the signature on the transaction draft to the signature on the card’s signature panel. 2.1.4.2.Personal Identification Number (PIN) Transactions initiated at self-service (cardholder-operated) terminals require a PIN. The verification process begins when the cardholder enters a PIN at an ATM (automated teller machine) keyboard, or a PIN pad attached to a POS terminal. The PIN entered is encrypted, transmitted, decrypted and compared to a reference PIN available at EGN’s authorization system or EGN’s authorized third-party agent. Enterprise Operations Manual v1.0 Revised 5-11-02  22 of 90 omoreno@hotmail.com 408.656.2498
  23. 23. EGN ENTERPRISE OPERATIONS 2.1.5.TarjetaGlobal Card Security 2.1.5.1. Plastic Verification Code (PVC) EGN requires that every TarjetaGlobal plastic will be encoded with a Plastic Verification Code (PVC). The PVC is encoded on the Track I and Track II of the magnetic card. The PVC ensures that the content of the magnetic stripe is not altered. The PVC is generated using secret keys. The PVC computation uses the Data Encryption Standard (DES) algorithm defined by the National Institute of Standards and Technology (NIST). The following data elements are used to compute the PVC: o Primary Account Number (PAN) o Card expiration Code o Service Code 2.1.5.2.Plastic Verification Code 2 (PVC2) EGN requires that every TarjetaGlobal plastic will be issued with a Plastic Verification Code 2 (PVC2). The PVC2 is printed on the signature panel of the TarjetaGlobal card. The PVC2 ensures that the authorized cardholder is present at the point-of-sale. The POS merchant is required to provide the PVC2 value to the authorization center agent. The PVC2 is generated using secret keys. The PVC2 computation uses the DES algorithm. The following data elements are used to compute the PVC2: o Primary Account Number (PAN) o Expiration Date The PVC2 must be indent printed using the unique reverse-italic font. The PVC2 value must be printed in blue or any other color designated by EGN. PVC 2 Enterprise Operations Manual v1.0 Revised 5-11-02  23 of 90 omoreno@hotmail.com 408.656.2498
  24. 24. EGN ENTERPRISE OPERATIONS 4. EGN ENTERPRISE OPERATIONS 4.1.GMTS OPERATIONS 2.1.6.Overview GMTS is responsible for initiating and capturing transaction information from U.S. Money Remittance Companies and their network of agents. GMTS will route transaction information to the Card Management Processor and to an ATM switch. 2.1.7.Network and Computer Operations Center (NOC) The EGN NOC data center is a secured managed data center. The NOC is monitored on 24- hour/7-day basis. The NOC staff is highly experienced with using both automated and manual diagnostic and troubleshooting procedures on all enterprise hardware, software and telecommunication systems comprising the GMTS platform. 2.1.7.1.Network Monitoring Instant error detection and rapid, effective response to potential problems affecting remittance transactions and cardholder activity are the primary focus of the NOC staff. The GMTS network monitoring capability enables interactive troubleshooting by continually reviewing the status of all processes and attached devices in the system. NOC monitors for the following types of problems: o Line errors on the telecommunication network o Processor errors and status information o Network and program errors o Data processing cutoff windows o Reports generation and transmission 2.1.8.GMTS Global Settlement and Balancing GMTS global settlement and balancing is a process of settling and balancing with all participating entities. GMTS global settlement consists of the settlement process with Money Remittance Companies (MRC), TarjetaGlobal card transaction activity at ATM/POS networks, and the financial switch. 2.1.8.1.GMTS defines the cutoff time with MRCs at 10:59 PM PST 2.1.8.2.GMTS defines the cutoff time with CMP at 22:59 Mexico City Time 2.1.8.3.GMTS defines the cutoff time with the financial switch at 22:59 Mexico City Time Enterprise Operations Manual v1.0 Revised 5-11-02  24 of 90 omoreno@hotmail.com 408.656.2498
  25. 25. EGN ENTERPRISE OPERATIONS 2.1.9.Daily Reports EGN will be receiving the daily settlement reports from the switch and the card management system. EGN will be generating reports out of the GMTS system. 2.1.9.1.Transaction Account Activity Report The Transaction Account Activity report will list all transactions posted to a cardholder’s transaction accounts as a result of card activity. The report will be generated separately for each BIN (each MRC will be assigned a unique BIN). In addition, a cumulative total of all BINs will be provided at the end of the report. 2.1.9.2.Account Add Funds/Refund Report The Transaction Account Add Funds/Refund Report provides a record of the funds added or refunded on Stored Value cards. The report is divided into sections. Each section includes a listing of the Add Funds or Refund transactions performed for cardholders within a specific BIN. In addition, a cumulative total of all BIN for EGN will be provided at the end of the report. 2.1.9.3.Transaction Account Adjustment Report The Transaction Account Adjustment Report provides a record of all debit and credit adjustments performed on Stored Value cards. The report is divided into sections. Each section includes a listing of the Adjustment transactions performed for cardholders within a specific BIN. In addition, a cumulative total of all BIN for EGN will be provided at the end of the report. 2.1.9.4.Transaction Account Daily Balance Report The Transaction Account Daily Card Balance Report provides a summary of all Transaction Account activity for a given day. The report is divided into sections. Each section includes a total of the Transaction Account transactions performed for cardholders within a specific BIN by transaction category. In addition, a cumulative total of all BINs is provided at the end of the report. 2.1.9.5.Card Balance Expired Funds Report The Card Balance Expired Funds Report lists all expired cardholder account numbers that have had their balances transferred to an account designated as expired funds account. The report is divided into sections. Each section includes a listing of the cardholder accounts that have had expired funds transferred to an account designated for a specific BIN. In addition, a cumulative total of all BINs is provided at the end of the report. Enterprise Operations Manual v1.0 Revised 5-11-02  25 of 90 omoreno@hotmail.com 408.656.2498
  26. 26. EGN ENTERPRISE OPERATIONS 4.2.GMTS RECONCILIATION PROCESS 2.1.10.Settlement Manager Daily Reports 2.1.10.1.Funds Movement Report The Funds Movement Report identifies EGN's net settlement, including ATM transactions (POS transactions), adjustments, surcharges, and fees for all networks. These dollars are moved via transfers and can be settled as one lump sum or as separate entries. 2.1.10.2.Card Issuer Summary Report The Card Issuer Summary Repot summarizes the debit and credit transaction counts and amounts for all of TG cardholder activity. Lists activity for all transactions processed via the financial switch by transaction type, including subtotals and a grand total for all network activity. 2.1.10.2.1.Transaction count includes denied transactions. 2.1.10.3.Settlement Summary The Settlement Summary Report summarizes EGN's daily settlement and identifies that the settlement will be posted to the Master Account. The report also indicates any non-settled network activity, as a “memo” item, meaning that this "memo" amount may be settled at the latter time in a separate transaction. 2.1.10.4.Card Issuer Exception Report The Card Issuer Exception Report lists transaction detail for all of EGN's cardholder exception transactions. 2.1.10.4.1.Exception items consist of the following transaction types: 2.1.10.4.1.1.Suspect – transactions considered questionable by the authorization system. 2.1.10.4.1.2.Card retained – transactions that indicate a card was retained at the terminal, based on the response code. 2.1.10.4.1.3.Denied– transactions that are denied by the authorization system. 2.1.10.4.1.4.Reversal – transactions that are reversed either fully or partially. 2.1.10.5.Issuer Activity Report The Issuer Activity Report provides detail in cardholder number order for each of EGN's cardholder transactions that occur at ATM (POS) terminals. These transactions also appear on the Demand Deposit Activity and Savings Activity reports. 2.1.11.Adjustment Activity Reports The Adjustment Activity Report provides detail information for all adjustments identified by EGN through the Auto Reconciliation process and settled to the financial institution (Bank). The recon process identifies all transactions that are discrepancies between what was processed and settled by the switch to the sponsoring financial institution (Bank) and what was processed and cleared by the CMP processor to EGN. EGN conducts a recon with the switch (or participating networks) and balances back to the switch's (or networks’) activity daily. 2.1.11.1.Settlement Adjustment Activity Report The Settlement Summary Adjustment Activity Report summarizes the net debits and credits of aged off adjustment transactions settled to the sponsoring financial institution (Bank) by EGN. These totals also appear on the Funds Movement Report and must be used when balancing. Enterprise Operations Manual v1.0 Revised 5-11-02  26 of 90 omoreno@hotmail.com 408.656.2498
  27. 27. EGN ENTERPRISE OPERATIONS 2.1.11.2.Switch Adjustment Report The Switch Adjustment Report provides detail information for each incoming and outgoing adjustment that was routed through the switch. 2.1.11.3.Switch Adjustment Summary Report The switch Adjustment Summary Report summarizes the incoming and outgoing adjustments. These totals also appear on the Funds Movement Report and must be used when balancing. 2.1.11.4.Issuer Fee Report The Issuer Fee Report summarizes daily interchange fees that are assessed by the switch/network(s) to EGN/Bank for cardholder’s activity performed at ATM terminals. This report lists fees by transaction type including subtotals and a grand total. The total net fee amount must be used for balancing and can also be found on the Funds Movement Report. Daily fees assessed must be moved to the designated fee income/expense account. 3. MONEY REMITTANCE OPERATIONS 4.3.OVERVIEW: The Tarjeta Global System is designed to capture financial service information through various means to be forwarded to e-Global Network’s GMTS. 4.4. INTEGRATION: Each Money Remittance Company (MRC) is responsible for integrating its proprietary information technology program to EGN’s GMTS. Each MRC will comply with the standards and provisions as prescribed by the following Standard Operating Procedure. Enterprise Operations Manual v1.0 Revised 5-11-02  27 of 90 omoreno@hotmail.com 408.656.2498
  28. 28. EGN ENTERPRISE OPERATIONS 4.5. US MONEY REMITTANCE HEADQUARTERS (MRC HQ) MANAGEMENT 3.1.1.Each MRC shall conduct all Tarjeta Global activities as prescribed in this manual and the contractual service agreement. 3.1.2.EGN affiliated Money Remittance Company shall send all transactions through a designated connection between its respective information system and EGN’s GMTS. 3.1.2.1.MRC shall access GMTS and determine all transactions (Total Daily Funds Request). 3.1.3.MRC HQ to conduct daily managerial assessment of all agent activities 3.1.3.1.MRC HQ shall reconcile bank deposits with previous day’s funds transactions. 3.1.4.MRC HQ to make all Agent related decisions for granting funds transmissions. 3.1.5.MRC HQ Management to determine prior day’s Total Daily Funds Request to be deposited in Mexico Bank Accounts prior to 9:00 am each business day. 3.1.5.1.MRC HQ Management will review all reports and analyze financial position daily. 3.1.5.2.MRC HQ Management to deposit Foreign Currency into respective Banco Bital or E- Global accounts. 3.1.6.MRC HQ shall conduct daily audits of Agent and Processing Center Bank deposits. 3.1.7.MRC HQ Accounting Department to track and record all funds activities. 3.1.7.1.MRC HQ to provide weekly summary report of funds transfer activities. 3.1.7.2.MRC HQ Accounting Department to provide monthly summary report of all funds transfer activities. 4.6.MRC HQ Management to conduct weekly and Monthly meetings to spot, analyze and correct and discrepancies in funds transfer activities within the organization. Enterprise Operations Manual v1.0 Revised 5-11-02  28 of 90 omoreno@hotmail.com 408.656.2498
  29. 29. EGN ENTERPRISE OPERATIONS 4. TARJETAGLOBAL CARD OPERATIONS 4.7. AUTHORIZATION OVERVIEW Authorization is a process of approval or decline of a transaction initiated at the certified terminal. EGN requires the use of Personal Identification Number (PIN) to validate all cardholder transactions. It is anticipated that in the future GMTS will support non-PIN based (signature-based) transactions. EGN requires that all transactions with TarjetaGlobal card to be authorized by EGN’s Card Management System. The Card Management System may be hosted by EGN or an authorized third-party processor. TarjetaGlobal cards can be accepted at a) all ATMs processed by the designated financial switch, b) all PIN-activated POS terminals attached to the designated financial switch (require a PIN Pad), c) at the designated bank branches. 4.1.1.Transaction Matrix 4.1.1.1.ATM Transactions All ATM transactions are processed as 02XX messages (ISO8583 message type). 4.1.1.1.1.ATM Transaction Posting ATM transactions are processed on-line 4.1.1.1.2.ATM Transaction Fee Posting ATM transaction fees are processed on-line and batch. Transaction Type Fee Posting Comment Method ATM Withdrawal On-line Fixed amount Balance Inquiry On-line Fixed amount Decline – PIN - - Decline – Lost/Stolen Card - - Decline – Expiration Date Off-line Fixed amount Decline – Not Sufficient Funds Off-line Fixed amount Reversal - - PIN Change N/A N/A 4.1.1.2.POS Transactions (To be determined) (TBD) 4.1.2.Authorization Exceptions Enterprise Operations Manual v1.0 Revised 5-11-02  29 of 90 omoreno@hotmail.com 408.656.2498
  30. 30. EGN ENTERPRISE OPERATIONS EGN allows authorization requests exceeding the Available Balance on the Card Account. The Over-the-Balance-Amount must not exceed $5 p. (Effective April 15, 2002) 4.1.3.Negative Balances EGN does not allow carrying of Negative Balances on the Card Accounts. The Negative Balances will be reversed daily. Enterprise Operations Manual v1.0 Revised 5-11-02  30 of 90 omoreno@hotmail.com 408.656.2498
  31. 31. EGN ENTERPRISE OPERATIONS 4.8. CLEARING AND SETTLEMENT OVERVIEW Clearing is a process by which financial transactions are delivered from the acquiring institutions to EGN. Settlement is a process by which EGN and acquiring institutions in the financial switch settle for financial transactions resulting from cash withdrawals, purchases, reversals, credits, etc. EGN collects financial transaction information electronically. EGN settles all financial transactions daily via its settlement bank. 4.1.4.General Ledger Structure EGN will utilize the following chart of Accounts for the card issuance part of operations. C a r d I s s u e r G /L C / H L i a b i li ty C /H E x p e n s e C /H In c o m e C /H A d j. C /H A c c o u n t L o a d C /H S w itc h E x p e n s e C /H P ro c e s s o r E x p e n s e C /H S w itc h In c o m e 4.1.5.CARDHOLDER LIABILITY G/Ls 4.1.5.1.Cardholder Liability G/L EGN will maintain the Liability Account that will be used to load each individual cardholder account. This account must be compared to the total balance of the individual cardholder accounts on file. This should be done on a daily basis and the balance of this account should equal the balance of the total cardholder accounts. This account must also be unique for each MRC entity. 4.1.5.2.Cardholder Adjustment G/L This G/L will be used to temporarily store funds pending network adjustments. Once the adjustment is received into the Network Settlement Account for the TarjetaGlobal account, the settlement account will be debited and the Cardholder Adjustment G/L will be credited. A separate G/L should be opened for each MRC entity. 4.1.6.CARDHOLDER EXPENSE G/L 4.1.6.1.Cardholder Account Load Expense Fee G/L This G/L will be used to hold all fees charged by the sponsoring bank for each deposit or “load”. A separate G/L should be opened for each MRC entity. 4.1.6.2.Cardholder Switch Expense Fees G/L This G/L will be used to hold all fees charged by the acquiring networks of which the sponsor bank or the switch is a member. Enterprise Operations Manual v1.0 Revised 5-11-02  31 of 90 omoreno@hotmail.com 408.656.2498
  32. 32. EGN ENTERPRISE OPERATIONS A separate G/L should be opened for each MRC entity. 4.1.6.3.Cardholder Switch Expense ATM Withdrawal Fee G/L 4.1.6.4.Cardholder Switch Expense Balance Inquiry Fee G/L 4.1.6.5.Cardholder Switch Expense Decline PIN Fee G/L 4.1.6.6.Cardholder Switch Expense Decline Lost/Stolen Card Fee G/L 4.1.6.7.Cardholder Switch Expense Decline Expiration Date Fee G/L 4.1.6.8.Cardholder Switch Expense Decline NSF Fee G/L 4.1.6.9.Cardholder Switch Expense Reversal Fee G/L 4.1.6.10.Cardholder Switch Expense PIN Change Fee G/L 4.1.7.Cardholder Processor Expense Fees G/L This G/L will be used to hold all fees charged by the card management processor. A separate G/L should be opened for each MRC entity. 4.1.7.1.Cardholder Processor Expense ATM Withdrawal Fee G/L 4.1.7.2.Cardholder Processor Expense Balance Inquiry Fee G/L 4.1.7.3.Cardholder Processor Expense Decline PIN Fee G/L 4.1.7.4.Cardholder Processor Expense Decline Lost/Stolen Card Fee G/L 4.1.7.5.Cardholder Processor Expense Decline Expiration Date Fee G/L 4.1.7.6.Cardholder Processor Expense Decline NSF Fee G/L 4.1.7.7.Cardholder Processor Expense Reversal Fee G/L 4.1.7.8.Cardholder Processor Expense PIN Change Fee G/L 4.1.8.CARDHOLDER INCOME FEES G/L This G/L will be used to hold all income received as a result of service charging cardholder accounts for transaction fees or periodic service charges. A separate G/L should be opened for each MRC entity. 4.1.8.1.Cardholder Income ATM Withdrawal Fee G/L 4.1.8.2.Cardholder Income Balance Inquiry Fee G/L 4.1.8.3.Cardholder Income Decline Expiration Date Fee G/L 4.1.8.4.Cardholder Income Decline NSF Fee G/L 4.1.8.5.Cardholder Tax Fees G/L This G/L will be used to hold all taxes assessed as a result of service charging cardholder accounts for transaction fees or periodic service charges. A separate G/L should be opened for each MRC entity. Enterprise Operations Manual v1.0 Revised 5-11-02  32 of 90 omoreno@hotmail.com 408.656.2498
  33. 33. EGN ENTERPRISE OPERATIONS 4.9.CARDHOLDER EXCEPTION PROCESSING 4.1.9.Overview Cardholder Exception items generally result from two different sources: (i) identification of a processing or terminal error by the ATM/POS terminal operator during balancing and reconciliation, or (ii) identification of an error by the TarjetaGlobal Cardholder. 4.1.9.1.Cardholder Exception Types EGN recognizes four types of Cardholder Exception items. 4.1.9.1.1.Chargebacks TarjetaGlobal can initiate a Chargeback Request as a result of a TarjetaGlobal cardholder claim of error or to return an invalid Adjustment. 4.1.9.1.2.Representments Acquiring Banks can reject TarjetaGlobal’s Chargeback Request and to return an invalid Chargeback. 4.1.9.1.3.Adjustments Acquiring Banks can initiate Adjustments as a result of balancing or reconciliation error and Representments (to return a Chargeback from TarjetaGlobal). 4.1.9.1.4.Network Adjustments The Network (Switch) can initiate a Network Adjustments to correct a problem in exception processing that cannot be corrected by either TarjetaGlobal or Acquirer. 4.1.10.Cardholder Exception Processing 4.1.10.1.Cardholder Chargeback Processing A Chargeback is initiated for any of the following reasons Initiating a Chargeback Reason Chargeback Action Cardholder received no goods, services, or funds, but Chargeback – Credit Cardholder was charged for POS Transaction. Cardholder received less than was requested, but was Chargeback – Credit Cardholder charged for full amount of ATM Transaction request. Cardholder was charged multiple times for same ATM Chargeback – Credit Cardholder (or POS) Transaction. Cardholder received multiple reversals for same ATM Chargeback – Debit Cardholder (or POS) Transaction. The POS Transaction was reversed, but Cardholder Chargeback – Debit Cardholder received goods or funds. Enterprise Operations Manual v1.0 Revised 5-11-02  33 of 90 omoreno@hotmail.com 408.656.2498
  34. 34. EGN ENTERPRISE OPERATIONS Correcting Invalid Adjustment. Chargeback – Debit Cardholder (CR Adj) Chargeback – Credit Cardholder (DR Adj) 4.1.10.1.1.Cardholder Chargebacks for Unauthorized Transactions If in the process of receiving a cardholder dispute, the TarjetaGlobal Cardholder claims they did not perform the transaction or the card has been stolen, the claim is handled as Unauthorized or Fraud. No Chargeback can be initiated. The disputes for Unauthorized transactions will be processed by Call Center and submitted to EGN’s Operations. 4.1.10.2.Cardholder Chargeback Process The dispute will be received by Call Center. All disputes will be batched and submitted to the Sponsoring Bank for processing daily. The following information is required for each dispute: o PAN o Cardholder Name o Dispute Description/Reason o Amount Requested o Amount Disputed o Transaction Date 4.1.10.3.Cardholder Chargeback Procedures and Time Frames 4.1.10.3.1.Cardholder’s Time Frame TarjetaGlobal cardholders have up to 90 calendar days to report any problem from the time an ATM or POS transaction was conducted with their TarjetaGlobal card. 4.1.10.3.2.Sponsoring Bank Time Frame The Sponsoring Bank may take up to 15 calendar days to respond to the dispute. The Sponsoring Bank will send an email and fax to the designated fax machine number with detailed report on the accepted and denied claims. The funds for the accepted claims will be deposited into the Master Account the same day. 4.1.10.3.3.Resolving Chargebacks The Sponsoring Bank may reject the Chargeback Request. If the claim was rejected, then the Sponsoring Bank will submit the documentation supporting their decision to TarjetaGlobal. TarjetaGlobal will have up to 5 days to appeal this rejection. The Sponsoring Bank will respond to the appeal within 2 days. From this moment, TarjetaGlobal has up to 30 days to appeal this decision for the second time and it may up to 30 days for the Sponsoring Bank to review and respond to TarjetaGlobal (the 5/2/30 rule). Enterprise Operations Manual v1.0 Revised 5-11-02  34 of 90 omoreno@hotmail.com 408.656.2498
  35. 35. EGN ENTERPRISE OPERATIONS 4.1.11.Cardholder Adjustments Processing A TarjetaGlobal card will receive Adjustments from an Acquiring Bank for one of the following reasons. 4.1.11.1.Adjustment – Credit Cardholder The cardholder did not receive all or part of goods, services, or funds but the account was charges; or multiple debits were posted to the account for the same transaction; or there was a Settlement difference. 4.1.11.2.Adjustment – Debit Cardholder The cardholder received goods, services, or funds but was not charges for all or part of the transaction; or multiple credits were posted to the account for the same transaction, or there was a Settlement difference. 4.1.11.3.Good Faith Debit Adjustment The Acquiring Bank has identified a transaction for which the TarjetaGlobal Cardholder has not been charged and is requesting a good faith attempt at collecting the funds. Examples of accepted Good Faith Adjustments include debit Adjustments attempted no more than five (5) calendar days after the original transaction. 4.1.11.4.Network Adjustment An Adjustment initiated by the Network to correct an error in online or exception processing. EGN will review the Adjustment and if it is done correctly, then EGN will debit or credit the cardholder accordingly. 4.1.11.5.Invalid Adjustments An Adjustment is considered invalid if one of the following conditions exits: The Acquiring Bank is sending a debit Adjustment and the TarjetaGlobal Cardholder’s account has already been charged. Be sure that the adjustment does not offset a Settlement difference. The Acquiring Bank is sending a credit Adjustment and the TarjetaGlobal Cardholder’s account has not been charged. Be sure that the adjustment does not offset a Settlement difference. The Acquiring Bank is sending a debit Adjustment and the TarjetaGlobal Cardholder’s account has been closed. The Acquirer is sending a debit Adjustment and the TarjetaGlobal Cardholder’s account does not have sufficient funds to cover this debit Adjustment. The Acquiring Bank sends a debit Adjustment and cannot provide valid documentation to prove cash dispensed. Make sure to request the terminal documentation. To correct any of the above conditions, EGN can send a Chargeback to the Acquirer. EGN will indicate in the ‘Comments’ Section of the Chargeback the reason for reversing the original Adjustment. EGN will have sixty (60) calendar days from the Adjustment date to initiate a Chargeback. Enterprise Operations Manual v1.0 Revised 5-11-02  35 of 90 omoreno@hotmail.com 408.656.2498
  36. 36. EGN ENTERPRISE OPERATIONS Adjustment Reasons Reason Exception Type Cardholder received no goods, services, or funds but was Adjustment – charged for the transaction. Credit Cardholder Cardholder received less than was requested but was Adjustment – charged for full amount of the transaction. Credit Cardholder Cardholder was not charged but received goods, Adjustment – services, or funds. Debit Cardholder Cardholder was charged multiple times for the same Adjustment – transaction. Credit Cardholder Cardholder received multiple Reversals for the same Adjustment – transaction. Debit Cardholder Cardholder received more than was requested but was Adjustment – debited for original transaction amount. Debit Cardholder or Good Faith Debit Adjustment 4.1.12.Processing Cardholder Representments By representing the Chargeback the Acquiring Bank is indicating that research has proven that the transaction did occur and that the cardholder claim is invalid. The Acquiring Bank will be prepared to provide documentation substantiating the Representment to EGN. EGN must then determine how to resolve the claim with the TarjetaGlobal Cardholder. Under no circumstances should the TarjetaGlobal Cardholder be directed back to the Acquirer for further action on the claim. 4.1.13.Acceptable Documentation Any of the following is considered acceptable documentation as long as it meets the terminal documentation requirements listed below: o ATM audit tape (when available); o Scan or copy of electronic journal item; o ATM audit trail (when audit tape or electronic journal item is not available); or, o System audit trail (when none of the above documents are available). 4.1.13.1.Terminal Documentation Requirements The terminal documentation must include: o Amount of transaction; Enterprise Operations Manual v1.0 Revised 5-11-02  36 of 90 omoreno@hotmail.com 408.656.2498
  37. 37. EGN ENTERPRISE OPERATIONS o Transaction date and time; o Type of transaction; o Account accessed; o Complete TarjetaGlobal Card number (as it is encoded in Track II); o Local terminal identifier; o Transaction trace number (same as is sent in request messages to Switch); and, o Amount of Convenience Fee, if applicable. In addition, the terminal documentation should contain, if available, information as to actual terminal status and/or terminal malfunctions. It is acceptable to provide two (2) pieces of documentation, e.g., a terminal audit trail and a terminal error report, in order to meet the minimum requirements for documentation. 4.1.14.Record Retention EGN will keep a record for each TarjetaGlobal Transaction for a minimum of two (2) years or for such longer period as is required by applicable federal, state or local law, rule or regulation. Beyond two (2) years, any of the following reports would be an acceptable record of the transaction: o Internal reports; o Processor reports; o TarjetaGlobal Settlement reports. 4.1.15.Deposit Dispute Resolution Procedures EGN may receive a dispute on the deposit transaction from a TarjetaGlobal cardholder/beneficiary. EGN may initiate a deposit Adjustment for the following reasons: Chargeback Reason Chargeback Type To Dispute a deposit correction Adjustment – Deposit Correction to Credit Cardholder adjustment Adjustment – Deposit Correction to Debit Cardholder To dispute a deposit amount Adjustment – Deposit Correction to Credit Cardholder Adjustment – Deposit Correction to Debit Cardholder 4.1.15.1.Processing Deposit Exceptions EGN will initiate Request for Correction to handle a TarjetaGlobal Cardholder dispute or to reverse an incorrect Adjustment. MRC has two (2) calendar days from receipt of the Request for Correction to research and respond. Enterprise Operations Manual v1.0 Revised 5-11-02  37 of 90 omoreno@hotmail.com 408.656.2498
  38. 38. EGN ENTERPRISE OPERATIONS When research is completed MRC will initiate Adjustment to credit or debit the account. If MRC is indicating that research has proven that the transaction did occur and that the cardholder claim is invalid, then MRC must provide documentation substantiating their research. EGN can use this documentation to inform the Cardholder why the claim is declined. Enterprise Operations Manual v1.0 Revised 5-11-02  38 of 90 omoreno@hotmail.com 408.656.2498
  39. 39. EGN ENTERPRISE OPERATIONS 4.1.16.Exception Reason Table Exception Reason Table Exception Code Exception Type Exception Reason 1CR Adjustment Adjustment to Credit Cardholder 2DR Adjustment Adjustment to Debit Cardholder 3CR Adjustment Deposit Correction to Credit Cardholder 4DR Adjustment Deposit Correction to Debit Cardholder 5DR Good Faith Adjustment Good Faith Adjustment to Debit Cardholder 13CR Chargeback Deposit Correction to Credit Cardholder 14DR Chargeback Deposit Correction to Debit Cardholder 15CR Chargeback Chargeback to Credit Cardholder 16DR Chargeback Chargeback to Debit Cardholder 20DR Representment Representment to Debit Cardholder 21CR Representment Representment to Credit Cardholder Enterprise Operations Manual v1.0 Revised 5-11-02  39 of 90 omoreno@hotmail.com 408.656.2498
  40. 40. EGN ENTERPRISE OPERATIONS 4.10.DAILY REPORTS EGN will be receiving the daily settlement reports from the switch and the card management system. EGN will be generating reports out of the GMTS system. 4.1.17.Daily Settlement Reports 4.1.17.1.Transaction Account Activity Report The Transaction Account Activity report will list all transactions posted to a cardholder’s transaction accounts as a result of card activity. The report will be generated separately for each Prefix (each MRC will be assigned a unique Prefix). In addition, a cumulative total of all Prefixes will be provided at the end of the report. 4.1.17.2.Account Add Funds/Refund Report The Transaction Account Add Funds/Refund Report provides a record of the funds added or refunded on TajetaGlobal cards. The report is divided into sections. Each section includes a listing of the Add Funds or Refund transactions performed for cardholders within a specific Prefix. In addition, a cumulative total of all Prefixes will be provided at the end of the report. 4.1.17.3.Transaction Account Adjustment Report The Transaction Account Adjustment Report provides a record of all debit and credit adjustments performed on TarjetaGlobal cards. The report is divided into sections. Each section includes a listing of the Adjustment transactions performed for cardholders within a specific Prefix. In addition, a cumulative total of all Prefixes will be provided at the end of the report. 4.1.17.4. Daily Settlement Summary Report The Settlement Summary Report summarizes the TarjetaGlobal cards daily settlement and identifies that the settlement will be posted to the Master Account. The report also indicates any non-settled network activity, as a “memo” item, meaning that this "memo" amount may be settled at the latter time in a separate transaction. The report is divided into sections. Each section includes a settlement amount for cardholders within a specific Prefix. In addition, a cumulative total of all Prefixes will be provided at the end of the report. 4.1.17.5.Daily Settlement Detail Report The Settlement Detail Report provides detail information for all entries in the Daily Settlement Summary Report. The report also indicates any non-settled network activity, as a “memo” item, meaning that this "memo" amount may be settled at the latter time in a separate transaction. The report is divided into sections. Each section includes a settlement amount for cardholders within a specific Prefix. In addition, a cumulative total of all Prefixes will be provided at the end of the report. 4.1.17.6.Settlement Adjustment History Report Enterprise Operations Manual v1.0 Revised 5-11-02  40 of 90 omoreno@hotmail.com 408.656.2498

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