White Paper Connecting Issuers And Acquirers In The Sepa Zone Rev1
The Trionis Switch:
Removing the Borders in a SEPA Landscape by Interconnecting Issuers and Acquirers
The European payments market continues to go through a period of change. Increasingly card
acquirers are looking to process transactions cross-border; issuing banks have card customers
in more than one country, and retailers are looking for multi-country card acceptance
solutions that are cost-effective for all their outlets, irrespective of country location.
All Issuers and Acquirers rely on their domestic networks or on the Visa and MasterCard
networks for card transaction processing. SEPA has started to enable issuers and acquirers to
opt for alternative channels to switch transactions between domestically and cross border
within Europe as they seek simplified transaction processing.
Trionis is one of the vehicles to make this happen.
The Trionis proposition is that authorisation and clearing/settlement information can be
exchanged in a much more cost effective way compared to traditional methods utilised by
domestic schemes or the international card networks, through having a single connection for
the routing of all transactions irrespective of the brand on the card issued or accepted.
For an Issuer and an Acquirer, the business model is to increase overall profitability through
costs reduction. Maintaining multiple connections is expensive for parties in terms of
compliance and maintenance costs.Through a single connection to Trionis and Acquirer or
Issuer can reach multiple schemes; Visa, MasterCard, China Union Pay, American Express,
Diners/Discover for ATM and POS transactions.
TRIONIS Background Summary
Twelve European retail banking institutions (ranging from BNP Paribas Fortis in Belgium,
Swiss Post Finance and Swedbank in Sweden to the associations of savings banks in France,
Germany and Spain (all of them also shareholders of Eufiserv) have formed an interbank
processing Joint Venture together with First Data to provide European banks with an
additional choice in the new and evolving SEPA environment. This Joint Venture is an
independent, commercial entity and is called Trionis, headquartered in Brussels
A key objective is to allow banks to retain influence and control over pricing and routing of
card transactions while keeping processing fees at competitive levels.
The charter for Trionis states that the organisation will be in Europe, that all processing and
data storage will be in Europe and that settlement will be via the European financial system
(to permit Eurosystem oversight).
Trionis is brand-neutral and does not seek to manage a payment scheme – as this is
considered to be the role of the banks. The Eufiserv ATM scheme was spun off prior to the
agreement into a separate company called “Eufiserv Payments” and will be run and owned by
a group of banks. (In order to differentiate the Joint Venture from Eufiserv Payments, the new
name of “Trionis” was given to the Joint Venture upon closing of the transaction).
Trionis operates on commercial principles and is run as an independent business. Unlike other
First Data processing businesses that are 100% owned by First Data, bank participation in the
ownership structure is seen as important. First Data is both a user and a shareholder of
Trionis. However, its stake is limited to 50%. It is anticipated that the shareholding structure
may evolve over time as the market develops and certain shareholders (independently of
whether or not they do business with Trionis) decide to sell their shares or admit other
shareholders. What will not change is the commercial business model of the company.
Trionis offers a multi-scheme, single and dual message system, with multiple input and output
formats (6, currently rising to 7 in 2011), for both ATM and POS transactions.
The system supports bilateral settlement (between 2 banks), closed-user-group settlement
(between a community of banks) and multilateral settlement (between all participating banks).
The system can support multiple sets of payment rules for interchange calculation and
exception item processing.
The system can support multi-currency operation giving Trionis the ability to cover the EEA
and Switzerland and not just the Eurozone.
Trionis can provide issuer and acquirer gateway connections to the VISA and MasterCard
networks (as well as to other networks such as China Union Pay, Diners Club/Discover,
EAPS and American Express).
The existing networks of Trionis and First Data in Europe will be linked to create a network
with significant European coverage by early 2010. It is intended that this network will grow
further as additional banks and processors join the network.
Trionis Network – January 2010 SIA-SSB
CNCE Fortis Bank Swedbank PayLife La Poste
Paris Brussels Stockholm Vienna Berne Verlag
France Belgium Sweden Austria Switzerland
F I Card
Other FDI SIBS
Other FDI Portugal
Other FDI Switch Group VÖB-ZVD
CECA Trionis Protocol
Centres Equens IT
Pulse Bridge AMEX VISA MasterCard CUP
First Data First Data Dual message Gateway Gateway Gateway Gateway
Gateway Single message
CashCard FD Diners Club AMEX Visa MasterCard
Australia Bratislava Discover Network Network Network
Under Development ATM POS and ATM
Trionis can be seen as a SEPA-enabler, and one that is compliant with the SCF requirement to
separate schemes from processing.
Features underlying the benefits
Acquiring Network Issuing Processor Cardholder
Processor Account Details
Independent of card schemes and processors
Competitive pricing of switch processing fees
Clearing options: Real-time (single) or Deferred (dual)
Settlement options: Bilateral or centralised, gross or net
A choice of technical interface options: User specified interface,
Trionis interface, other interface standards
Service features tailored to fit user needs: quality, security, change, risk, fraud
detection, routing, interchange fees, billing
Multiple applications including closed user groups
Copyright 2009, Trionis SCRL. All Rights Reserved. 20