The purpose of the system is to organize the distribution and service of consumer credit that is granted to customers in retail outlets. After examining the creditworthiness of a customer, a credit card is issued with not only individually assigned credit limit but also available payoff options. During any transaction a cardholder can determine the payoff method, for instance, the number and type of rates (decreasing or equal). This allows a borrower to conveniently choose the method of repayment within a pre-defined creditworthiness test.

In the case of common credit cards a single loan is incurred (withdrawn, as it were, in installments while making purchases) with one credit limit and one debt balance. Payment deadlines, minimum repayment installments or interest rates are set globally for the loan. In this case, one card is used to take a number of loans since each transaction at a point of sale is a separate loan. While there is obviously one global credit limit (for sake of risk management), still each transaction may be treated individually and settled separately. Therefore, payment timelines, grace periods, etc. can start on the date of the transaction, and not, as usually, from a statically specified day of a month. Also the terms of the loan, including the interest rate, can be fixed separately for each purchase.

The system is based on identification cards with a magnetic stripe or electronic cards, acting as credit cards. Payments are made in points of sale equipped with terminals with an appropriate software. The software supports operations on a consumer credit, such as accepting purchases, determining terms of repayment for each transaction, recording payment installments, activating or blocking cards.

In order to operate in the system, terminals (via a permanent link to which are connected at the point of sale, or wirelessly via GSM cellular network) connect to the central authorization and clearing system in the data center and exchange relevant information. In this method settlement with a cardholder as well merchants is performed.

For remote management of terminal network we created our very own Terminal Management System (TMS). It makes sure appropriate files are automatically sent to terminals whenever an update of software or a new configuration is required. This enables a dynamical, remote adjustment of functionality.

We have implemented such solutions into payment terminal networks which communicate with two data centers, a primary and a backup centre, between which there is a mechanisms for switching procedures of data processing and replication. Terminal software fits into the scheme of high availability of services thanks to communication mechanisms implemented independently between several data centers. What is more, after a system failure, operations are moved to a backup data center, and the system, using the memory of the terminals, is able to complete potentially lost data in the backup data center. This is a completely innovative solution, stepping beyond a regular connection with a backup location. In a sense, in addition to regular data backups, terminals act as a spread network of transaction backup, which can be used in case of emergency.

We have experience implementing a system for selling credits for prepaid services by means of point-of-sale terminals. These include: mobile phone top-ups (e-voucher), prepaid Internet telephony systems (VoIP), prepaid electricity distribution models, prepaid satellite TV services etc. In order to complete the transaction a desired top-up is chosen from a terminal menu followed by charging the purchaser and printing a special coupon with a refill number.

Obviously, the system capabilities do not stop here. It also supports all the business processes related to the distribution of top-up codes: reception of a batch of codes from a manufacturer (e.g. a mobile phone operator), inventory management, distribution of codes to payment terminals. It also helps managing transactions with vendors: controlling sales quota of individual agents, settling fees, collecting revenues, vindication of debt or, in extreme cases, blocking the sale of top-ups.

In order to operate the system, terminals (either via a dedicated line at the point of retail, or a wireless GSM network), connect with a highly efficient, central distribution and settlement system in the data center and exchange relevant information. Thus authorization of refill sale as well as the settlement with vendors takes place.

For remote management of terminal network we created our very own Terminal Management System (TMS). It makes sure appropriate files are automatically sent to terminals whenever an update of software or a new configuration is required. This enables a dynamical, remote adjustment of functionality in accordance with the client’s wishes.

We have implemented such solutions into payment terminal networks which communicate with two data centers, a primary and a backup centre, between which there is a mechanisms for switching procedures of data processing and replication. Terminal software fits into the scheme of high availability of services thanks to communication mechanisms implemented independently between several data centers.  What is more, after a system failure, operations are moved to a backup data center, and the system, using the memory of the terminals, is able to complete potentially lost data in the backup data center. This is a completely innovative solution, stepping beyond a regular connection with a backup location. In a sense, in addition to regular data backups, terminals act as a spread network of transaction backup, which can be used in case of emergency.

We have completed projects for implementing fuel card service systems based on payment terminals, supporting both private fleet cards as well cards of international systems, such as UTA, DKV and BZA.

Our software fully supports payment approval – reading the card, entering PIN, PIN verification, online payment authorization in fleet card systems (for example, UTA, DKV), printing a receipt and sending transaction confirmation to the fleet card clearing system. To a limited extent the system also enables payments in safe mode (off-line, for example, while disconnected from the authorisation server), in accordance with the relevant procedures defined by the issuing organization.

The system works in two hardware configurations of the payment terminal.

The first option requires a payment terminal to be connected to a sales system at a filling station. A transaction is recorded in the system, and a payment order is sent to the terminal. After the completion of fleet card payment acceptance the terminal informs the system about the acceptance or rejection of the transaction.

Alternatively, the system runs on self-service (“unattended”) payment terminals integrated with systems of fuel dispensers on self-service stations. Drivers do not only pump fuel themselves but also perform payment with fuel cards in self-service payment terminals.

In order to operate in the system, terminals (via a dedicated line to which are connected at the station) connect to a highly efficient, centralized “transaction switch” system to process and exchange data, which in turn enables authorisation and settlement.

For remote management of terminal network we created our very own Terminal Management System (TMS). It makes sure appropriate files are automatically sent to terminals whenever an update of software or a new configuration is required. This enables a dynamical, remote adjustment of functionality.

This system was originally implemented for our client in the United Kingdom. The software runs on terminals installed at points of sale and is used to confirm purchase of goods and subsequent VAT refund, which is possible when the goods are transported outside the European Union by non-EU nationals (tax-free shopping).

During the purchase a terminal prints an appropriate form with specified categories of purchased goods, the applicable VAT rates and amounts. Next, the form is confirmed by the vendor and handed to the customer as a basis to apply for tax refund.

Recorded transactions are transferred by the terminal via GSM network to the central system where they are used as a basis for VAT refund when the customer crosses the border.

For remote management of terminal network we created our very own Terminal Management System (TMS). It makes sure appropriate files are automatically sent to terminals whenever an update of software or a new configuration is required. This enables a dynamical, remote adjustment of functionality.

We have completed a number of terminal applications for accepting cards issued by multinational financial services such as VISA and MasterCard.

It goes without saying that it is difficult to dwell on this “classic and obvious” application for payment terminals which, after all, take their name from this functionality.

After all, such an application must now meet exacting standards of:

• card technology (magnetic stripe, contact cards compatible with EMV, proximity cards like MasterCard PayPass or VISA payWave),
• security of transactions, including ensuring an adequate level of data confidentiality, PIN protection, data transfer security,
• functionality of supported types of transactions, rich user interface, administrative and diagnostic functions.

In addition, such an application must support a wide range of client-specific functionalities – that of acquirers or a unified network of merchants.

Although it is difficult to describe in detail all the aspects that make each application implementation a few month’s project, it is worth to mention one very unique and innovative implementation we have performed. Namely, a multiacquiring payment application which allows a merchant to work simultaneously with several acquirers.

In this solution, a decision based on a variety of parameters is made by a terminal (the amount of the transaction, the brand and the type of card used, the bank that issued the card, communication technology, time of day, the history of transactions made so far on the terminal) through which settlement agent the transaction is to be settled. The terminal sends the transaction in a manner consistent with the requirements of the settlement agent (e.g. in accordance with the communication protocol).

It optimizes transaction costs of the merchant against different commission rates of different acquirers for different categories of transactions. Clearly, the merchant is presented with a number of configuration and analysis tools, allowing for the optimal choice of parameters by which the decision to which acquirer a transaction is sent.