Scenario 1: Abi travels from India to Waterloo carrying his only credit card and does the hotel payment. If the transaction is declined for no reason of his credit limit, what happens?
Scenario 2: An expired terminal (yeah terminals do have a life that ends) is still in the market and transactions happen on it (my banking brethren!). Assuming a fraudulent transaction happens using the customer card, then who is liable to pay? Would it be the customer, merchant, acquiring bank, payment scheme, or the issuer?
In both the above scenarios the respective “Certification Board” of the payment scheme like Discover, Amex, MasterCard, Visa, RuPay will arrive at the reason and determine who is liable, if there is a fraud.
While the payment scheme certification body manages the compliance of its own rules, it also depends on 2 more certification boards:
This blog discusses in general the complexities and responsibilities of a Certification Board, not in specific a particular one.
The payment eco-system has various parties that are interdependent – acquiring bank, issuing bank, payment scheme, standard bodies like EMVCo, card manufacturer, chip manufacturer, terminal manufacturer, security testing lab, physical & OS testing lab, card personalization bureau, card applet & terminal kernel vendors. Phew…you get the idea.
Now think of each of these players having several products (D-PAS, Quick Chip, M/Chip, RuPay, payWave, BHIM, UPI, PayPass etc) serving thousands of banks, millions of customers and merchants around the world. Now, it gets interesting…
Managing all these testing and certifications need a system and process which is called a “Certification Board”, very similar to how our Educational Universities maintain our certificates. Now that we know a central certification board is needed, let’s see some of its functions, significance and benefits.
In summary, Certification Board ensures interoperability, traceability, liability, compliances of the products among a complex group of stake holders with well-designed administrative and technical processes. This will help the payment product customers (in this case banks) life much easier to do business and maintain compliances.
After all, banks should focus on customers and transactions, while the compliances and certifications are to be made easier by well-oiled certification board machinery.
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