ATM SWITCH By M V Sivakumaran. Introduction A Switch is a computer system It facilitates the transfer of electronic messages between terminal devices.

ATM SWITCH

By

M V Sivakumaran

Introduction

A Switch is a computer system

It facilitates the transfer of electronic messages between terminal devices and the appropriate network applications

Switch plays an important role in the entire ATM connectivity

Introduction….Banks and financial institutions keenly focus on cost reduction methodologies

Ex: In petrol pumps, the same POS (Point of Sale) device is shared by different banks Efforts are being made by banking industry to promote additional shared retail services, such as Automated Clearing Houses (ACH), stored value cards, and credit card authorization.

Switch ArchitectureThe switch is designed to run either on UNIX or Linux operating system.Object oriented design and completely modular. It’s developed in C & C++.It being a layered architecture provides flexibility to plug in or remove any layer depending on the need.It facilitates both distributed and centralized transaction switching modules.It is designed for high availability and fault tolerant architecture.

Switch Architecture….

The switch can be configured using a GUI based Configuration Management Systems.The system can interface with any RDBMS.It can be scaled up massively i.e. without modification in case there is an increase in number of channels and the total transaction volumes.Design supports multiple front-end client systems, which can be installed either on the Local Network or on the WAN.The Front-end systems are based on Client Server architecture.

Switch Architecture….

The architecture supports GUI interface to all front-end systems.Built-in operational security when accessed through the front-end systems. Only authorized users can have access to the system.Front-end systems are programmed using Visual Basic and Java.The modular architecture provides the facility to add new delivery channels as per the business need arises in the future.

Business Components

BASE24-eps Architecture

Scripted Control

Platform Specific

Foundation Components

Perusal

Account

Prefix

Authorization

Transaction

Journal

Extract Router

Host Systems

InterchangesTransaction Acquiring

EFT Systems

Web

Limits

Institution

Merchant

BASE24-eps Application Architecture

Business Components don’t change regardless of platform support

Data access, Messaging, Transaction Protection

Portable Application

MiddlewareFile systemOperating System

Immutable APIs

BASE24-eps Business Components

SIS – Platform Specific Services

HP NSK IBM z/OS IBM AIX Sun Solaris

Enscribe DB2 c-tree c-tree

XPNET MQ MQ MQ

C++ Foundation Components

Functions

Authorization Module

Pre- Authorisation Stand-in Authorisation Positive Authorisation Negative Authorisation

(Negative List based)

Functions….2. Reliability and Availability

The system is highly reliable and provides fail-safe service to the ATM customers along with zero downtime

Any modification or up-gradation, including maintenance is done without shutting down the system.

3. Scalability and Performance The switch is highly scalable with enhanced

performance. It adds flexibility to the bank in terms of providing

additional delivery channels.

Functions….4. Database The switch supports Distributed Database,

Clustered Database as well as Centralized Database.

It provides card management functionalities, for banks to issue all types of cards viz., ATM cards, Debit/Credit Cards and Smart cards etc.

It also provides comprehensive interface support for connectivity to other Networks.

Functions….

5. Application Monitoring & Control

Network Monitoring-It monitors all connections across the network, thus ensuring reliable transaction routing.

ATM Monitoring- It displays ATM status based on its group structure. Different color-codes indicate service status. ATM Monitoring is a tool to view each of the ATM devices with statistical information

Functions….

6. Currency Conversion The Switch supports the conversion of

transaction amounts from local currency to a settlement currency

A File Download Module helps in downloading the currency rate file of any particular financial institution

This file helps in calculating the currency conversions.

Functions….

7. Branch Database The system provides a very robust & foolproof

accounting and reconciliation mechanism, which ensures the following: All transactions are duly logged in. Inter branch reconciliation are done on day-to-day

basis with mechanisms to cross check the reconciliation process from the Electronic Financial Transaction Processing Switch.

Settlement between the settlement bank and other institutions is done on a day-to-day basis accurately.

Functions….

8. Automatic Reconciliation The switch is capable of supporting automatic

reconciliation on an ongoing basis throughout the day.

This will reduce the settlement processing time, at the time of cutover and will expedite the settlement process between branches, institutions, etc.

Functions….

9. Adjustment of Transactions The system is equipped with automated

procedure /mechanisms for handling unreconciled/disputed transactions

The mechanism includes, but not limited to entry methods like transaction creation, validation and final disposal.

Functions….

10.Report generation The list of reports generated on daily basis is as

follows.   Daily Branch wise report. Daily ATM wise report Settlement report. Daily institution/Interchange/Network Settlement

report. Daily Transaction Log report. Daily Exception report

Functions….11. Transaction routingThe switch acts as a hub for all transactions it receives

from its participating terminals/processors, institutions and thereby it needs a reliable and flexible routing schemes so as to handle the flow of data

The switch also supports card prefix routing and algorithmic routing but does not restrict itself to these two only.

When the issuer host is not available, the switch performs in Stand-in-Authorization mode.

Functions….

12.Store and Forward Subsystems In the absence of the destination host, the

Store and Forward (SAF)/Guaranteed Delivery Service prove to be very handy.

In such case, the switch performs stand-in processing to authorize transactions on behalf of the issuer agent.

Functions….

13.Multi Channel payment Interface The switch provides flexibility to integrate

multiple payment channels on a single platform interface.

The system supports ATM, POS devices, mail order, or telephone Order (MO/TO) and virtual payments from Internet/wireless networks from leading vendors.

Functions….14. Interchange Support Any Financial Transaction Switch will support

the following interfaces. 

a. ISO-based 8583 Interface.

b. AMEX International interface.

c. CIRRUS Interface.

d. PLUS ISO Interface.

e. VisaNet Interface.

ATM Switch Specifications

Hardware Components of a switch Sun Server/Stratus Server Configurations: OS- UNIX.

RAM- 256 100 MB hard

disk space to run the application

ATM Switch Specifications….Software Options for the switch

1. Operating Systems 2. Database 3. Communication Protocol 4. Middleware5. Programming Language6. Operational Security 7. Data Storage 8. Communication Mechanism

ATM Industry Standards WOSA /XFS (Windows Open Services Architecture

and added Extensions for Financial services).CENT/ISSS (European Committee

Standardization/Information Society Standardization System)

BSVC (Banking Solutions Vendor Council)Windows DNA FS (Distributed Internet

Applications for Financial Services Dec.1997)J / XFS (Java from Sun systems and XFS from MS)

1998

Infrastructural Options for ATM and ATM Switch Deployment

Option-I: Owning ATMs and ATM Switch.

Option-II: Outsourcing ATMs and ATM Switch.

Option-III: Sharing of Infrastructure (ATM Sharing)

Thank You !!!