In order for a client bank to settle acquiring and issuing transactions as well as reimbursements and charges to VISA on a daily basis, a manual process was created to ensure that source reports were retrieved and translated into settlement summary reports and journals to be loaded into the core banking system for settlement.
The daily settlement process was conducted manually over the course of a 4 - 8 hour time period by a single operations personnel member. A greater investiture of time was required on Mondays in order to clear out the additional weekend back-log. The primary challenge was to greatly reduce the time taken to complete the settlement process while maintaining a high level of accuracy during this multi-step process.
A mainframe source document needed to be retrieved. This TXT document included a range of reports from reimbursements and VISA Charges to summary and interchange reports. The information contained within the source report then needed to be translated into a specially prepared EXCEL Template containing the Settlement Summary Report. The relevant information from the source reports were then manually copied into the Settlement Summary Report including totals for Interchange, Reimbursements, Charges and the Net Settlement Amount.
The totals of the values captured in the Settlement Summary Report were then required to be verified as equalling the values captured from the original source report. An up-to-date foreign exchange rate of the local currency against the US Dollar was then required to be input into the template. Values for VISA Voucher, Chargeback & Re-presentment journals, sourced from the Settlement Summary Report were captured in an additional journal upload template. Finally the journal upload template containing values for VISA Voucher, Chargeback & Re-presentment journals were loaded into the Core Banking System.
In order to ensure that the settlement process could be completed and ready for verification in a timely manner, Digiata implemented a Linx & Stadium solution in order to automate the process.
This new automated process retrieves the mainframe source document as soon as it becomes available. The differing reports contained within the document are then imported and normalised inside a SQL Database. Specific line items are translated from the source information into the Settlement Summary Report.
Integration with the Core Banking System is able to retrieve the required exchange rate. Finally, the VISA Voucher, Chargeback & Re-presentment journals were automatically created and loaded onto the Core Banking System.
A web front-end that allowed for the maintenance of source to settlement report mappings & journal definitions was also provided along with ability to verify and authorise the workflow.
The 4 - 8 hour manual settlement process could be completed within less than 3 minutes of the source document becoming available. The automated solution has now been deployed to 4 countries where the client bank uses VISA Acquiring and Issuing.
This has had a lasting effect on efficiency, cost reduction and risk mitigation resulting in a huge operational benefit to the Bank.
To find out more about VISA Settlement Automation and other financial business solutions, drop us a call or fill in a contact form and we will get back to you.