How to Implement
Guidance
Provide clear technical guidance.
The Scheme ensures that the technical guidelines to DFSPs on how to properly format messages are clear and well understood. Similarly, guidance on information sharing flows is included and also complies with relevant regulations.
Support cross-border data requirements.
Support additional information requirements for all countries reached in the cross-border arrangement. The Scheme should determine the need for any new data to complete the transfer (e.g., addressing, purpose of payment codes, etc.). Having necessary and correct information will minimize incomplete or failed payments – and the cost associated with them. The Scheme should also minimize the passage into or retention of personally identifiable information by the platform.
Establish fraud data sharing guidelines.
The Scheme establishes a mechanism and a rule to ensure that DFSPs share transaction data on confirmed fraudulent transactions. The transaction data should include on-us and off-us payments to support improvements in fraud typologies and transaction monitoring tools.
Why It Matters
This makes onboarding and interoperability easier and less expensive, making the Inclusive IPS more useful and adaptable to changing regulatory or Scheme requirements.
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Fraud Mitigation
The ability to mitigate fraud risk is dependent on ecosystem stakeholders having sufficient, timely, and accurate data to get a clear understanding of the types of frauds that are occurring, a shared language to describe them, and an awareness of the vectors and methods through which fraud is perpetrated. The ability to appropriately capture, analyze, and responsibly share this data is essential to successful fraud risk management.
Cross-Border
A cross-border payment often requires additional data elements to meet regulatory compliance or messaging protocols (e.g., ISO 20022 or other). National differences in addressing can be an especially challenging element in a cross-border Scheme and will require focus. Governance mechanisms ensure secure and efficient exchange among DFSPs, as well as information-sharing guidelines or mechanisms, to lower the instance of failed transfers.
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