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PAYMENT-SWITCH MIGRATIONS
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Contents
Introduction ................................................................................................................ 3
The Hunt for a New Switch .......................................................................................... 3
Migration Approach .................................................................................................... 4
Table 1. The Business Impact of the Switch Migration Decision ............................... 4
Factors Influencing Migration Strategy Selection .......................................................... 5
The Phased Migration Approach .................................................................................... 6
Table 2. Phased Approach Advantages/Disadvantages ............................................. 6
The Big-Bang Migration Approach .................................................................................. 7
Table 3. Big Bang Approach Advantages/Disadvantages ........................................... 7
Key Migration Project Milestones ............................................................................... 8
Best Practices: An Overview ...................................................................................... 10
About Opus Consulting.............................................................................................. 11
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Introduction
It’s hard to maintain a legacy switch given the growing market demand for better payment services.
The growing popularity of online shopping -- and online banking -- is driving the demand for better
payment services, and mobile-payment technologies are further raising consumer expectations for
additional payment systems features and functionality. The ability to provide a unique and seamless
customer experience is the key goal for next-generation systems. Regulatory compliance and
regional- provider mandates are additional factors to be addressed by new payment systems. A
fiercely competitive market for acquirers also requires bank issuers and payment processors to tailor
their systems to meet business needs in a timely and cost-effective manner.
Every new payment product builds on the availability, technology, scalability and reliability of a
switch, which means it constantly requires maintenance support. There is, consequently a growing
need for a multiplatform solution, which can acquire transactions across many different channels;
manage electronic payment devices, and also perform high-volume switching, routing and
authorization services.
In retail payments, the dividing lines between card payments, mobile payments, electronic funds
transfers, and new alternative payments methods are narrowing. Providing a seamless payments
experience depends on an open and flexible switch that can deliver an integrated experience across
all these channels. Real-time processing, speed of response, and round-the clock availability are also
vital in order to meet customer expectations.
To summarize, the drivers for switch migration include:
New payment channels
More Payment types
Technology Lifecycle
Customer expectations
Increased competitions
Globalization
Compliance requirements
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Migration Approach
Once the decision to either buy an Off the Shelf (OTS) product or build a custom solution is made, an
important question remains: how will the migration be accomplished? How does the organization
choose the correct migration services provider? What confidence do we have that the provider can
complete the migration to the new switch on time and within budget?
As described in Table 1, switch migrations are crucial decisions for organizations. Systems with higher
complexity need a totally different migration approach as compared to common complex systems.
Considering the increasing functions -- and the heavier transaction load -- which a switch has to
support today, the experience of the migration-services provider must be proportionately greater to
qualify for selection.
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The options for data- migration have changed in recent years. Migrating from an existing switch
requires careful consideration to ensure a seamless migration with minimum or no impact to ongoing
business operations. It is crucial to obtain a clear understanding of the existing business, operation
and application environment. This information is required to develop a successful migration strategy.
With proper planning, an existing switch application can be either migrated or upgraded to become
the new switch system.
Perhaps the most important decision -- one that can directly impact the success or failure of the
switch-migration project -- is whether the transition from the current platform to the new platform
should be (1) an instant switch-over, that is a 'Big Bang' (all at once) Approach, or (2) a phased
approach. The factors to be considered in making this decision follow.
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The Phased Migration Approach
A Phased data migration has a number of names -- iterative data migration, trickle-feed data
migration, synchronized data migration and so on. In essence, they all mean the same thing - the data
will be migrated in smaller increments until there is nothing left to move. Depending on the nature of
the data, phasing the data migration is always less of a risk to a migration project, not only from a
data migration process view, but also from a business transformation view.
Advantages Disadvantages
Less risk Longer implementation time to fully convert
Employees learn as they go – there is no dip in Not as focused as the Big Bang approach
performance caused by the need to learn the new
system
More time for users to adapt to the new system A state of continuous change can sometimes
be disruptive
Small details or issues can be fixed as you go Can have missing information because each
module relies on info from others, so in a
transitional period there may be some gaps
Skills and experience are gained with each phase Temporary bridges need to be made from old
which can help smooth the process as you get to new
further along
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The Big-Bang Migration Approach
A "Big-Bang" data migration is where an entire dataset is moved from the source to the target switch
in one operation. This should typically be carried out over a weekend or planned down-time period.
Large Big Bang migration projects should be avoided if possible, but it is noted that some situations do
require the Big Bang approach. There is no absolute guarantee that, after a Big Bang migration,
everything will be working the next day when you come in and use the system. Roll-back procedures
must be in place to correct any "wrong events" that occur.
Some of the actions to be taken during a big bank migration:
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Key Migration Project Milestones
The migration project plan includes all the tasks which are to be carried out before the actual data
migration to the new switch system takes place. Factors such as product features, operations,
business processes, downtime, cardholder impacts and communication, impacts on ancillary systems,
and scheme-certification planning impacted during migration. Below are the major tasks and project
milestones to be accomplished during the migration project.
Data Analysis
Data analysis is one of the first and most important activities undertaken to gain an understanding of
the legacy switch source data. The relationships between data elements, primary keys, and the
target- system data- model requirements need to be determined.
Business Transformation and Impact on Data Requirements
Migrating to a new or upgraded switch may require the business to either adapt their operational
process or create additional processes to support the system. Each of these processes may require
data to be read from, or written to, data presentation and data formatting. These requirements are
important, as the legacy- source data may not be in the correct format and/or some of that data may
no longer be required for the migration. A lot of time can be wasted validating, cleansing and
transforming irrelevant legacy data. Understanding how the legacy data is going to be used ahead of
its migration could save time and effort.
Data Validation and Mapping Rules Configuration
The outcome of the data analysis activity is needed before the rules for data validation and mapping
can be defined. Source-data validation may be required as some of the target attributes in the target-
system data model may be mandatory. The resulting rules must be present to preserve the integrity
of the target system.
Data Cleansing
Data accuracy is important, since most data attributes are used by the switch to trigger an event or
operation. Cleansing of the legacy-switch data may be required before migration to ensure that the
mandatory target fields are populated. In addition, a data-quality initiative audit maybe required.
Quality and Success Criteria
The migration process must be monitored to determine if it is achieving its purpose. Once all the
project tasks have been defined, each task should be checked to ensure that the quality and success
criteria are defined.
Allocating Responsibility and Ownership
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The migration project plan should include a process to define the accountability and responsibility for
each task, and that this component of the plan is available for reference during migration. The owner
will be accountable for the task and ensure that it is accomplished and meets the specified quality
standard(s). Each task process -- and the related rollback procedures -- should be fully tested and
approved for the related function(s).
Data- and System-Freeze Times
The data-freeze time can be defined as the duration (scheduled date/timeframe) of the Production
phase; no changes to the source data can be made during this time. Depending on the nature of the
data, the actual freeze time is planned to be as brief as possible, since all system operations that
impact the data must cease.
Automated Testing
The risk profile of your migration project can be reduced through automated testing. A real-time,
automated, transaction-based test environment simulates network connections and end-to-end
transaction behavior to ensure all infield scenarios can be tested effectively. Once all the related
tasks have been identified and the task owners have been assigned, the end- to- end process is ready
to be tested. The testing of the complete process is important and should be carried out a number of
times until the process achieves the quality and success criteria/requirements consistently.
Support Your Customers
Successful migrations require the continued support of external parties throughout the process. The
project plan should include the requirements of terminal integrators and merchants or other
payment- channel providers. If you are providing switching services for other banks connected to
your switch, then your migration plan will need to consider how to support their migration.
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Best Practices: An Overview
Employing best practices for payment switch migrations increases the likelihood that your project will
be successful. The first and foremost requirement is to develop a comprehensive project plan for the
migration, specifying the goal and defining the objectives in the project definition document. Your
organization’s business strategy might also play a vital role in switch migration.
If you want to take significant cost, risk and time out of the migration equation, it is essential to:
identify the right migration approach,
identify the factors influencing switch migration, and
identify the appropriate tools.
Emphasizing the testing and data validation tasks as key components of your migration strategy will
significantly reduce project risk, as well as lower overall costs. The right quality checks and success
criteria will help you to design and deliver a migration in a way that meets the needs of your business.
It provides the assurance you need to guarantee performance at every step, from evaluation to
certification and live production. Adopting this best practices approach will keep your organization on
the path to a successful switch migration, as well as deliver significant competitive advantage on an
on-going basis.
Switch migration is an intensive and complex project, involving a broad range of internal and external
stakeholders. Even the best-prepared payments business can find unforeseen difficulties in
migration. We trust this Guide will help your project team avoid the more costly pitfalls.
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About Opus Consulting
Opus Consulting has experience with complex and highly complex payment switch migrations with all
leading third-party products. Opus has the prerequisite payments- domain expertise for consulting,
customization, implementation and support services that suit the dynamic needs of the customers.
We have been an implementation partner for banks where both switch migration approaches -- Big
Bang (instant switch over) as well a phased migration -- have been employed as per business need.
We help customers decide migration strategy by analyzing the likely impact of various approaches to
the migration process.
Opus has a track record of success with payment-switch migration, domain consulting,
implementation and support. This experience includes migrations to and from BASE24 products,
electraSWITCHTM, Postilion, etc. switches. Opus is committed to utilizing industry best practices for
switch migration projects and achieving 100% successful switch migration based on predefined
performance requirements.
Our proprietary toolsets expedite switch migration tasks and reduce the overall duration of the
project. Opus also has compiled more than 3000 test cases to verify and validate the new switch
environment, further reducing project risk, as well as time- to- market.
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