POS – Processing of Server Loaded Off-Ledger Funds

Purpose – to facilitate the monetisation of off-ledger (‘Cloud’ based) funds using a debit card and
point of sale technology.

Requirements of the Sending and Receiving Parties

The Sender must have the capability to ‘load’ off-ledger (’Cloud’) funds to a cardholder’s debit card.
These funds will be associated exclusively with a specific card and the sending side must be able to
authenticate release of the funds when required to do so in order to complete the POS transaction.

The Receiver must be able to instigate and process a POS transaction in the manner stipulated and
agreed with the Sender. The Receiver must have a suitable bank or financial institution to facilitate
the receipt and onward distribution of received funds.

Project Workflow

1. The Receiver will confirm that he is capable of entering into an agreement to process POS
transactions and distribute the realised funds.
2. Meeting in person to finalise the details, including location and size of the initial transaction,
creation of a detailed transaction plan, the agreement of a tranche schedule and the sharing
of information including how parties will be compensated and timings.
3. Depending on whether the solution involves using a direct bank interface or a physical POS
device – a further technical meeting may be required to ensure the Receiver has the required
capability for the elected method.
4. Agreement drawn up between the Sender and the Receiver confirming the test tranche, the
ongoing tranche schedule, and the distribution details.
5. The initial test transaction will be entered by the Receiver and the transaction will then be
authorised and released by the Sender.
6. The Receiver will then distribute the received funds by the agreed method to the designated
parties within the agreed time frame.
7. Following receipt of the agreed distributions, further funds will be loaded to the card and the
Parties will then proceed to the next and subsequent transactions.

Documentation

Supporting documentation will need to be produced for all transactions

Chargebacks

The risk of a chargeback being instigated by the Sender side is zero, for reasons already discussed.

Technical Assistance to the Receiver

The Sender will offer as much direct advice and technical assistance as required to make sure that
the Receiver has the technical configuration to process a POS 101.1 protocol with loaded cloud
funds. This is best achieved with a meeting of the technical representatives from both sides.
Outline Technical Procedure

The loaded card will work with a POS device using 101.1 protocol
This is a card with a 4-digit PIN
The type of transaction is ‘Online’

If a POS device is used it will need to be able to process ‘Cloud’ funds which have been loaded and
associated with the card. A normal POS transaction will contact the card issuer for authentication –
THIS IS NOT THE CASE HERE. With this transaction the card credentials are merely a primary Key to
accessing the VISA database where the card balance will be made available for download to
complete the transaction.

If the Receiver is using a POS device there is a simple engineer’s test that will prove the device has
been enabled by the issuing merchant to work with these type of transactions.

If the Receiver is using a banking interface and the services of a senior banker then they should have
the facility to process this kind of transaction.

Bank Server Procedure

1. Confirm that the Receiver has access to a Bank Officer who can process and accept card
payments directly on his banking server.
2. Agree the size of test tranche and subsequent transactions sizes
3. The Receiver will access his banks bespoke card transaction software and manually enter on
screen the card details and the transaction amount.
4. The Sender will provide an authentication code to the Receiver and the code will be entered
into the bank’s system.
5. The Sender will then log on a second time and release the funds to finalise the transaction.
6. The funds will arrive directly into the account designated by the Bank Officer working for the
Receiver.

Previous steps outlined above in the Project Workflow and Documentation sections still apply.