Business Operations & Operating Results
Credit Card Authorization Switching Center Operation
In response to request from the Ministry of Finance for integrating and establishing a credit card domestic authorization network, NCCC and Financial Information Service Co. jointly completed system link and set up a “hub of credit card authorization system link” in 2002. All the domestic credit card issuing and acquiring institutions may choose to link with either NCCC or FISC to switch and complete the transactions through the hub of authorization system link. By doing so, we have achieved the government’s policy goal of “Taiwan-issued international credit cards complete transaction authorization processing inside of the country when used in Taiwan”. Meanwhile, for the transactions made outside of Taiwan by NCCC member-issued credit cards and the transactions made inside of Taiwan by foreign-issued credit cards acquired by NCCC members, NCCC acts on behalf of members to switch the authorization messages through connecting with the interface of the international credit card associations.
(1) To handle inter-bank credit card authorization switching transactions through the hub of authorization system link for Taiwan-issued credit cards (including magneticstripe card and chip card) that are used at domestic merchants (including brickand- mortar, electronic commerce, mail order and TV order) and which transactions are processed via reading magnetic stripe, chip, or by RFID reader, or by manual operation.
(2) To process authorization switching for transactions made at merchants in foreign country by Taiwan-issued credit cards and transactions made at merchants in Taiwan by foreign-issued credit cards. 《Operating Results in 2015》
Number of Transactions: NCCC handled 760,016 thousand authorization switching transactions in 2015, an annual growth rate of 5.98%, compared to 717,101 thousand in 2014.
Domestic Credit Card Interchange & Settlement Operation
NCCC, by obtaining the regulatory authorities’ approval, engages in processing domestic credit card interchange & settlement operations, that is to handle the non-onus transactions acquired by all acquiring institutions, to consolidate and generate the settlement sum, to process settlement funds collecting and sending through “Central Bank of the Republic of China (Taiwan) Interbank Funds Transfer System”. The business aims are as follows:
(1) To develop domestic credit card interchange & settlement operating regulations in accordance with the government policy.
(2) To handle domestic credit card inter-bank settlement so as to enhance transaction data security.
(3) To carry out the policy of “domestic transaction to be settled inside of the country” so as to increase operating efficiency.
Domestic Interchange & Settlement processing includes credit card and debit card of U Card, VISA, MasterCard and JCB issued in Taiwan. The number of participating institutions totaled 39. 《Operating Results in 2015》
(1) Transaction Volume: The domestic settlement summed to NT$931,800 million in 2015, up 3.33% compared to NT$901,800 million in 2014, which is shown below:
(2) Transaction Numbers: The number of domestic settlement transactions totaled 401,006 thousand in 2015, up 6.41% compared to 376,836 thousand in 2014, which is shown below:
Domestic and International Transaction Settlement for NCCC Member-issued Credit Cards
NCCC is established as a member organization. To help members reduce operating costs, NCCC consolidates domestic and international transactions made by NCCC member-issued credit cards and handles settlement operation for the members. The operation effectiveness can be summarized as follows:
(1) To coordinate setting up a settlement system linking with the international credit card associations and processing transaction settlement for members.
(2) To provide centralized transaction processing service so as to reduce members’ operating cost and improve operating efficiency.
(3) To periodically provide business statistic data for members’ reference in policy making.
The NCCC member-issued cards include credit card and debit card of U Card, VISA, MasterCard and JCB. The number of participating institutions totaled 27.
《Operating Results in 2015》
(1) Transaction Volume: The total transaction amount was NT$1,839,500 million in 2015, up 11.14% compared to NT$1,655,100 million in 2014, which is shown below:
(2) Transaction Numbers: The total number of transactions totaled 748,766 thousand in 2015, up 10.81% compared to 675,712 thousand in 2014, which is shown below: