Business Operations & Operating Results
Credit Card Authorization Switching Center Operation
In response to the request from the Ministry of Finance for integrating and establishing a domestic authorization network for credit cards, NCCC and Financial Information Service Co. (FISC) jointly completed the 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 competent authorities' policy goal "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 magnetic stripe card and chip card) that are used at domestic merchants (including brick-and-mortar, electronic commerce, mail order, and TV order); the transactions are processed via reading magnetic stripe, chip, or by an RFID reader, or by manual operation.
(2) To process authorization transactions made at merchants in foreign countries by Taiwan-issued credit cards and debit cards, as well as transactions made at merchants in Taiwan by foreign-issued credit cards and debit cards.
Domestic Credit Card Interchange & Settlement Operation
By obtaining the competent authorities' approval, NCCC engages in processing domestic credit card interchange and settlement operations. NCCC handles the non-on-us transactions acquired by all acquiring institutions, consolidates and generates the settlement sum, and processes settlement funds collecting and sending through the "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 and settlement operating regulations in accordance with the policies.
(2) To handle the inter-bank settlement of domestic credit card transactions to enhance transaction data security.
(3) To complete the settlement in Taiwan for domestic transactions to increase operating efficiency.
Domestic interchange and settlement processing, including credit card and debit card of VISA, MasterCard, and JCB. The number of participating institutions totaled 37.
(1) Transaction Volume: The domestic settlement transaction volume was NT$1,323,000 million in 2019, representing an increase of 11.40% as compared to NT$1,187,600 million in 2018, as shown in the figure below:
(2) Number of Transactions: The number of domestic settlement transactions was 669,121 thousand in 2019, representing an increase of 20.28% as compared to 556,308 thousand in 2018, as shown in the figure 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 holders of NCCC member-issued credit cards and handles settlement operations for the members. Operation effectiveness can be summarized as follows:
(1) To coordinate the establishment of a settlement system linking with the international credit card associations and processing transaction settlement for members.
(2) To reduce members' operating cost and improve operating efficiency through centralized processing of transaction data.
(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 VISA, MasterCard, and JCB. The number of participating institutions totaled 25.
(1) Transaction Volume: The domestic settlement transaction volume was NT$2,868,100 million in 2019, representing an increase of 11.90% as compared to NT$2,563,200 million in 2018, as shown in the figure below:
(2) Number of Transactions: The number of transactions was 1,374,641 thousand in 2019, representing an increase of 23.41% as compared to 1,113,873 thousand in 2018, as shown in the figure below: