Overview

Delivering on the promises of SEPA and in line with
the European Commission's objectives, payfair is
looking to offer a truly International Payment Scheme
for cards that caters for low cost solution, pricing
transparency and independent governance.

One of the key principles of the payfair scheme
is that all players get a fair compensation for the
services rendered to the other players in the
transaction processing value chain. Hence no
hidden fees, commissions, provisions... bundled or
not with processing fees in 'Interchange Fees' and
'Merchant Service Charges' but a transparent list
of service fees that relate to real transaction
processing activities. payfair is also providing a
real service differentiation to merchants by
enabling them to choose which level of payment
service they really need.

As a result the payfair business model is
promoting the following features:

Flat fees for intra-parties POS fees, % fees being
only used for low value payments in order to
promote cash displacement
Low cost product structure
Common business model and fee levels across
SEPA
Guaranteed payments
Possibility of non-guaranteed payments with direct
debit collection by the merchant (if so desired by
the merchant, based on the IBAN and switch code
present in the EMW Chip)

payfair transaction processing does rely on proven
but cost effective hardware and software solutions
that are optimized for the target players in the
scheme. payfair scheme operation will be based
on the best of breed of existing card schemes
standards (EMV, ISO 8583, ISO 20022).

The payfair scheme and processing services are
leveraging industrial standards in order to avoid
unnecessary costs to its customers and to provide
best security:

The payfair scheme is SCF (SEPA Card
Framework) compliant
EMV terminals (for chip implementations)
PIN is validated off-line by the terminal but all
transactions go technically on-line for authorization
Cards are supporting multiple EMV applications,
starting with:
payfair debit, deferred debit or credit
Card authentication application
(for remote cardholder authentication)
Contactless payments based on NFC, using card
or mobile implementations

Merchant loyalty identification is supported
Authorization and Clearing is based on national
standards as well as on ISO 8583 following the
Berlin Group's specification and ISO 20022.
PCI-DSS compliant

The issuing of the payfair scheme is open to all
parties in the market, being merchants or banks.