The Association was established by Ukrainian banks members of Europay International Payment System on March 19, 1999 for market development coordination of payment cards Maestro and MasterCard November 11, 2004 the Association was renamed to Ukrainian Interbank Payment Systems Member Association “EMA”.
EMA cooperates predominantly with international payment systems or with other systems based on payment cards use and working in accordance with international standards.
Ukrainian inland payment systems which members have established organizations representing their interests are not in the EMA premium focus.
In the EMA focus there are no in-bank single-issuing payment systems, as well as payment systems not using payment cards as a payment activation tool.
The Association solves three main problems:
1. Collective security system functioning and improving, and co-operative activities on prevention of payment cards fraud.
2. Cooperation and interests representation of EMA members in state bodies (National Bank of Ukraine, Cabinet Council of Ukraine, Parliament of Ukraine) concerning card programs development, card business legal and technological issues, as well as cashless payments;
3. Educational campaigns realization for card holders and commercial enterprises; trainings and re-trainings for employees of banks and state bodies responsible for the whole spectrum of cashless payments using payment cards.
Ukrainian forum on card payments and operations security (FCPS and Co) was established on April 10, 2001 as EMA Association department.
The FCPS and Co main task is development and coordination of the complex of managerial, analytical, informational, and other measures on implementation of unified security standards in the field payment cards circulation in Ukraine by banks that are payment systems members:
- collection, investigation, generalization and analysis of relations in the field of payment cards circulation, development of recommendations on clients’ actions, as well as on actions of commercial enterprises and banks in irregular or questionable matters;
- data updating and maintenance of interbank Exchange-Online server (information about legal faults using payment cards, their producing and servicing equipment);
- providing information by mass media to citizens about standard measures on financial information protection;
- cooperation with law enforcement bodies;
Presently in Association activity take part 50 organization, among them are: 45 – MasterCard, Visa Int., UkrCard, American Express, NSMEP (National System os Mass E-Payments) payment systems members; representative office of IPS VISA International in Ukraine; Ukrainian Processing Center; “ZNAK” company; Euronet Worldwide; Technoconsulting Group (“Plastic Card” enterprise, Engenieering-Producing Company “Rontech”).
This year Association celebrates the 10 anniversary of work at the market of Ukraine. In opinion of card business leaders, from the moment of establishment in 1999 EMA Association became profiled organization, consistently and professionally lobbying interests of card market operators. Owing to Association and its members’ efforts are achieved significant results which would be impossible without the co-ordinated collaboration of banks:
1. 1. 2002 – development of the interbank information exchange system “Exchange-OnLine” in collaboration with Ukrainian Processing Center.
The system allows banks to exchange data regarding facts of illegal payment cards use, data or other necessary information discrediting. Efficient information exchange using the interbank information exchange system “Exchange-OnLine” allows banks-system users to take steps on prevention of discredited cards use (by card locking or re-issuing, by setting operation limits etc.) as well as to prevent potential losses as a consequence of illegal payment cards use.
Owing to the running data exchange over unified interbank information system “Exchange On-Line” during 2005 – 2008 there were arrested 24 fraudulent groups performing criminal activity with fabricated payment cards.
In 2006 was significantly updated the current version of informational system: there were added possibilities for analysis of fraud operations on the interbank level, as well as for tracking of fraudsters’ movement, collection of photo- and video-materials about supposed criminals. There were added to the system reference data about cash points of Ukrainian banks (with indication of cash points’ details and their location), BIN numbers reference table of all payment systems, manual of monitoring services, bank customer support. There were also added a possibility of publication of messages for an employee of the special structural anti-card fraud subdivision that allowed to ensure movement control and reacting on banks applications, including banks in regions.
For the purpose of on-line information of “Exchange On-Line” users about facts of fraud, as well as for early identification of cards which behavior can be considered as a high-risked. There will also be realized a possibility to download on-line statistical and graphical reports by cash points, cities and countries, about fixed facts of fraud. The reports are created by monitoring programs of the Processing centres.
In the nearest future it is planned to implement automatic download to the system of monitoring data of all Ukrainian interbank Processing centers.
2. In 2005 the Association developed the annual awarding program for experts of risk-management departments of banks and law enforcement bodies. The task of this program is involvement of quantity of experts to development and implementation of fraud prevention solutions and projects.
Within the framework of the Conference „Payment card – 2007” taken place in July, 2007 in Kiev, was held rewarding of experts of banks and law enforcement bodies anti-fraud departments in view of the results 2006 in directions „The best manager on card anti-fraud”, „Arrest 2006” etc.
3. Banks – members of Association take part in quarterly sessions of the Forum on card payments and operations security (FCPS and Co) which is structural Association department. Within the sessions framework of FCPS and Co are discussed issues of cooperation with banks and law enforcement bodies; cases of arrest of fraudsters by results of issue/acquiring monitoring; security standards of international payment systems etc.
Within the sessions of FCPS and Co has been held 4 practical seminars devoted to matters of Banks/Processing centers certification on PCI DSS standards conformity, concerning security of data storage and transfer. During the seminars the experts of companies SYSNET, Rahaxi, OpenWay, One-Sec had raised questions on standards, banks grading levels, stages, and practical aspects of certification process for banks and processing centers on standards conformity.
4. The Association prepared, and Parliament of Ukraine, National Bank of Ukraine, Ministry of Ukraine passed following laws and regulatory legal acts:
The Law (2346-14) d.d. 05.04.2001 № 2346-III «About Payment Systems and Money Transmissions in Ukraine»;
The Law № 2056 d.d. 06.10.2004 “About alteration of the Law of Ukraine « About Payment Systems and Money Transmissions in Ukraine»;
The Law of Ukraine “About Organization of Formation and Circulation of Credit Histories”, d.d. June 23, 2005;
The Order of Cabinet Council of Ukraine d.d. 29.03.2006 № 377« Some Issues of Realization of Settlements for Sold Goods (Provided Services) with Use of Special Means of Payment»;
The Order d.d. 26.05.2006 № 753 «About Approval of the Distribution Concept of Cashless Settlements for Sold Goods (Provided Services) with Use of Special Means of Payment»;
Provision №2 of National Bank of Ukraine about approval of amendment of Provision №137 «About Procedure of Payment Cards Issue and Realization of Operations with their Use », registered by the Ministry of Justice on January 22, 2008;
Provision of National Bank of Ukraine «About Procedure of Registration of Contracts on Membership or About Participation in the International Payment Systems»;
Article #200 of the Criminal Code of Ukraine «Illegal Actions with Documents on Transfer, with Payment Cards and Other Access Devices to Bank Accounts, and with Equipment for their Producing»
5. 1. There were prepared new amendments to the Law of Ukraine «About Payment Systems and Money Transmissions in Ukraine» and to other laws of Ukraine. The Projected Law «About Alterations to Some Laws of Ukraine (concerning cashless settlements and use of special means of payment) № 1463 d.d. 31.01.2008 is registered in the Parliament of Ukraine of 6th convocation.
On April 02, 2008 the committee of the Parliament of Ukraine regarding the finance and bank activity supported the Projected Law № 1463 and recommended to the Parliament of Ukraine to pass it in the first reading.
6. After coordination with the National Bank of Ukraine of alteration of Provision № 137 «About Procedure of Payment Cards Issue and Realization of Operations with their Use» there were registered Provision №2 of the National Bank of Ukraine about the approval of alterations of Provision №137 «About Procedure of Payment Cards Issue and Realization of Operations with their Use» on January 22, 2008.
7. Active actions of Association (including work with Antimonopoly Committee of Ukraine, Embassy of the USA, World bank, IFC) prevented in 2006 – 2008 monopolization by payment system NSMEP of a segment of payroll-social-transport-student’s projects, and transfer of servicing of all social payments / accounts of individuals to the state banks. Now the support of these issues is proceed by Association in Antimonopoly Committee of Ukraine.
In July 2008 ЕМА Association approached the Antimonopoly Committee of Ukraine with a claim about antimonopoly law violation by amendment of Terms of open competition by definition of Ukrainian banks authorized to transfer payroll payments to employees of state-financed organizations and of the state social care bodies.
On January 27, 2009 the Antimonopoly Committee of Ukraine passed the judgment on the case and obliged the Ministry of Finance of Ukraine to exclude following words: «The list of three systems of mass electronic payments minimum, obligatory of which is National System of Mass Electronic Payments (NSMEP) which member is an applicant» from the current version of Terms of competition. This Committee decision confirmed the right of millions of Ukrainian citizens for a free choice of a bank emitter and of a payment card. Also, the Committee pointed interested state authorities on inadmissibility of legislation violence by refusing banks to exercise their right to use payment cards of other payment systems (other than NSMEP) for participation in programs initiated by government, the ministries, or the National Bank of Ukraine.
Now the support of these issues is been proceed by Association in Antimonopoly Committee of Ukraine.
8. On the instructions of banks-members the Association represented interests in court on settlement concerning the Claim from «Global Grani Trade» Ltd which the Ukrainian banks-members of payment systems had received in November, 2006. On April 21, 2008 Solomensky district court in Kiev gave judgment for the case № 2-5008-1/07 satisfied stated claims of the demandant to the respondent in a full extent. This decision confirmed and protected the right of the Ukrainian banks-emitters for free and unlimited issue of payment cards, as well as stopped «legal raid» and abusing norms of the current legislation. On September 17, 2008 the Appeal court of Kiev has left a judgment of the first instance with no alterations, again having confirmed the right of banks for free use of payment cards.
9. For the period 1999 – 2008 for members of Association and/or with their participation it was held more than 110 public actions (marketing campaigns, meetings, presentations, conferences, round tables, press conferences) directed on promoting the advantages of cashless settlements. It was developed and used by banks an electronic class for cashiers and traders. Members of Association take part in seminars, forums, and working groups, receive materials of researches performed by ЕМА and its members, participate in annual Conference «Payment card» on favourable terms. Conference «Payment card – 2008», has attracted more than 600 participants. On November 27-28, 2008 the Association held the First inter-regional scientific-practical Conference “Card Security in the CIS and the Eastern Europe”