Whether shopping in-store, online or at an ATM, interruptions in payment processing are not just inconvenient, they can damage a brand’s reputation. This is where Stand-in Processing (STIP) becomes a lifesaver, ensuring continuity even when primary systems are unavailable.
What is Stand-in Processing (STIP)?
Stand-in Processing is designed to ensure uninterrupted transaction authorisation when an issuer’s systems are temporarily offline or unable to respond. During these situations, the issuer processor “stands in” on behalf of the issuer, using pre-defined rules to authorise or decline transactions.
For issuers, this feature is indispensable. It not only maintains transaction continuity but also reduces the risk of cardholder dissatisfaction during system downtime.
Traditionally, STIP is offered by the card schemes, with many issuer processors unable to offer this service.
How does Paymentology’s STIP work?
When an issuer’s primary systems are unreachable, Paymentology’s STIP steps in. Our system uses configurable rules, such as spending limits and risk parameters, to process authorisation requests safely and efficiently.
At a high-level STIP provides two distinct processing options to ensure uninterrupted transaction operations:
- Basic STIP - In this model, the STIP provider acts on behalf of the issuer and declines transactions if no response is received from the system within a predefined timeframe. It is implemented for system integrity and prevention of fines by card schemes.
- Enhanced STIP - This enhanced model allows the STIP provider to not only decline but also approve transactions based on predefined criteria set by you. In scenarios where your system does not respond within the stipulated timeframe, transactions meeting these criteria are approved, while others are declined in accordance with the Basic STIP approach.
Benefits of Paymentology’s Stand-in Processing
STIP plays a crucial role in maintaining a positive payment experience, especially during critical moments like peak shopping periods or emergencies. By minimising disruptions, STIP helps issuers retain customer trust and loyalty.
It is important to note that a unique feature of Paymentology’s STIP, is that issuers who hold a ledger, can also operate a “shadow balance” on the platform, which will then be used to approve transactions during downtime, significantly reducing the risk of transactions being approved on accounts without funds.
Another significant advantage of Paymentology’s STIP is its customisability. Issuers have complete control over the parameters used in the process, tailoring authorisation criteria to align with their specific operational needs and risk management strategies. This flexibility ensures that the STIP solution can be adapted to support unique issuer requirements effectively.
Fraud mitigation is also a core benefit of Paymentology’s STIP. By applying issuer-defined risk thresholds, the system reduces exposure to fraud during periods of downtime. Even when primary systems are offline, the STIP rules provide safeguards, ensuring transactions are processed securely and responsibly.
Finally, Paymentology’s global reach ensures that STIP operates effectively across regions, providing consistent service no matter where the cardholder or issuer is located. This capability supports international issuers in delivering a reliable payment experience to their customers, regardless of time zones or regional complexities.
A real-world scenario
Imagine a holiday shopping spree when high transaction volumes strain systems. If an issuer’s systems go offline due to maintenance or unexpected issues, STIP ensures that cardholders can continue their purchases without disruption.
Similarly, during travel, when cardholders rely on their cards for bookings, transport and shopping, STIP guarantees that downtime does not lead to declined transactions, a critical feature for maintaining trust.
Why STIP is essential for issuers
In this day and age, payment interruptions are not an option. STIP Reduces the potential for financial losses associated with system downtimes and maintains the reliability of the payment ecosystem, fostering trust among consumers and merchants alike. By partnering with Paymentology, issuers gain access to STIP capabilities that minimise downtime and keep transactions flowing, no matter the circumstances.
Stand-in Processing is more than a backup system; it’s a critical enabler of uninterrupted payments. For issuers, having STIP capability in place means the difference between positive customer experiences and lost opportunities.
About Paymentology
Paymentology is the leading next-generation issuer processor, empowering fintechs, digital banks and retail banks to effortlessly launch and manage innovative payment solutions on a global scale. The company drives greater customer choice and value through easy-to-use, integrated platforms and services that help clients to disrupt the status quo, accelerate time to market, and achieve growth.
With a superior multi-cloud platform offering a vast global footprint, and enhanced real-time data, Paymentology distinguishes itself as a leader in the payments industry. Its team of payments experts, with deep local market knowledge, operates across 60 countries and 14 time zones, providing 24/7 support. Paymentology is deeply committed to expanding financial inclusion globally, changing lives and positively impacting the communities in which it operates.
