Renat Shakirov, Avers Bank: ‘Having our own payment system in the country is an element of national security’

Mir will come soon

Mr. Shakirov, new cards of Mir National Payment Card System (NSPK) were issued in December 2015. When will Avers Bank be a participant of NSPK?

'Now the recruitment of participants of this project is being carried out, services are added to the card, acquiring bank network that would accept this card is opened. Our bank is not standing apart. We are to be a participant of Mir Payment System until 1 July 2016. The goal is to open our own acquiring network for this system until 1 July. I'm sure that we will have a test emission of the cards of the new payment system by the end of the year.

It should be understood that we are at the beginning of the action of Mir Payment System, and some advanced technologies used by other payment systems are not available. For instance, contactless payment of РayPass and Mastercard or PayWave in Visa Payment System. The national payment system doesn't have this service at this moment. Undoubtedly, it will appear soon. International payment systems had been developing for tens of years and have a certain technological reserve. But Mir Payment System won't make the mistakes made by these companies during their development.

What is the difference of these cards from the cards of international payment systems?

This card has certain differences. Any payment system fixes certain tariffs for both acquiring bank and issuing bank. In the end, these tariffs transfer to sales and service points and clients. Tariffs of Mir Payment System are significantly lower in some respects. This is why it will be beneficial to use these cards for both banks and sales and service companies. It will have an impact on clients too. When you pay for your purchase, the sales and service company pays fees to the bank whose terminal it uses. The size of the fee is 1,5-2,5% of the sum of the purchase. Why is it too much? International payment systems fix a domestic tariff at about 1,3%. This figure of Mir Payment System will be 0,5% on average. Sales and service points correct their prices for goods reducing it, respectively. Such tariffs will allow Mir Payment System to compete with international payment systems and influence their tariff policy. In general, having our own payment system in the country is an element of national security.

Avers issues smart cards. But those who have magnetic stripe cards can continue using it. These cards will be substituted in time according to the plan.

Will there be a gradual substitution of cards of international payment system with Mir Payment System?

The current legislation presupposes that state organizations will use Mir cards, people will receive salaries, grants and pensions, so the degree of the distribution of these cards will grow. But at present these cards cannot be used abroad. It is planned to issue co-badged cards, when two payment systems are fixed in one card, and it can be used within the country and abroad. Agreements on the issue of co-badged cards of Mir Payment System under Mir-Maestro, Mir-JCB и Mir-AmEx brands have already been signed.

What will reduce fraud risk?

All cards issued by Russian banks are to have chips from 1 July 2015. Could you tell about this process in Avers Bank?

Avers Bank issues smart cards. But those who have magnetic stripe cards can continue using it. These cards just will be substituted in time, according to the plan.

Will the chip of the card enhance its reliability?

Yes, smart card provides an increased security. The chip contains a big volume of information. It is more difficult to fake it than the magnetic stripe card. The chip also requires a PIN. This type of cards is more progressive in terms of security. Generally speaking, there are three protection elements of a card. Security of card starts with alerts via SMS. All banks, including ours, offer this service. Alert allows the client to get all information about all transactions of his or her card. This service should be connected, first of all, to provide secure card transactions.

Fraud monitoring system is the second security element. It monitors shady transactions, all incoming and outgoing information for fraud. 3-D secure is the third element working while purchasing goods on the Internet. It is a verification code for online card transactions. How does it look like? You receive a message, and if you agree to make the transaction, you enter a code. If not, you can block the unauthorised use of your card. This security element of cards is being elaborated in Avers Bank now. We will launch it by autumn 2016. The first two elements have been implemented.

Continuing to speak about the securityof cards. Can money be withdrawn from a card if only its number is known?

Fraudsters cannot use the card knowing its number only. They need to know the name, surname and patronymic of the card holder, the card expiration date and its CVV2. The latter is a group of three digits situated on the back of the card below the magnetic stripe. Unauthorised transactions can be made using these data. This is why I recommend everyone to use SMS alerts. This service helps to stop an unauthorised deduction of money. If it happened, you can call the call centre of the bank and block it or do it in Avers online service. The application is to be filed on the same or next day. Then you can be given your money back.

If the bank found out than it was an illegal withdrawal, when will it return the money to the client?

The Federal Law No.161 presupposes that a client's application is considered during 30 days. The client will be given the money back during the same period, respectively.

Now many people use Internet shops, we buy even flight and railway tickets online. How to pay for services securily?

It is better to use virtual cards for online purchases. It is an online card, it has a number and a CVV code. Purchasing something on the Internet, it is necessary to transfer the sum of the purchase to the virtual card. It can be done in online banking. Even if information about card will appear somewhere, it won't be possible to withdraw money from your card because the limit was ran out. And the data of the main card are not known on the Internet.

The limit of the virtual card can be fixed higher than the sum of the purchase bought online. In this case, it is possible to fix a limitation to a one-time purchase that cannot be exceeded. It will also reduce the fraud risk. The card might be blocked on your own or simply deleted.

There is a line on the back of the card where it is necessary to put a signature. Cards are not accepted without this signature even. What do we need it for?

There must be client's signature. PIN is a form of proof of a transaction. It can be required by both chip and magnetic stripe cards. Signature on the back of the card is necessary for the operator who compares it with the signature on the bill.

It is clear it's better to keep hold of the card. How should we pay in the restaurants then?

Nowadays there are mobile devices for acquiring transactions – POS terminals. For this reason, I recommend asking the waiter to bring this device, so that you will be able to pay the bill at the table without giving your card to others.

Visa or MasterCard?

What is the difference of Visa and MasterCard? Do these different payment systems have any advantages?

Standard Visa Classic and MasterCard Standart cards have a completely comparable level of service in Russia. It refers to possibilities of payment for purchases in shops, on the Internet, fees for service, cash withdrawal and other transactions via cash dispensers. In other words, there is no principle difference when it is used in Russia. As a rule, the main differences appear abroad because of currency conversion. The US dollar is the main currency of Visa Payment System. It means that transactions connected with the currency conversion will be made via dollar. The main currency of MasterCard is both the US dollar and euro. So, it is necessary to remember the main rules: it's better to use MasterCard in Europe and Visa in the USA. In Russia, there is no difference.

Is it necessary to inform Avers Bank about a coming trip abroad to avoid its block when something is bought abroad?

It is not necessary to inform the bank, but it is necessary to check the limit of active transactions of your card. Then you can feel free and go. Customs services won't have any queries because card is not a cash asset.

Transaction control system will monitor your payments. If you made a transaction on the territory of the Russian Federation, and the next transaction was made in ten minutes and abroad, the system will understand that it was an unauthorised withdrawal. If it happened some time later, the system will understand you are just abroad.

And if the card was stolen abroad, how to block it?

If it happened abroad, you should call 8 800 700 4321, it is a united federal number of our bank. You will be given several questions to identify you, then your card will be blocked. A new card will be issued when you come back to the Russian Federation. And fraudsters won't be able to use the card, and all your money will be on your account. Our recommendation to those who go abroad is to have several cards and preferably cards of different payment systems.

Some cards have quite a limited number of transactions per day. Is it possible to change the limit?

There are certain limits to provide the security of money kept on the account. If you want to carry an additional risk and change the number of transaction made per day, you need to file an application in the bank. The bank will change the limits for the number of transactions basing on your application. But in many cases, the number of transactions made per day, the maximum sum of money that can be withdrawn, or the maximum sum of one-time withdrawal satisfy our clients.

And how much is it?

It depends on the type of the card. For instance, MasterCard Standart of Avers allows to make 20 transactions per day, the limit of cash withdrawal is 200,000 rubles per day, the maximal quantity of money withdrawn once does not exceed 100,000 rubles. The number of permitted transactions varies from the type of the card: there are standard and premium cards. The higher the status of the card, the more transactions you can make.

Fraudsters cannot use the card knowing its number only

Let's imagine a situation: a person is trying to withdraw money from a cash dispenser, but at midpoint the device makes a mistake and doesn't give the card back, deducts the sum you wanted to withdraw but doesn't give you the money. What should we do then?

In this case, it's necessary to call the bank that issued the card or block it and specify why the transaction went wrong or wasn't made at all. During cash collection, there will be detected a surplus of money, and the client will be given the money back. As a rule, this procedure takes about 5-7 days.