Cardis Technology

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Traditional card products require each transaction to be individually processed, end-to-end, through the payment system (authorization, clearing, reconciliation, et al.). The resulting direct variable costs for each transaction incurred by the payment service providers are too high for low-value payments (LVP)—there is either a loss for payment service providers, or fees that are too high for the merchants.

Variations on debit/credit cards that use the same processing model (e.g. prepaid, contactless/NFC, mobile/digital wallet solutions) are facing the same economic issues, because the cost structure does not change.

The Cardis Solution provides for game-changing economics by eliminating individual transaction processing and reconciliation on a consumer account basis. Patented aggregation technology enables several consumer LVP transactions to be handled as one larger value transaction processed through a payment network (credit, debit, ACH). By spreading the cost of processing of this single larger value transaction over a series of small payments, the overall cost is significantly reduced.

Cardis’ patented audit system

While there are several modes of payment, in terms of consumer billing for small payments, (prepay, pay now, pay later), analogous to prepaid, debit and credit cards, the same principle applies each time. The issuer (bank or non-bank) automatically authorizes a predefined aggregate amount and thereby provisions for the payment form factor (card, mobile device, digital wallet) to have a specific digital balance available for offline LVP purchases. The consumer can spend this balance making purchases at multiple retailers (open loop deployments), or at specific retailers (closed loop deployments). The consumer does not need to worry about having a sufficient digital balance to complete the purchase, since authorizations to replenish digital balances are automatically initiated to ensure uninterrupted operation.

Traditional account based transaction processing systems (debit, credit, prepaid, et al.) always require reconciliation per consumer account between records submitted from the acquirer/merchant side with the records on the issuer/account side. With Cardis, the digital balance is represented by auditable, digital, stored value units that are exchanged as part of a transaction. Any manipulation of transaction records or digital balances would be detected by Cardis’ patented audit system that is combined with hierarchical and layered system-wide accountability checks. Accordingly, the transaction records are final and sufficient for settlement without shadow accounting, and without any transaction processing and reconciliation on a consumer account basis.

Cardis’ protection of sensitive payment data

The Cardis Platform uses state-of-the-art tokenization to protect sensitive payment card data. The tokenization solution ensures that online merchants never receive customers’ sensitive payment information thus obviating the need for costly PCI DSS certifications and ongoing audits.

Cardis transaction processing steps

The Cardis Platform uses state-of-the-art payment industry security mechanisms to protect transaction processing integrity. Three fundamental steps are always performed, whether the Cardis transaction processing front-end is offline or online:

  1. The merchant component performs cryptographic authentication of the consumer component at the beginning of each transaction.
  2. The consumer component provides cryptographically signed transaction record at the end of each transaction.
  3. Only transaction records with valid cryptographic signatures are included into settlement totals during End Of Day Processing and Accumulation.

Profit from our processing

If you would like to learn more about how Cardis can transform your business and increase your profits, contact us below to discuss your needs.