Faster Payments QIAT
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Faster Payments QIAT Proposer: InterComputer Corporation February 21, 2017 TABLE OF CONTENTS Original Proposal 2 Q&A Response 75 Additional Questions Submitted and QIAT Response 101 Draft QIAT Assessment 117 (Includes proposer comment in Appendix A & B) 132 Task Force comments 138 Proposer response to Task Force comments 146 Final QIAT Assessment 170 “The proposer, InterComputer Corporation, has declined to grant a license under section 5(b)(iv)(1) of the Faster Payments Task Force Participation Agreement for any Essential Claim incorporated in its Proposal and included in the Final Report. An Essential Claim is any patent or patent application owned by a proposer or an Affiliate of the proposer in any jurisdiction in the world that would necessarily be infringed by implementation of the proposer’s Proposal. Specifically, InterComputer Corporation has declined to grant a license for any Essential Claim under U.S. Patent No. 8,380,622 entitled “Secure Electronic Payments with Reconcilable Finality”. InterComputer Corporation identified the disclosures in Executive Summary, Pages 5-8 and Part A, pages 13-30, as portions of the Proposal that are relevant to its Essential Claim. As with all proposals, any entity or person wishing to utilize a proposal should contact the proposer. Neither the Federal Reserve Banks, the Federal Reserve Board, nor the Faster Payments Task Force make any representations regarding the ownership of or the availability for use of any intellectual property disclosed in a proposal, and any entity or person seeking to use part or all of any proposal should secure the appropriate licenses. Faster Payments Task Force Proposal The InterComputer Network (ICN) InterComputer Interoperating System (IC IOS) PrivateLine Payments (PL Pay) Trusted Settlement System (TSS) April 30, 2016 Submitted by: Scott M. Volmar, InterComputer Corporation © 2016 Federal Reserve Banks. Materials are not to be used without consent. Contents EXECUTIVE SUMMARY ............................................................................................................ 5 USE CASE COVERAGE ............................................................................................................... 9 Supported Use Case Coverage Summary.................................................................................... 9 Cross-border Use Case Coverage .............................................................................................. 10 PROPOSAL ASSUMPTIONS ..................................................................................................... 11 Foreign Exchange and International Real-time Payments ........................................................ 11 PART A: DETAILED END-TO-END PAYMENTS FLOW DESCRIPTION ........................... 13 INITIATION ............................................................................................................................. 13 AUTHENTICATION................................................................................................................ 17 PAYER AUTHORIZATION .................................................................................................... 19 APPROVAL BY THE PAYER’S PROVIDER ........................................................................ 21 CLEARING ............................................................................................................................... 22 Trusted Settlement System (TSS) ......................................................................................... 23 Process Flow for Clearing, Settlement, Receipt (notification) and Reconciliation .............. 24 RECEIPT ................................................................................................................................... 29 SETTLEMENT ......................................................................................................................... 29 RECONCILIATION ................................................................................................................. 30 PART A, SECTION 2: USE CASE DESCRIPTION ................................................................... 31 B2B Use Case ....................................................................................................................... 31 B2P Use Case ........................................................................................................................ 34 P2B Use Case ........................................................................................................................ 35 P2P Use Case ........................................................................................................................ 37 PART A, SECTION 3: USE CASE BY EFFECTIVENESS CRITERIA .................................... 38 PART B: BUSINESS CONSIDERATIONS ................................................................................ 40 IMPLEMENTATION TIMELINE ........................................................................................... 40 VALUE PROPOSITION AND COMPETITION..................................................................... 43 Value Proposition.................................................................................................................. 43 © 2016 Federal Reserve Banks. Materials are not to be used without consent. 2 Competition........................................................................................................................... 44 INTEGRATION EFFORT ........................................................................................................ 45 B2B Use Case ....................................................................................................................... 45 P2B Use Case ........................................................................................................................ 45 B2P Use Case ........................................................................................................................ 46 P2P Use Case ........................................................................................................................ 46 PART C: SELF-ASSESSMENT AGAINST EFFECTIVENESS CRITERIA ............................ 47 UBIQUITY................................................................................................................................ 47 EFFICIENCY ............................................................................................................................ 49 SAFETY AND SECURITY...................................................................................................... 51 SPEED (FAST) ......................................................................................................................... 54 LEGAL FRAMEWORK ........................................................................................................... 55 GOVERNANCE ....................................................................................................................... 57 ADDENDA ................................................................................................................................... 58 Addendum A ................................................................................................................................. 59 THE INTERCOMPUTER INTEROPERATING SYSTEM (IC IOS) ..................................... 59 Hosted / Distributed Architecture ......................................................................................... 59 Digital Identities and Authorities .......................................................................................... 59 ANSI/ITU/ISO Object Identifiers (OIDs) Make InterComputer a Registration Authority .. 60 The Secure Interface Device (SID) ....................................................................................... 61 Installation Process ............................................................................................................... 62 Addendum B ................................................................................................................................. 64 INTERCOMPUTER INTEROPERATING SYSTEM (IC IOS) PATENT CLAIMS ............. 64 Addendum C ................................................................................................................................. 67 THE INTERCOMPUTER NETWORK LEGAL FRAMEWORK .......................................... 67 Addendum D ................................................................................................................................. 68 CENTRALIZED ARCHITECTURE, NETWORK OPERATIONS, SECURITY AND EFFICIENCY ............................................................................................................................ 68 Addendum E ................................................................................................................................. 70 © 2016 Federal Reserve Banks. Materials are not to be used without consent. 3 DIRECTORY STRUCTURE .................................................................................................... 70 Addendum F ................................................................................................................................. 71 THE BIG PICTURE OF THE RISK ENVIRONMENT .......................................................... 71 © 2016 Federal Reserve Banks. Materials are not to be used without consent. 4 EXECUTIVE SUMMARY InterComputer’s real-time payments solution