Explicit Selection was engaged to conduct a comprehensive gap analysis across three critical operational domains, from a technical specification point of view: Authorization, Clearing & Settlement, and Disputes.  

‍

The goal was to:

1. Identify and document all technical differences across product specifications

2. Assess the business and operational impact of these gaps

3. Provide actionable recommendations for consolidation and standardization

4. Benchmark the proposed unified approach against industry standards and best practices

‍

This multi-phase initiative aimed to create a roadmap toward unified technical specifications for credit products, ultimately simplifying operations, reducing costs, and enhancing the customer experience.

‍

Phase 1: Authorization

During this phase, we focused on comparing authorization-related technical specifications across product lines, covering:

• Authorization transaction processing rules and logic

• Authorization interfaces and protocols

• Network authorization services

• Transaction messaging standards and formats

• System usage and implementation guides

‍

Key outcomes

• Established baseline understanding of authorization specification differences

• Identified critical gaps impacting transaction processing capabilities

• Provided strategic direction for documentation consolidation

• Validated approach against payment industry standards

‍

Phase 2: Clearing &Settlement

This phase expanded the analysis to clearing and settlement functionality, examining:

• File exchange processes and sequences

• Settlement timing and cadence requirements

• Data transmission mechanics (FTP, web portals, APIs, etc.)

• Entity taxonomy (Issuing Processors, Issuers, Acquirer Processors, Acquirers, Merchants, Merchant Agents)

• Transaction data structures and supplementary data records

• Nine major document categories covering approximately 1,200+ pages of specifications

‍

The analysis covered both Acquirer-side and Issuer-side operations, focusing on inputs and outputs related to clearing and settlement file exchanges.

‍

Key outcomes

• Mapped complex clearing and settlement ecosystem differences

• Provided separate analysis for acquirer and issuer perspectives

• Identified opportunities for ISO standards adoption

• Delivered actionable consolidation roadmap for settlement operations

‍

Phase 3: Disputes

In the final phase, our team addressed dispute management functionality, examining:

‍

• Dispute file and information exchange processes

• Dispute initiation and resolution workflows

• File upload/retrieval sequences and timing

• Data transmission mechanics and protocols

• Oversight, tracking, and compliance governance

‍

Key outcomes

• Completed the comprehensive gap analysis across all three operational domains

• Provided a unified view of dispute processes across all product specifications

• Benchmarked against industry standards

• Delivered final piece of the consolidation roadmap

‍