INTERIM PROJECT REPORT ON
“OPTIMIZATION OF FLEET CARD MANAGEMENT (XTRAPOWER) PROCESS IN INDIANOIL.”
BY: MADHU JAIN (08BSHYD0387) MOBILE NO: +91 9989509443
INDIANOIL CORPORATION LIMITED BANDRA (E),
(INDIAN OIL BHAVAN, G-9, ALI YAVAR JUNG MARG, MUMBAI-400 051)
P ROJECT CO-ORDINATOR :
FACULTY GUIDE :
Shri V. N. Garg
Mr. S.V. Bidwai.
DGM (Finance) HO,
Professor (IBS, Hyderabad)
Ph. No. 022- 2644 7430
PROJECT MENTOR:
Mr. Moni Chakraborty Manager (Finance) HO, Ph. No. 022- 2644 7435
PROJECT STARTING DATE: 23 FEB 2009 DATE OF SUBMISSION: 18 APRIL 2009 P a g e
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INTERIM PROJECT REPORT ON
“OPTIMIZATION OF FLEET CARD MANAGEMENT (XTRAPOWER) PROCESS IN INDIANOIL.”
BY: MADHU JAIN (08BSHYD0387)
An interim report submitted in partial fulfillment of the requirements of Summer Internship Program.
ICFAI BUSINESS SCHOOL, HYDERABAD
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CONTENTS
INTERIM PROJECT REPORT ON........................... ...................................................... ..................................................... ...................................... ..................... ......... 1 Indianoil Corporation Corporation Limited (INDIAN OIL BHAVAN, G-9, ALI YAVAR JUNG MARG, BANDRA (E), MUMBAI-400 051)......................... .................................................... ...................................................... ........................................................... ......................................... ......... 1 PROJECT STARTING DATE: 23 FEB 2009
..............................1 .............................. 1
DATE OF SUBMISSION: 18 APRIL 2009....... ............... ................ ............... ............... ............ ........ ........ ........ ........ ........ ...... .. 1 INTERIM PROJECT REPORT ON........................... ...................................................... ..................................................... ...................................... ..................... ......... 2 ICFAI BUSINESS SCHOOL, HYDERABAD ....... ............... ............... ........... ........ ........ ........ ........ ....2 2 Contents ........ ................ ............... ............... ................ ............... ............. .......... ........ ........ ........ ........ ........ ........ ...... .. 3 Abstract.......................................................... ..................................................................................... .................................................................. ....................................... ........... 4 Section-1:: Background ........ Section-1 ............... ............... ................ ................ ............... ............... ................ ............... ............... ................ ................ ............... ........... ........ ........ ......5 1.1 about iocl
.............................................. ....................... .............................. .......5 5
operating structure ........ ................ ............... ............... ................ ............... ............... ................ ................ ............... ............... ................ .............. .......... ........ ........ ........ ....... ... 5 iocl products........................ ................................................... ...................................................... .................................................................. ....................................... ........... 5 Section-2 INTRODUCTION ....... ............... ................ ................ ............... ............... ................ ............... ............... ................ .............. .......... ........ ........ ........ ........ ........ ......6 2.1 CUSTOMER LOYALTY PROGRAMS IN INDIANoil:.......................... INDIANoil:..................................................... ............................................ ................. 6 1.2 IOCL’s xtrapower ........ ................ ............... ............... ................ ................ ............... ............... ................ ............... ............... ................ ................ ............... .............. .........7 2.3. XTRAPOWER Features, Objectives, & Benefits....... ............... ................ ............... ............... ................ ................ ............ ........ ........ ...... .. 10 3.1. Parties to the program........ ................ ................ ............... ............... ................ ............... ............... ................ ................ ............... ............. .......... ........ ........ ......12 3.2. Business process....... ............... ............... ............... ................ ................ ............... ............... ................ ............... ............... ................ ................ ............... ............. ...... 16 3.2. a. Online Registration........................... ...................................................... ................................................................. .................................................. ............ 17 3.2. a. Offline Registratio Registration n....... ............... ................ ............... ............... ................ ............... ............... ................ ................ ............. ......... ........ ........ ........ ........ ...... .. 20 3.2. c. personaliza personalization tion....... ............... ................ ............... ............... ................ ............... ............... ................ ................ ............... ............... ................ ............. ......... ....... ... 24 3.2. d. user pin change........ ................ ............... ............... ................ ................ ............... ............... ................ ............... .............. ........... ........ ........ ........ ........ ........ ...... .. 27 3.2. e. reload....... ............... ............... ............... ................ ................ ............... ............... ................ ............... ............... ................ ................ ............... ............... ............... ........... .... 28 3.2. h. sale.......................... ..................................................... ...................................................... ..................................................................... .......................................... .... 37 37 3.2. i. void.......................... ..................................................... ...................................................... ...................................................... .......................................... ...................... ....... 41 3.2. a. end-of-day/bat end-of-day/batch ch settleme settlement nt....... ............... ............... ............... ................ ................ ............... ............... ................ ............... ............... ............. .......43
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3.2. j. hot listing........ ................ ............... ............... ................ ................ ............... ............... ................ ............... ............... ................ ................ ............ ........ ........ ........ ....... ... 47 4.2. references ........ ................ ................ ............... ............... ................ ............... ............... ................ ................ ............... ............... ................ ............... .............. ........... ........ .... 49
ABSTRACT On March 2004, IOCL launched a loyalty program based smart card called ”XTRAPOWER FLEET CARD” designed designed specific specifically ally for the Fleet Fleet Operators Operators and Corporate Corporate Customers Customers.. Fleet Fleet Card program program facilitate facilitates s fleet Operators to carry out cashless transactions for purchase of Fuels/Lubes at the designated Retail Outlet of IndianOil and to keep track of mileage, fuel consumption and vehicle performance. Fleet Card has two variants viz. Prepaid and Credit. The value proposition to the Customer in this program is flexib flexible le paymen paymentt option options s includ including ing credit credit,, centra centraliz lized ed billin billing, g, reward reward points points,, and variou various s report reports. s. Concurrently, the inbuilt yellow-colored microchip in the Fleet Card helps in identifying the customer with every transactions of purchase recorded by the web and relevant details posted on the net at the Central Server monitored by a German based Software Company and Service Provider of IOCL, AXALTO. As per the stringent guidelines drawn by Shri V. N. Garg, DGM (Finance, IOCL), the project confines specifically and categorically to the practical application, operational, and execution of the Fleet Card program of IOCL on the web devoid of its technical software installation. The Scope of my project entails Optimi Optimizat zation ion of the Fleet Fleet Card Card Manage Managemen mentt (Xtrap (Xtrapowe ower) r) proces process s of Indian IndianOil Oil.. In depth depth study study and analysis of IOCL Fleet card processes and overall approach in the market in terms of carrying out cashle cashless ss transa transacti ctions ons for purcha purchase se of fuel/l fuel/lub ubes, es, covers covers the follow following ing areas areas in my interi interim m report report presentation. •
Online and manual enrollment by a customer to the Fleet Card Program.
•
Personalization process based on the information about the customer in the application form.
•
Activation of the Fleet Card issued to the Customer.
•
Manual and online reload process to recharge the Fleet card.
•
Sales process at the Retail Outlet of IndianOil using the Fleet Card having value in it.
•
Void process in case wrong sales transaction entry done by the Retail Outlet.
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•
Settlement process of daily Fleet Card sales by the Retail Outlet of IndianOil.
•
Hot listing process in case Fleet Card is stolen, lost or mutilated by the Customer.
SECTION-1: BACKGROUND
1.1 ABOUT IOCL Indian Oil Corporation is India’s largest commercial enterprise, ranking 116th on the Fortune Global 500 listing (2008). It began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Indian Oil and its subsidiaries account for 47% share in petroleum products market, 40.4% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tons per annum. Indian Oil also operates the largest and the widest network of fuel stations in the country, numbering about 16,600. The company has retained its financial position in the market where the times have been quite tough in terms of the volatile crude oil prices, intensifying competition, etc. It is the frontrunner petroleum downstream company of India (Oil & Gas category) in the Financial Express's 'FE 500' listing released for the year end 2008. It has been ranked in the top slot in the Business Week’s Top Companies for 200809.
OPERATING STRUCTURE
Downstream Operations Pipeline
Refining
Transportatio n
Fuel Marketing
Research and Development
IOCL PRODUCTS Indian Oil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphtha, bitumen, paraffin, kerosene etc. Some of the
prominent brands of IOCL are Xtra Premium branded
petrol, Xtra Mile high-speed diesel, Servo lubricants, Indane LPG, Auto gas LPG, and Indian Oil Aviation.
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SECTION-2 INTRODUCTION
2.1 CUSTOMER LOYALTY PROGRAMS IN INDIANOIL: In India, in the field of marketing generally and more specifically in the field of retailing, a Loyalty Card is a plastic card, visually similar to a credit card or a debit card, that identifies the card holder as a member in a commercial incentive programme. Retail establishment or a retail group may issue a loyalty card to a customer who in turn can use it for identification while dealing with the retailer on commercial aspect. By presenting the card, the customer/card holder is typically entitled to either a discount on the current purchase or an allotment of Loyalty Points that can be used for future purchases. For the petroleum retail sector in India, recent years have exhibited fundamental changes in the way business is being done. With the deregulation of the sector has seen itself exposed to the new market forces. The competitive threat has increased in length and breadth. With the private players entering the fray, the pricing is increasingly market driven and customers are demanding more. With the competition becoming unbendable, the smarter players have realized that the best way to do business is to lock the customers into a habit they cannot break.
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1.2 IOCL’S XTRAPOWER 2.2.C. “XTRAPOWER”-PROGRAM DETAIL With the dismantling of Administered Price Mechanism on 1 st April 2002, the marketing of transportation fuels has been opened for private players in the domestic as well as international sector. The surge in automobile sales has led to significant investments being made to develop and expand the petroleum retail market. According to US-based consultancy Keystone, automobile sales that number about a million vehicles is likely to grow to about 20 million a year by 2030, making India, the third largest automobile market in the world.
Earlier all the fuels and lubes transactions were done in cash, which posed inconvenience to both the customers and the dealers. This was one of the primary reasons behind the launch of Fleet Program in India. The pioneer in the field of fleet Card was BPCL (Bharat Petroleum Corporation Limited) with its “Smart Card”-based Petro Bonus Program launched in September 1999. Indian Oil Corporation Limited did not enter the field of loyalty program until mid 2002. IOCL was exclusively focusing their initial marketing efforts largely on building retail outlet brand and services before launching a range of cardbased programs like BPCL. In the Transport (Roadways) Sector, market share of IOCL and its domestic & private competitors is shown below:
In order to keep its market share and customer base intact, in March 2004 IOCL launched a loyalty program based smart card called ”XTRAPOWER FLEET CARD” for the Fleet Operators, wherein they can make purchase at designated ROs(Retail Outlet of IOCL). This debit and credit card based program
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offered the customers all the facilities of a regular debit/credit card in addition to a host of specific services including transaction fees waiver, surcharge waiver, insurance coverage, discounts, increased points earning opportunities, fuel for loyalty points etc. this program leveraged the wide acceptance of the credit/debit card as a payment device and an established reader network. Thus, Xtrapower Fleet Card Program of IndianOil has been launched in two variants: Prepaid & Credit. The Credit form of the Fleet Card has been launched in association with Sundaram Finance Limited (SFL) with the objective of increasing the loyalty of the commercial vehicle owners / operators & corporate to exclusively patronize IOCL Retail Outlets for meeting their requirements of automotive fuels and lubes. Fleet Card transactions were started in April 2004. A survey was done by the Marketing team of IOC, which shows the percentage of enrollment with the Fleet Card Program (shown below):
Enrollment with Fleet Card Progra 15%
51%
15%
25%
IOCL BPCL HPCL Reliance
Every time customer fills the fleet with fuel and lubes (lubricants) using their Xtrapower fleet Card at the designated ROs of IOC, they earn loyalty points also called XTRA points. These XTRA points can be exchanged either with lucrative gifts from XTRAPOWER Rewards Catalogue or can be redeemed into free fuel and lubes. Earlier 5 points were awarded on Rs. 100 worth purchase of fuel/lubes, which has now changed to 30 points. The monetary value of each point was 8 paise initially but now it has changed to 1 paise per point. Once the enrollment is through for the Fleet Card Membership, the Customer is provided with two types of cards i.e. Fleet Card and Fleet Control Card. Fleet Control Card is a token card issued to all the Card
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Members enrolled under XTRAPOWER Fleet Card Program. The Fleet Control Card contains Customer Name, Control Card Number and Customer ID. If at any point of time, a card member decides to enroll more vehicles under the Fleet Card Program, the card member has to fill a small application form giving the details of the additional vehicles to be enrolled under the program. The membership of the Card Member for XTRAPOWER Fleet Card is applicable for a period of one year from the date of card issuance. One can renew the membership by paying the annual fees. The XTRAPOWER Fleet Card is sent to the Card Member in a dormant condition. This is done essentially to protect the Card Member against any misuse of his/her fleet card(s) before he/she actually receives them. To activate the XTRAPOWER card one needs to move to the nearby-designated RO (Retail Outlet) of IOCL. The Fleet Cards are activated by changing the default PIN on the card terminal at a RO of IOCL. Once the card is activated, Card Member can easily control his/her fuel/lubes expenses better through the different limits prescribed by the IOCL applicable to each of the fleet card (explained later). It is mandatory to specify the above-mentioned card limits in the application forms or else the application form will be treated as incomplete. The limits on the card can however be changed subsequently by giving a written request to the Fleet Marketing Officer.
FRONT VIEW OF THE XTRAPOWER FLEET CARD
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Once the Card is issued the swiping machine reads the “ smart yellow colored chip” present on the left upper corner of the Fleet card. Except the Smart Chip all information present on the card are embossed on the card once the Card is sent to personalization centre for data personalization after the interested customer enroll to the program.
BACK VIEW OF THE XTRAPOWER FLEET CARD
The back portion of the card does not contain any vital information of XTRA importance. It only imparts the IndianOil’s toll-free customer helpline i.e. 1600 425 5599.
2.3. XTRAPOWER FEATURES, OBJECTIVES, & BENEFITS
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2.3. A. FEATURE OF FLEET CARD PROGRAM: Fleet Card Program covers two variants VIZ. Prepaid Card & Credit Card. Under the Prepaid Card
•
system, the Card Member has to first reload the card with money and then use the card. Under Credit Card system, Credit partner of IOCL i.e. Sundaram Finance Limited extends credit to Card Members for purchase of fuel/lubes through Fleet Card. XTRAPOWER Fleet Card is usage as well as vehicle specific which states that the Card must be
•
used for the purpose of purchasing fuel/lubes for the automobile for which the card has been issued. This is for the control of the Card Member on the expense incurred on fuel/lubes (lubricants) and to keep track of the transaction on each of his fleet vehicles, which are enrolled under the said program. It provides flexible options for Cash Loading at Designated ROs (Retail Outlet) of Indian Oil. Hence,
•
the two Options are –Offline Reload (individual reload of card), where reloading is done manually & CCMS (Customer Cash Management System) Reload (Remote reload of cards through lump sum deposit of cash at a convenient place), also known as online reload. •
It facilitates Card to Card Fund Transfer for the convenience of the Customers.
•
Under this program, the XTRAPOWER membership is valid for a period of one year from the date of card issuance. One can renew his membership by the annual fees. It offers option of Credit, for instance, through Credit Partner like Sundaram Finance Limited.
•
•
It gives provision for Different Limits on the Card – Transaction Limit, Daily Limit, Cash Purse Limit & Monthly Limit.
•
Transaction Slip for every Transaction undertaken on Fleet Card. Every time the customer vehicle makes a purchase of fuel/lubes at the designated ROs of IOC, a transaction slip is generated. The transaction slip contains the date and time of the purchase, the value of the purchase and the reading of the odometer at the designated ROs of the IOC.
•
It gives attractive Rewards Program, for example, 30 XTRA Points per Rs 100 purchase of Fuel @1p i.e 0.3%.
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•
It introduces wide-range of Reward Items including Fuel / Lubes from the XTRAPOWER reward catalogue managed by Royal Image.
•
Enrollment for additional Fleet Card(s) can be done at any point of time. For this, the customer needs to fill up an application form giving details of the additional vehicles to be enrolled.
•
XTRAPOWER gives free Personal Accident Insurance (Rs 1 Lac per Card, Max. Rs 20 Lac) for Card member and Vehicle Crew (Driver – Rs. 50,000, Co-Driver – Rs. 25,000). Also Lost Card Liability Cover (Max. Rs. 16,000).
•
Fleet Owner are provided with mediclaim of Rs. 2500/- Per card (Max – Rs 50000/-), and Vehicle Crew a sum of Rs. 2500.
•
•
•
IOCs Fleet Program imparts instant Redemption of XTRA Points for Fuel & Lube. It also provides a dedicated website for customer grievance handling i.e. www.iocxtrapower.com. It also shares a Toll-free Customer Helpline i.e. 1800 425 5599 which can be accessed by the card members and the public at large.
2.3. B. OBJECTIVE OF THE IOCL BEHIND LAUNCHING THIS PROGRAM: •
As per the law of land, cash transaction beyond Rs. 50, 000 was not allowed. Therefore, to overcome it IndianOil launched the Smart Card system.
•
To preserve & increase its market share (i.e. 51% in the Transport Sector in the Year 2008-09).
•
To retain and expand the existing customer base (3, 70, 000 Customers in the Year 2008-09 and is expected to increase by 50,000 Customers in the Year 2009-10).
•
To boost the revenue and profitability by accelerating the sales (Revenue= Rs. 12,183 Crores for 2008-09; Profit Margin= Rs. 350 Crores for 2008-09).
SECTION-3 XTRAPOWER-BUSINESS PROCESS
3.1. PARTIES TO THE PROGRAM This section deals with the various parties/business entities involved in the program.
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3.1. A. PROGRAM MANAGER: IOC is the program manager, which is the owner, sponsorer, and promoter of the Fleet card program. Its functions in the Fleet Card Program are enlisted below: •
Defining the function of the program.
•
Defining the Business rules of the program.
•
Appointing the operational partner of the program.
•
Identifying the trading partner of the program like Card issuers, merchant Acquirers, Card members etc.
•
Providing settlement services between issuers and the acquirers.
3.1. B. CARD ISSUERS: Card issuers issue fleet Card to the members enrolled to the program. Under this Program IOCL is the card issuer. Its functions in the Fleet Card Program are enlisted below: •
Identification and enrollment of the card members
•
Verification of card member’s detail.
•
Management of card Holder and Card member’s database.
•
Personalization of smart Cards.
•
Hot list management for Card Holders and card members.
3.1. C. MERCHANT ACQUIRER: Merchant acquirer acquires merchants for the fleet Card program and is responsible for transactions at the Merchant’s end. It also takes cares of the Campaign on behalf of the Card issuer. IOCL is the merchant acquirer in this program. Its functions in the Fleet Card Program are enlisted below:
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•
Identification and enrollment of merchants/retail outlets in the program.
•
Management of the merchant database.
•
Settlement of the merchants.
•
Maintain the Retail outlet also called POST.
3.1. D. MERCHANT: Merchant is the provider of service for issuer’s products and has a POST(s) installed at his premise. Batch settlement is done by the merchant on POST to transfer transactions from POST to Acquirer. Thus, IOCL retail Outlet having the POST installed will be the merchant in this scheme.
3.1. E. CARD MEMBERS: Fleet Operators and the corporate customers are the card members in this program. Its functions in the Fleet Card Program are enlisted below: •
Identification of vehicles for Fleet Card.
•
Distribution and management of these Cards.
•
Arrange for prepaid or credit facility on the cards for its Card Holder through self-finance or through any credit partners.
•
Defining limits for the Card Holders within this scheme.
3.1. F. CARD HOLDERS: Card Holder is the end user, typically the truck driver or a taxi driver who actually uses the Fleet Card for purchasing IOC products offered by the merchant.
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3.1. G. CREDIT PARTNERS: Credit Partners are both banking (like HDFC bank) and non-banking financial institutions, which provide credit to the card members like Sundaram Finance limited. The role of credit partners are: •
Provision of credit.
•
Risk management related to credit.
•
Collection of payments from the card members.
•
Reconciliation and settlement of financial transactions with the acquirer, IOCL.
•
Evaluation of risk and determination of credit limits of the Card members.
3.1. H. SERVICE PROVIDER: It includes both Application Service Provider and Loyalty Program Manager. In IOCL, the application service provider is AXALTO. It is a Germany based company, which has given the whole technical knowhow of Fleet Card Program and is responsible for the overall working and maintenance of the system whereas the later is the service provider that manages the redemption aspect of loyalty program for the Card Members with the assistance of the service provider AXALTO. Its functions in the Fleet Card Program are enlisted below: •
Management of loyalty reward items.
•
Induce and sustain the card usage.
•
Provide customer helpline for card members.
•
Suggest newer or improved loyalty schemes.
•
Create loyalty for card members by providing attractive loyalty schemes.
•
Perform complex data mining activities to analyze the impact of various schemes on card usage.
Fleet Card Program goes through the following steps:
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3.2. BUSINESS PROCESS
IOCL Fleet Card Application is a web-based system facilitating purchase of fuel/lubes through smart card at its Retail Outlets (ROs) across the Country. The end users are Card Members and the RO dealers. Thus, enrollment to this system can be done by the prospective customer either through internet or through paper forms available at merchant outlets, i.e.
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•
Online Registration.
•
Offline Enrollment(using paper forms) Manual Data entry. Entry using digital scanning of forms.
3.2. A. ONLINE REGISTRATION Online registration is the process where the customers can apply for the membership of the fleet card through internet. Once the online application form is filled by the interested Customers , the application form is sent for further verification, which is done offline. The process of online registration includes following steps: •
Once the online form is filled after visiting the web site and selecting the registration option respectively, a registration no. is displayed on the screen.
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•
This registration no. is further communicated to the customer via email or else a customer can take out a printout of it for future reference.
•
For any subsequent checking of the status, “registration Status” option is provided on the web site.
•
There is a payment gateway link on the website where the customer after registration can pay the requisite registration fee.
•
Simultaneously a mail is sent to the IOCL Fleet Card Managers in HO & the State Offices with a link to the online registration form for the enrollment of the customer.
After appropriate verification of the application form is done and once being enrolled as a card member, the customer can easily access the website by using his/her user ID and password.
Following Flow Chart shows how online registration actually takes place:
Online Registration
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R E M O T S U C
PAYMENT GATEWAY LINK CAN BE USED PAY REGISTRATION FEE
CUSTOMER VISITS FLEET CARD WEBSITE
CUSTOMER FILLS UP THE ONLINE REGISTRATION FORM
CUSTOMER SUBMITS THE FORM
REGISTRATION NUMBER WILL BE EMAILED TO THE CUSTOMER
T S O H
REGISTRATION NUMBER GENERATED AND SHOWN ON SCREEN
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3.2. A. OFFLINE REGISTRATION Besides online enrollment, Customer, if desires, can also go for offline enrollment by filling the application form available at various sourcing channels like IOCL offices/ Fleet Card Credit Partners/ Merchant Outlets. Offline Enrollment involves following steps: •
The Customer is provided with an Application form having unique Form ID and Source ID by the Fleet Card Sourcing Channel.
•
Once the form is filled it is submitted back to the sourcing channel along with the enrollment fees which is further provided to the Issuer(IOCL) for approval, which subsequently forwards it to the data
I. •
center
where
required
data
entry
is
made
either
of
the
given
two
ways:
Manual data entry:
At first, the information given by the customer in the application form is entered by the Data entry Operator in the System.
•
After data entry, the system will run to verify if the customer is already enrolled in the Fleet Card Program based on Customer name, Vehicle Registration number, Telephone Number, City, Pin Code etc.
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•
If the customer is not enrolled, then the system will enroll the customer and will generate a unique customer ID and a file containing personalization data. The Customer ID will be the primary account of the card member.
•
II. •
Personalization data file is sent to the personalization center for card personalization .
Form Scanning.
Same process is followed as in case of enrollment through paper forms up to the point the physical form reaches the Data Center.
•
The Application form is then scanned through digital scanner and is uploaded to the HOST(Central Server located at the Data Centre for receiving, storing, processing and sending data for the Fleet Card Program).
•
System will run the validation check to verify if the customer is already enrolled on the basis
of
Customer
Name,
Vehicle
Registration
Number,
Telephone
Number,
City/Town/Village, PIN Code etc.
•
•
The data entered is in form is checked for correctness on the basis of above information. If found OK, system will generate a unique Customer ID and a file contain Personalization data. The customer ID will be the primary account of the Card Member.
•
•
This enrollment request will be marked as “ New Enrollment Offline” in the database. In case if the request is for duplicate or additional cards, then the original customer ID will be retained.
•
Finally the personalization data is sent for Card personalization.
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OFFLINE ENROLLMENT- Manual Data Entry
T I D E R C R E N T R A P R E M O T S U C G N I C R U O S L E N N A H C E R T N E C A T A D
FOR CREDIT CARD THE APPLICATION FORM SENT TO CREDIT PARTNERFOR CREDIT APPRAISAL
CUSTOMER FILLS UP THE APPLICATION FORM & PAYS THE ENROLLMENT FEES
CUSTOMER RECEIVES THE CARD
Credit Card
APPLICATION FORM SENT TO ISSUER FOR APPROVAL
SOURCING CHANNEL PROVIDES THE APPLICATION FORM TO THE CUSTOMER
Prepaid Card Success APPROVED APPLICATION FORM SENT TO DATA CENTRE
MANUAL DATA ENTRY
VERIFY DATA
SEND PERSONALIZATION DATA TO PERSONALIZATION CENTRE
Failure MANUAL INTERVENTION
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N O I T A Z S I L A N O S R E P D R A C E R T N E C
PERSONALIZES CARD
CARD DISPATCH IN A WELCOME KIT
OFFLINE ENROLLMENT- Form Scanning T I D E R C R E N T R A P R E M O T S U C G N I C R U O S L E N N A H C
FOR CREDIT CARD THE APPLICATION FORM SENT TO CREDIT PARTNERFOR CREDIT APPRAISAL
CUSTOMER FILLS UP THE APPLICATION FORM & PAYS THE ENROLLMENT FEES
SOURCING CHANNEL PROVIDES THE APPLICATION FORM TO THE CUSTOMER
Credit Card
APPLICATION FORM SENT TO ISSUER FOR APPROVAL
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CUSTOMER RECEIVES THE CARD
E R T N E C A T A D
Prepaid Card SEND PERSONALIZATION DATA TO PERSONALIZATION CENTRE
Success APPROVED APPLICATION FORM SENT TO DATA CENTRE
FORM SCANNING
Failure VERIFY DATA
MANUAL INTERVENTION
N O I T A Z S I L A N O S R E P D R A C E R T N E C
PERSONALIZES CARD
CARD DISPATCH IN A WELCOME KIT
3.2. C. PERSONALIZATION
Once the customer gets himself/herself registered, card personalization is done. Personalization is the method of loading personal data on the user card at the personalization center, which is highly secured. It is divided into three parts: •
Key generation process: Here a set of 16 keys of 16 characters is defined which is to be injected/embossed in the Master Card.
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•
Key injection Process: Here the keys developed is injected from the master card to the User Card. Due to the need of the high security only a person either appointed or authorized by the IOCL can inject these keys.
•
Card personalization: Here the user card is physically embossed or engraved and the Card Personalization machine loads personal data. Personal data includes details like Card ID, Card Member Name, Vehicle Registration Number and Expiry Date etc.
•
The Card is set with default PIN that is generally initialized with “0000”. Finally, the user card is sent to the Customer in a welcome kit. The Card Holder through a secured four-digit personal identification number authorizes the transaction on the fleet Card, i.e. PIN.
FLEET CARD BEFORE AND AFTER PHYSICALLY EMBOSSED
Fleet card before card is embossed or engraved.
Fleet card after card is embossed or engraved.
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Following Flow Chart will make the process of Card personalization more clear:
Card Personalization
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O S R E P D R A C
T S O H E R T N E C
HOST RECEIVES DESPATCH DETAILS
PERSONALIZATION DETAILS SENT TO CARD PERSONALIZATION CENTRE
PERSONALIZES CARD
GENERATES WELCOME LETTERS
DISPATCHES PACKAGE TO CUSTOMER
SENDS DISPATCH DETAILS TO HOST
3.2. D. USER PIN CHANGE The XTRAPOWER Fleet Card is sent to the customer in a dormant condition. This is done essentially to protect the card member against any misuse of his/her fleet card(s) before he/she actually receives them. It is mandatory to change the default User PIN (Personal Identification Number) before the first transaction takes place. However, subsequently the PIN (Personal Identification Number) can be changed at any time by the Card Holder. To activate the XTRAPOWER card, the Card Holder needs to move to the nearby-designated RO (Retail Outlet) of IOCL. The Fleet Cards are activated by changing the default PIN on the Card Terminal at any Retail Outlet of IOCL. Thus, following steps are followed to change the default user PIN:
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•
At first the card has to be inserted in the POST (Point of Sales Terminal i.e. Retail Outlets of IOCL). If the card is in dormant condition i.e. not used by the customer for more than 3 months or any period will be defined.
•
Then an online connection will be made with HOST(Central Server located at the Data Centre for receiving, storing, processing and sending data for the Fleet Card Program) to verify the Card for hot listing etc. Hot listing is the process where the card is marked as hot listed so that no further transaction on that particular card will be entertained (A card can be hot listed if it is reported to be lost, damaged or stolen).
•
If card is found to be “Hot Listed”, then no further transaction will take place on that particular card.
•
If the card is validated by the POST, then the menu is displayed where the old PIN is changed for the new one. New PIN must be different from the Old/defaulted PIN.
3.2. E. RELOAD Once the Card is activated, the customer loads money on the card. There are two kinds of Fleet Cards, i.e., Prepaid Card and Credit Card PREPAID CARD: Under the Prepaid Card System, the Card Member has to first reload the card with the
required amount and then they can use the card for the purchase of Fuel/lubes from the ROs (retail Outlets) of IOCL. Firstly, the Card Members/Card Holders pay at the designated ROs to load and reload money value on the card. Here there are two types of customers’ viz. Generic and normal. Generic customers include Vodafone, Bharti Airtel, Reliance India Mobile etc. Thereafter they can purchase lubes/fuels against the card balance. CREDIT CARD: It is a kind of co-branded card offered to the customers by IOCL with present credit
partner Sundaram Finance Ltd. The later extends credit to card members for purchase of fuel/lubes through Fleet Card. The credit partner, Sundaram Finance Limited (SFL), has to send cheques to Finance
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Department of the Head Office of IOCL, within two working days of sale of Fuel/Lubes through credit cards. Thus in case of credit variant, based on the card limit as approved and sanctioned by the credit partner, each of the card of the fleet owner will be given daily limit. Once the amount within the limit is loaded in the card, customers can easily procure fuel/lubes from designated ROs of Indian oil. The daily (Credit) limit on the card is automatically gets reset at midnight (00:00 hrs). The credit variant of the card
again
provides
two
options
to
the
Fleet
Owners
In case of interest bearing credit, the Card Member has to pay the finance charges as decided by the credit partner for the already used credit. In case of interest free credit, the Card Member does not have to pay any interest for card utilization during a specific period. The Card Members are given no reward points on the card usage under interest free credit option whereas rewards points would be awarded under the interest bearing credit option of the credit variant on the purchase of Fuel/lubes. Thus for the prepaid variant of the Fleet Card , the first transaction will be reload transaction whereas for the credit variant the transaction limit, daily limit shall come pre-initialized on to the card, hence reload is not required. A Card Holder can use his card as long as the card has money value on it. Once the card is activated, customer can easily control his/her fuel/lubes expenses better through the different limits prescribed by the IOC for each of the fleet card. •
TRANSACTION LIMIT: It sets the maximum value of a sale transaction on a fleet card (default
value Rs12000). This limit ensures that each individual purchase on the card must not exceed the prearranged limit.
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•
DAILY LIMIT: It sets the maximum value of a sale transaction that can be done through the
card in a day (default value Rs. 24000). This limit has been provided to evade the misuse of the Card. •
CASH PURSE LIMIT: It sets the maximum value of a sale transaction amount that can be loaded
or can be held in the card at any point of time. (Maximum value Rs. 50000). •
MONTHLY LIMIT: Its sets the maximum limit to the Fleet card during the month. The sales
transaction cannot exceed Rs. 70,000 during a month in a single Fleet Card. It is mandatory to specify the above-mentioned card limits in the application forms or else the application form will be treated as incomplete. The limits on the card can however be changed subsequently by giving a written request to the Fleet Marketing Office Now the Reloading can take place in either of the two ways: •
Offline reload, also known as Manual Reload.
•
Online Reload, also known as CCMS (Central Cash Management System) Reload.
OFFLINE/MANUAL RELOAD To load a Prepaid Card, Card Member/Card Holder has to pay the desired amount to be loaded on the card at any designated Retail Outlet (ROs) of IndianOil and present the card for loading the money value on to the card. The money value so loaded on the fleet card shall be treated as payment in advance for future sales transaction of fuels/lubes at designated ROs. Hence following steps are followed to reload XTRAPOWER fleet card manually:
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•
First of all the User Fleet Card is inserted in the POST (Point of Sales Terminal i.e. Retail Outlets of IOCL) and amount is paid to the RO by the Card Holder/Card Member.
•
If the card has not been used for 3 months, it is verified with the HOST (Central Server located at the Data Centre for receiving, storing, processing and sending data for the Fleet Card Program) for hot listing etc. if the system responds positively, then the card is marked as “Hot listed” and no further transaction will be allowed. (A card can be hot listed if it is reported to be lost, damaged or stolen).
•
If POST validates the Card, then the “Manual Reload” option is selected from the “Menu Option” and the amount is loaded.
•
System then prompts user PIN (Personal Identification Number). POST (Point of Sales Terminal i.e. Retail Outlets of IOCL) will ask for SAM (Merchant/Retail Outlet) PIN. Merchant/Retail Outlet enters the PIN in case, if wrong, then it is blocked. Nevertheless, if the PIN entered right then the user card is uploaded with the requested amount.
•
The POST prints the receipt and hands it over to customer.
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MANUAL RELOAD(OFF-LINE) CUSTOMER
POST
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MERCHANT
CASH PAID TO RO BY CARDHOLDER
NO
HAS MAX SETTLEMENT TIME EXCEEDED?
HAS MAX TRANSACTION EXCEEDED?
YES NO
YES CUSTOMER CARD IS REJECTED YES
YES
NO
TRIES ON OTHER POST
CHOOSE RELOAD OPTION
DISPLAYS MENU
PROMPTS FOR USER PIN “USER PIN” CORRECT?
ENTERS”USER PIN”
YES
RELOAD NO AMT ENTERED
COLLECTS RECEIPT & CARD
CAN’T RELOAD ON THIS POST
DISPLAYS “LIMIT EXCEEDED” OPTION
CARD HOT LISTED OR EXPIRED?
INSERT USER CARD IN THE POST
“INCORRECT PIN” DISPLAYED
IF PIN ENTER 3 TIMES WRONG,PIN IS BLOCKED CREDIT USER A/C & PRINT RECEIPT FOR TRANSACTION
In case if the Fleet Card contains a predefined limit then in that case the cash reloading will be done online. This is being done primarily to capture the high value transactions of the system to be online and
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faster settlement with the HOST (Central Server located at the Data Centre for receiving, storing, processing and sending data for the Fleet Card Program i.e. Axalto, the Service Provider). Hence the card member can also use CCMS reload facility for reloading of card. For CCMS reload, the card member will first have to deposit a lump sum amount at a designated RO for recharge of his CCMS account. Now the money available in the account can be used to reload the Fleet Card(s) from any designated ROs of IOCL in the country. This payment for CCMS recharge can be made in cash (maximum Rs 50,000/- at any point of time) at designated ROs of IndianOil.
STEPS INVOLVED IN ONLINE RELOAD THROUGH CCMS RECHARGE: •
Once the Card Holder goes to the Merchant/Retail Outlet to reload money online on his user card from its card member’s central kitty on the HOST, POST (Point of Sales Terminal i.e. Retail Outlets of IOCL) checks if the user card ID is in the “Hot List”. If the System responds positively, then the card will be marked, as hot listed and no further transaction will take place. (A card can be hot listed if it is reported to be lost, damaged or stolen).
•
If the POST validates Card, “Online Reload Option” is displayed on the “Menu”, which is to be selected.
•
After then the system will prompt for the USER CARD PIN. In case of wrong entry of PIN, user can re-enter up to 3 times, if failed, card PIN is blocked.
•
In case the entry of User PIN is successful, the POST prompts for the Merchant (SAM) PIN.
•
Once the Merchant enters the PIN, in case of wrong PIN (3 times), SAM PIN is blocked.
•
If the PIN is valid, amount required is asked to be loaded which is decided on the basis of the cash purse limit of the card member.
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•
If reload amount exceeds the cash limit, then the reload will be rejected but if it does not then the POST goes online and sends the reload amount to the HOST.
•
The HOST will check whether that much amount is there in the central kitty of the card member. If it is available then the reload amt is debited to the CCMS a/c of the card member. The reload amt is then loaded on to the User Card.
•
During Batch Settlement, the transaction is sent to the HOST along with other Transaction.
ONLINE RELOAD(CCMS) CUSTOMER USER CARD PRESENTED FOR RELOAD
POST INSERT USER CARD IN THE POST
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MERCHANT
“ERROR MESSAGE” ILURE REFUSE RELOAD
VERIFY CARD, CHECK EOD AT POST
FA
SU CCESS
DISPLAYS MENU, ENTER USER PIN
YES
“USER PIN” CORRECT?
NO
NO PROMPTS FOR SAM PIN
IF PIN ENTER 3 TIMES WRONG,PIN IS BLOCKED
RELOAD AMT ENTERED&C ASH LIMIT CHECKED RELOAD REJECTED. REMOVE CARD
YYE
POST CONNECTS TO HOST TO CHECK AVAILABILITY OF AMT IN CARD MEMBER’S KITTY
NO YES YES
PRINT RECEIPT FOR RELOAD
POST LOADS THE AMT TO USER CARD
REDUCE RELOAD AMT FROM CARD MEMBER’S CENTRALKITTY
NO CARD TO BE REMOVED
POST REFUSES THE RELOAD
In offline Reload, the Card Holder pays the requisite amount to the Merchant/Retail outlet after inserting the card in the POST (Point of Sales Terminal i.e. Retail Outlets of IOCL). In case the card is dormant or hot listed, no further transaction on that card will be allowed. Nevertheless, if the POST validates the card, then the required recharge is to be done. In online reload, the Card Members have to have an account with HDFC bank. Here the prepaid variant of the fleet card reloads online from the balance available in the bank account of the Card Member at HDFC Bank. Again the card also has a pre-defined cash purse limit. Thus a card can perform CCMS
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(Central Cash Management System) recharge/reload for any amount within the cash purse limit. Once the card is reloaded, all further sales transaction can take place offline. CCMS recharge can also be done through Location/Retail Outlet, for instance, if the Transport Vendor wants to transfer partial amount of his dues to his Fleet card account.
3.2. H. SALE Once the Card Member’s Fleet Card reloaded, Sales Transaction takes place. Sale is the process where a merchant/Retail Outlet sells fuel/lubes to fleet cardholders. Sale transaction will not take place unless and until the card holds sufficient amount. Each User Fleet Card has a predefined transaction limit as well as daily limit on the card. The Card Holder can only be able to access the card if it is within the daily limit of the card. Once a sales transaction takes place, that amount is deducted from the daily limit. Thus, a Card Holder cannot perform any sales transaction on the card beyond daily limit and transaction limit of the Fleet Card. Whereas in case of credit variant of the Fleet Card, Sales Transaction details are transferred to the Credit Partners of IOCL on a daily basis that in turn will be responsible for maintaining the credit limits.
Sales at RO are done through:
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STEPS INVOLVED IN THE PROCESS OF SALES: •
At first the User Card has to be inserted in the POST (Point of Sales Terminal i.e. Retail Outlets of IOCL).
•
POST checks if it has reached the End of Day i.e. If the batch has reached the maximum number of Transactions or settlement time has exceeded.
•
If EOD has reached, POST cannot transact unless batch is settled.
•
If the card has not been used for 3 months it is verified with the HOST(Central Server located at the Data Centre for receiving, storing, processing and sending data for the Fleet Card Program) for hot listing etc. if yes then the card is marked as “Hot listed” and no further transaction will be allowed.
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•
If POST validates the Card, “Sales Option” is selected from the “Menu Option” and the Sales amount is loaded as per.
•
In case the amount loaded is more than the transaction limit, daily limit or current available balance in the card, an error message will be displayed and the Sales Transaction is rejected.
•
In case the Sales amount is within the above-mentioned limits, the POST prompts for User PIN.
•
Once the Card Holder enters the PIN, then in case of wrong PIN (3 times), User PIN is blocked.
•
If user PIN is valid the POST deducts the Sales Amount from the User Card.
•
POST prints the receipt and hands it over to customer
•
During Batch Settlement, the transaction is sent to the HOST along with other Sales Transactions.
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Sale 3.2. I. VOID
CARD HOLDER
POST HAS EOD BEEN REACHED?
INSERTS USER CARD IN THE POST
No
No IS USER CARD DORMAT?
Yes
Yes
DISPLAY ‘LIMIT EXCEEDED’ MESSAGE
TRIES ON ANOTHER POST
USER CARD IS REJECTED SELECT ‘SALE’ OPTION FROM THE MENU
POST GOES ONLINE TO CHECK IF USER CARD IS HOTLISTED
IS CARD HOTLISTED OR Yes EXPIRED?
Yes
DISPLAYS MENU
DOES USER CARD HAS THIS MUCH AMOUNT?
ENTERS THE SALES AMOUNT
CHOOSES THE PRODUCT FROM THE SUB-MENU
No
No
USER PIN IS Yes BLOCKED
CARD HOLDER ENTERS THE PIN
No
Yes
PROMPTS FOR USER PIN
DISPLAYS ‘AMOUNT UNAVAILABLE’ MESSAGE
IS THE PIN CORRECT? IF WRONG PIN IS ENTERED 3 TIMES
Yes Yes
DISPLAYS ‘INVALID PIN’ MESSAGE
DEBITS USER CARD BY SALE AMOUNT
No PRINTS RECEIPT FOR THE TRANSACTION
COLLECTS RECEIPT AND THE USER CARD
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No
Occasions might arise where the Merchant/Retail Outlet can perform wrong transaction entry. For instance, a transaction of 5000/- has been wrongly entered by the merchant as 15000/-. Here to reconcile the error the merchant follows void process by which any transaction carried out on the POST (Point of Sales Terminal i.e. Retail Outlets of IOCL) can be easily reversed. In case of such Sales transaction, “Void Option” is to be operated where all transactions relevant to the Primary transaction has to be reversed. For example, if any loyalty points have been awarded then that also has to be reversed. This method can only be processed until and unless the batch settlement is not done. It is so because once the batch is settled there is no record of Transaction left on the POST. The process of Void is as under: •
At first the User Card is inserted in the POST which then performs all required User Card verification.
•
From the “Menu” displayed, “Void Option” is to be selected.
•
POST then asks for the ROC (Receipt of Count) number of the transaction, which is to be made void.
•
After entering the ROC number, POST prompts for the transaction amount for confirmation.
•
If amount matches, POST asks for the User PIN & SAM (Merchant/Retail Outlet) PIN which is then verified.
•
POST reverse the transaction on the User Card and the receipt of the same is printed by the POST.
Even if the batch is locked at the POST due to any of the EOD (End of the Day) conditions like reaching of maximum number of transaction or settlement time exceeded, “Void Option” can be performed. A maximum of five such Transactions can be performed.
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3.2. A. END-OF-DAY/BATCH SETTLEMENT At the end of every day, every Retail Outlet of IOCL has to get Batch settlement of its POST (Point of Sales Terminal i.e. Retail Outlets of IOCL) with the HOST. The EOD are the state of affairs that gets the batch locked unless batch is settled with the HOST. Batch Settlement is the process wherein a POST connects to the HOST, downloads the latest “Hot List” etc, and uploads its transactions to the HOST. Under normal circumstances, the merchant/Retail Outlet can perform the Batch Settlement process at any time. But when EOD is reached, the Batch is locked and no further transactions can be performed except the void transactions, the merchant is forced to perform the Batch Settlement. EOD is reached under following circumstances: •
If the maximum number of transactions that a batch can hold during the day itself has been performed. Here the maximum number of transaction is 75.
•
If the POST is not settled for a pre-defined time period called Settlement time. This time period shall be configured for 24 hrs.
•
If any batch exceeds the total allowed sales/reload allowed on each batch of Rs.2,00,000.
•
If any repair or maintenance is about to take place, then it is mandatory to do the settlement before such repair.
During Batch Settlement following activities takes place: •
Latest Hot list files are downloaded from the HOST.
•
Latest de-hot list files are also downloaded from the HOST.
•
Latest transaction schemes, relevant to the POST, are also downloaded.
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•
Finally all transactions from the POST are transferred to the HOST.
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EOD/Batch Settlement POST
HOST
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POST dials a number to connect to the HOST POST sends the latest Change Number on it
POST sends acknowledgement
POST sends the version of parameter files
The HOST is connected to POST
The call is routed to the HOST
HOST checks is the hot list latest?
NO
Hot List is not downloaded
HOST sends latest hotlist entries to POST
Is the parameter file latest?
NO
HOST sends latest parameter file
POST sends acknowledgement
POST sends Batch ID
YES
YES
Parameter File is not downloaded
Is Batch pending?
NO HOST opens a new batch
YES HOST sends no. of Transactions received
HOST sends acknowledgement &closes batch POST sends remaining txns to the HOST
NO POST sends reconciliation request
Is Batch total correct?
HOST sends error message
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YES
HOST approves. Batch accepted
3.2. J. HOT LISTING In case if the Card Holder/Card Member loses or gets the card damaged or stolen, then the card is “Hot Listed” to prevent any misuse. Hot listing is the process where a card (User Card or SAM i.e. Merchant/Retail Outlet Card) is hot listed so that no further transactions can be done on it. Hot listing can be done in either of the two ways:
1.PERMANENT HOT LISTING In case if the card is permanently lost or damaged then it is apt for permanent hot listing. In this case the card is blocked permanently and CANNOT be de-hot listed/reactivated. In this kind of hot listing the hotlist flag is set as “permanent” and all the keys on the card are blocked. Both SAM Card and the User Card can be permanently hot listed.
2.TEMPORARY HOT LISTING/DEACTIVATION In case if the card is misplaced or lost then it is appropriate for temporary hot listing, this is so because there is always a possibility of getting back the card again and needs to be de-hot listed. Only User Card can be hot listed and not the SAM (Merchant/Retail Outlet) card. Hot listing of User Card takes place in the under mentioned way: •
Card member needs to immediately call up the Customer Helpline and request them for hot listing the card.
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•
Once the call is made, the Card Member’s identity is validated based on two fields i.e. secret questions and address or date of birth, filled up in the application form during enrollment.
•
•
•
•
The Service Provider, Axalto, automatically will hot list the Card ID in the HOST. At the time of Batch Settlement, the latest hot list is downloaded from the HOST. Thereafter the latest de-hot list is downloaded by the POST. Once the download is complete, transactions all through the day are transferred from the POST to the HOST.
POST generally keeps track of the Card hot listed during last 90 days. Whenever the Card Holder visits the merchant to use a card that is hot listed, hot list flag will be marked on the Card. During the Batch Settlement, POST will send this intimation to the HOST that the card has been hot listed. Subsequently this Card ID will be detached from the hot list on other POST whenever they perform Batch Settlement.
Thus when a card holder comes and uses the card when the card is hot listed, following cases may arise:
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