Geo-tagging is a common security method used by card networks as a potential fraud attribute. The location may be simply evaluating the IP address of the buyer in an online transaction, or more accurate data may be collected from GPS, WiFi, or other sensors. Over time, as with Google Maps, enough people have visited a site to enable triangulation of the merchant’s physical location, if not self-reported to assure top search rankings.
The Reserve Bank of India’s (RBI) approach for geo-tagging requires payment networks and others in the payment ecosystem to document and submit geo-tagging information to the RBI’s Centralized Information Management System (CIMS). This will be a huge data repository that will change significantly on a daily basis and so one wonders how effectively the government can correlate so much diverse and rapidly changing data and how it will distribute that knowledge to those that need it.
“Under the framework, Banks/Non-bank PSOs shall capture and maintain geographical coordinates for all payment touch points. Further, geo-tagging in respect to PoS terminals and Paper-based/Soft QR Codes should be submitted to RBI.
PoS terminals include – mobile PoS, soft PoS, tablet PoS, desktop PoS, self-service kiosk PoS, android-based PoS terminals, non-android-based PoS terminals with GPRS SIM Card-embedded, non-android-based PoS terminals with PSTN Line Connectivity, etc. Meanwhile, QR codes consist of Bharat QR, UPI QR, etc.
There are broad categories of physical infrastructure for digital payment transactions carried out by customers using payment touch points. Firstly, banking infrastructure comprises bank branches, offices, extension counters, Automated Teller Machines (ATMs) / Cash Deposit Machines (CDMs), Cash Recycler Machines (CRMs), micro-ATMs used by Business Correspondents (BCs), etc. Secondly, payment acceptance infrastructure such as Points of Sale (PoS) terminals, Quick Response (QR) codes deployed by banks/non-bank Payment System Operators (PSOs), etc.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
