I define a turnstile for the purposes of this blog as a
transition from one data structure to another while a payment instruction or its
notification is in-flight. There are several classes of turnstiles within this
general definition. There are turnstiles that add or subtract data from
different versions of the same protocol (I call this a static turnstile) and
there are turnstiles that change the data from one protocol to another (I call
this a dynamic turnstile). Diagram 14
displays payment flow through the different types of turnstiles and a valve
(see previous blog).
Diagram 14 Turnstiles and a Valve within the Control Module of A Payment Hub
The turnstiles create different types of backpressure based
on the nature of their function. If data is static for all flow then
backpressure is minimal. If data is dynamic (i.e. unique within a set of values
or unique for each transaction) then backpressure increases in strength. I define unique for the purposes of this blog
as an element of data associated with a transaction that remains unduplicated
by the control process for the entire period under measure.
The inefficiency of payment hubs is a tangible measure
directly related to backpressure. Increasing the use of turnstiles and valves
correspondingly increases backpressure, thereby slowing down transaction flow,
thereby increasing risk.
Surprisingly the payment industry wants to increase its use
of turnstiles and valves thereby increasing transaction risk. EMV, for example
in most cases will require the placement of at least two turnstiles (change of
data originating from token, adding data to token data requiring uniqueness,
and changing data to an application specific protocol) for each point of sale. Once again the industry seems to believe that data
required for the validation of the initiating entity coupled with data required
for payment must use the same pathways while requiring completely different
logical flows. It is remarkable that crazed greed blinds the industry to
its principle function; safe transfer of money.
Next Blog: Smoke
and Mirrors or something different
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