Chapter 16: Banking & Payment Infrastructure

The operational backbone of banks and payment providers: system of record, accounting, payment rails, processing, reconciliation, consistency, fraud, and tokenization.

• Core Banking Systems: Account Structures, General Ledger, Core Banking Vendors (Temenos, Mambu, Thought Machine)
• Double-Entry Bookkeeping: Ledger Design, Journal Entries, Chart of Accounts, Multi-Currency Ledgers
• Payment Rails & Messaging Standards: ACH, SWIFT/SEPA, Wire Transfers, Card Networks (Visa/Mastercard), Real-Time Payments (RTP, FedNow), and ISO 20022 Protocol Integration
• Payment Processing Architecture: Authorization/Capture/Settlement Flow, Payment Orchestration, Idempotency Keys & Idempotent Request Handling
• Reconciliation Systems: Statement Matching, Break Detection, Automated Clearing, Ledger-to-Bank Reconciliation
• Ledger Consistency: Event-Sourced Ledgers, Immutable Audit Trails, Double-Spend Prevention, Eventual Consistency in Distributed Ledgers
• Fraud Detection: Rule Engines, Velocity Checks, Device Fingerprinting, ML-Based Anomaly Scoring
• Card Tokenization: PAN Tokenization (Network Tokens - Visa/MC Token Service), EMV Tokenization, Format-Preserving Encryption, Token Vaults, Device-Bound Tokens (Apple Pay/Google Pay), Detokenization Flow & PCI Scope Reduction
• Chapter 16 References