EMV Coming to Your Wallet

Coming to Your Wallet in 2015 EMV is moving us from magnetic stripe cards to more intelligent devices such as integrated circuit or "chip cards" that greatly reduce counterfeiting and fraud. MASTERCARD EUROPAY VISA WHATT IS EMV? Typical EMV smart cards have the same dimensions of a standard TYPES OF EMV CARDS credit card. 86mm Similar except for a Dual-interface set of contacts often Acceptance will be required at US businesses by October of 2015 in gold or silver 54mm ------------ Contact Contactless When inserted into a reader, the contacts provide power to a microprocessor located in the smart eard. EMV is widely used in Canada, Europe and Asia and is being adopted as the standard for credit cards worldwide. The microprocessor contains: Cryptographic keys - Algorithms for providing digital signatures and other encryption - Basic cardholder account information that is used in some countries for offline transactions 45% • The US is behind the rest of the world on EMV primarily because the cost to 're-terminalize' the merchants will be enormous, combined There are over 1.5 billion of total cards in circulation with a lack of demand from the consumer. EMV enabled cards worldwide 76% and more than 21 million EMV enabled POS terminals of payment terminals MER CHANTS MU ST CO MPLY VISA MasterCard Visa has set deadlines on retailers to accept EMV-enabled cards over the next four years MasterCard has given US ATM owners around three years to upgrade their machines OR TAKE ON LIABILITY FOR FRAUD! Liability shift that will occur in October 2016 REDU CING CARD FRAUD Criminals have a much harder time picking up useful payment data from EMV transactions Whereas cards with magnetic stripes contain "statie" data that never changes Information is encoded uniquely every time Thieves can lift that information and create a fake card Mercator Advisory Group estimates that credit and debit card fraud costs the card issuers over The US has been the No. 1 $2.4 billion country for card fraud in the last 5 years due to lack of chip payments annually BEST PRACTICES FOR B USINE SSES /PINS AND SIGNATURES/ Pin provides greater fraud protection compared to signature verification **** **** CHIP AND PIN EMV-enabled cards do not Signatures are something the Merchant 'has' and can use for verification in the future, while a PIN provides verification at the sale require a PIN or signature by technical specification the global standard for most countries that have adopted EMV Issuing banks may specify which cardholder verification to use /ONLINE AND OFFLINE TRANSACTIONS/ It is possible to authorize a chip-based transaction either online or offline Online Offline Offline transaction information is transmitted from the terminal directly to the chip card for authorization Online transaction information is sent to the card issuer for approval Allows for an additional Consistent with global standards and increasing speed of transaction layer of security Most fraud mitigation tools function online, in real-time Ensures compatibility with international issuers' payment devices Online authorization simplifies Allows transaction authorization - chip production functionality in the absence of online connectivity - encryption key management - merchant infrastructure Sources: http://www.emvco.com http://csrc.nist.gov/groups/SNS/smartcard/index.html http://www.frbatlanta.org/documents/rprf/rprf_pubs/120111_wp.pdf http://www.bankrate.com/finance/credit-cards/emv-credit-cards-2.aspx http://www.firstdata.com/downloads/thought-leadership/2756-EMV-Best-Practices-WP.pdf http://www.forbes.com/sites/thesba/2013/03/07/emv-chip-technology-secure-electronic-payments-2 http://newsroom.mastercard.com/press-releases/mastercard-extends-u-s-emv-migration-roadmap-to-atm-channel Merchant Warehouse DEVELOPED BY NOWSOURCING