Understanding EMV Andrew Fletcher & Jay Forthman
Agenda A Brief History. What is EMV? What's the customer impact? EMV Timescales Elavon Class A Product Offerings Class B Development & Certification How Elavon can help
A Brief History.. EMV was initiated in 1994 by Europay, MasterCard and Visa Primary purpose was to define a single global standard chip based specification for credit and debit payment cards based on chip card technology. Original Specification was first published in 1996 EMVCo was actually founded in 1999 Members of EMVCo: Visa MasterCard Discover JCB AMEX UnionPay
What is EMV? The EMV Integrated Circuit Card specifications are a global Payment industry specification that describes the requirements for the interoperability between a chip based consumer payment application and merchant deployed terminal to accept payments It determines how a chip card and a terminal communicate securely in order to authenticate the card and customer
EMV Continued EMV is designed to significantly improve the security of a card payment by providing enabling features for reducing fraudulent payments that result from counterfeit and lost and stolen cards. Four main features that are defined in EMV Authentication of the chip card to protect against counterfeit cards Cardholder verification to protect against lost/stolen cards Digitally signing payment data for Transaction Integrity Transaction Risk Management by the issuer
Acceptance Forms Contact Chip is embedded in a card A contact card is inserted into a smart card reader The contact points on the chip make contact with the card reader Contactless The chip may be embedded in cards, key fobs, stickers, mobile phones, etc. A contactless chip requires close proximity to a reader ( tap and go ) Both the chip and the reader have an antenna and they use an RF (radio frequency) signal to communicate
EMV Authentication and Verification Authentication and Authorization Methods Online requires the transaction to be sent online for the issuer to authenticate the card and authorize the transaction Offline is done between the chip card and terminal Cardholder Verification Methods (CVMs): None (usually used for low value transactions) Offline PIN (entered and stored PIN are compared offline) Online PIN (PIN is validated online like PIN debit) Signature Verification (requires physical signature comparison)
How does EMV Work?
EMV Impact Change in the customer payment process Swipe & Sign or Swipe becomes Chip & Sign or Chip & Pin Impact the customer check-in process New acceptance process Impact all industries, not just lodging Introduction of new hardware to enable EMV Chip cards to be accepted
US EMV (Contact / Contactless) Timelines 2012 Technology Innovation Program (TIP) -PCI validation relief for merchants that adopt dual-interface terminals 2013 Acquirer Chip Processing Mandate -Requires acquirer processor to support 2015 Liability Shift -Debit and credit domestic and crossborder counterfeit & fraud shifts at all POS excluding AFDs Liability Shift is coming 1 st October 2015 Merchants will be liable for: Visa: Counterfeit transactions MasterCard & AMEX: Counterfeit and Lost or Stolen transactions
NORTH AMERICA (CLASS A) EMV Landscape EMV Readiness - Elavon NA Acquiring Platforms Description / Comments Channels Elavon Host EMV (Contact & Contactless) EMV Host certification & enablement to support payment network mandates. Visa, MC, AMEX, Discover, Interlink and Maestro. US and PR Elavon Front-end Specs E 4 Distribution and Support of E4 & ViaConex Certifications US and PR C Elavon ISO Distribution and Support of Elavon ISO Certifications (Mar 1st) US and PR T Elavon Products Ingenico Telium Terminal Line Beginning Q3 2014 US and PR VeriFone Evolution Terminal Beginning Q3 2014 US Ingenico Telium Terminal Line Expanding card acceptance (EMV Amex & Discover) and contactless Canada Virtual Merchant (Canada) Targeted Beginning Q1 2014 Canada T Virtual Merchant (US) Targeted Beginning Q4 2014 US T Fusebox -Elavon Acquiring Simplify (Canada) Targeted End of Q2 / Beginning Q3 2014 Canada T Simplify (US) Targeted Beginning Q4 2014 US T Oct-13 C Nov-13 Q1 2014 Q2 2014 Q3 2014 T T T Q4 2014 C = Completed T = Targeted Delivery v112013 Key Considerations: - Education & Training: Consumer & Customer "Acceptance" Changes - Pilot Locations. Payment Networks Need to Fund & Facilitate a National Campaign - Debit Issuance & Durbin - Customer POS Investment vs Liability Shift: Opportunity to Upgrade Outdated Technology & Add New Services
EMV Terminals: Ingenico Telium2 ict250 Countertop Dual Comm Internal PIN pad MSR EMV NFC iwl250g Portable - GPRS Internal PIN pad MSR EMV NFC 3G Technology ipp320 Customer Facing PIN pad ict220 or ict250 MSR EMV NFC ict220 Class A Support Countertop Dual Comm Internal PIN pad MSR EMV
EMV Terminals: VeriFone VX Evolution VX520 Countertop Dual Comm Internal PIN pad MSR EMV NFC VX820 Customer Facing PIN pad Vx520 MSR EMV NFC Contact Contactless
Class B Certification w/ Elavon VAR / Merchant needs to complete the Elavon Certification Request Form: identifies key components for completion of an EMV certification Elavon will provide test credentials and scripts Elavon will provide high level EMV regional support options based upon Card Scheme Certification requirements
Development & Certification Summary for Merchants & VARs Choose POS Manufacturer to assist w/pos integration for EMV Chip card processing Verify that POS Kernel is Level 1 and Level 2 EMVCo certified Choose software tools that can help with integration development and certification Work with manufacturer to integrate Kernel and product to the Elavon message formats/processing Schedule Certification with Elavon when POS integration development completed
Development & Certification Entire transaction flow is required for Certification PED, POS, Payment Switch/Gateway Certification required for each Card Scheme Expense VISA ADVT (includes Interlink) MasterCard MTIP (includes Maestro and PayPass) VISA CDET is for contactless/paywave American Express - AEIPS Discover DPAS MTIP - $2500 Fee for First Attempt. Each additional attempt $1000 ADVT - $2500 Fee for First Attempt. Each additional attempt $1000 Timing EMV can add an additional 60-90 for new integrations or Certifications
How can we limit EMV impact? Simplify is a PIN pad-based application Designed to process electronic payment transactions from a Point of Sale (POS) or Property Management System (PMS) in an integrated manner. Authorization requests for electronic payment transactions are sent from the POS/PMS through Simplify Removes need for direct communication from those applications as typical for integrated payment systems Simplifies PCI DSS compliance Isolates the POS/PMS from sensitive data while remaining compatible with existing applications. 17
Supported Customer Facing Terminals VeriFone MX Series 880, 870, 915 and 925 Operating System RFS-16, service pack 4 or newer Ingenico ICS 250 and IPP 320 The Telium 2 family is the same code across the platform, so we are will be able to support T2 devices 18
Summary EMV is coming.. EMV Liability shift as of the 1 st October 2015 Elavon can Help! 19