Introduction to EMV BEYOND PAYMENT

Transcription

1 Introduction to EMV TAKING YOU TAKING YOU BEYOND PAYMENT

2 Why EMV? Security Magstripe cards are easily reproduced EMV can verify card and user authenticity Chip & PIN Interoperability The world has moved to EMV US last major market in world to adopt Convenience and value EMV contactless and NFC Mobile wallets. -2- Remember that the Visa EMV program for the US is linked to not only EMV, but to NFC enablement for payment devices.

3 What is EMV? Standards developed by Europay, MasterCard and Visa in 1993 in 1993 Currently owned by Visa, MasterCard, JCB and Amex (EMVCo) First designed for card-present chip-based smart cards EMV provides comprehensive protection against: Counterfeit and skimming - through the use of cryptography Lost or stolen - through the use of offline and/or online PIN

4 How is EMV Managed? EMVCo manages and maintains the EMV Specifications to ensure global interoperability EMVCo has developed an approval process for terminal compliance testing: Level 1 Terminal hardware components Level 2 Software (EMV Commands) Level 3 Payment applications

5 What are the Benefits of EMV? Fewer chargebacks because EMV proves a card was present Improved dispute resolution Overall lowering of fraud costs Counterfeiting and cloning cards is far more difficult Improved experience for traveling consumers who can now use the same card in the US and 80 other countries EMV can be used to validate online transactions R d i f PCI l lid i i f Reduction of PCI annual validation requirement for qualified merchants (VISA s TIP program)

6 Fraud Trends In Canada

7 Fraud Trends in US

8 How Does EMV Work? Chips embedded in cards contain encrypted data, which is accessed by the reader in the terminal The terminal sends a code, or cryptogram to the processor during the transaction, validating the card and the cardholder EMV cards can be either contact, requiring insertion into, q g the terminals, or contactless where the card is held near the terminal, or hybrid.

9 Key Dates and Information Oct 1, 2012: TIP program expansion (Audit Relief) April 1, 2013: Processors must support chip transactions Oct 1, 2015: Liability shift to acquirers Oct. 1, 2012: Audit relief program April 1, 2013: Working with processors for EMV readiness April 19, 2013: ATMs must accept EMV cards 2013: EMV mandate includes Discover network, Pulse and Diner s Club April 2013: Processors must support EMV chip-based April 2013: Processors must support EMV chip based contact, contactless and mobile transactions Oct 2013: Merchant relief from PCI DSS where EMV enabled Oct 2015: Liability shift away from EMV-enabled parties

10 How Does EMV align with Mobile? An EMV chip can be on a contactless card where the chip is tapped or held near the terminal -OR - A chip can be inside your smart phone and the phone is waived near the terminal Mobile wallets (ewallets) are rapidly growing in number, which multiplies the opportunity for incremental sales and marketing opportunities.

11 Contactless Payments NFC (Near Field Communication) is the specific technology used. It is commonly known as contactless A very small chip is embedded in a card containing cardholder data similar to that of a smart card. The same type of chip can be built into a smartphone or other device making the device itself a payment mechanism Acceptance of these cards and devices is expected to increase as the migration to EMV picks up steam By 2014 Google estimates 50% of the smartphones in the world will have contactless chips built in Mobile wallets (ewallets) are rapidly growing in number, which multiplies li the opportunity for new loyalty, lt couponing and other marketing applications

12 By % of US phones are expected to be smart phones.

13 North American Mobile payments could rise to 260 billion by 2015

14 Key Benefits for Small Businesses Comprehensive mobile payment and offer redemption functionality with no new hardware only solution that enables small merchants to give customers mobile payment and offer management and redemption functionality using existing countertop terminals that can print 2D codes, with option to upgrade to low cost consumer facing LCD terminal. Increased foot traffic because the cloud wallet is always launched in a region in conjunction with prominent local and national financial institutions, small merchants know that t their customers will be aware of and use the solution. Integrated t loyalty lt allows small merchants to see anonymous consumer usage reports, and then access upgraded functionality that makes the mobile wallet a mobile enabled loyalty program enabling customers to opt-in to receive incentives based on number of visits or dollars spent in store

15 Advertising, Loyalty and Offer Examples Integrated offer redemption Aggregate g other s offers Self-service offer management 2-3 impression available as part of digital receipt Design/layout completely l flexible Managed in-house or via ad server/network Tender steering via inclusion (exclusion) in wallet Steering also enabled via rules driven ordering of wallet

16 The Objective: To Transform the Point of Payment From the last step in this transaction Discover and Attract - Locate and navigate - Incentives to enter to the first step in the next one Loyalty & Receipts Check-in and Engage - Earn & activate rewards - Announce presence - Leverage mobile receipts - Present real-time offers Mobile Engagement Cycle Targeted Ads and Offers - Leverage personalized data - Create return trip incentives Assisted and Self-Service - In-store cross-channel sales - Product info and incentives Check-out and Payment - Drive favorable payment types - Capture critical data, real-time

17 Pay at the Table!! Check, please. I would like to pay by MOBILE. Waiter rings up bill at POS and selects MOBILE tender type. Waiter returns with slip with token. Guest scans token, enters tip, confirms and waits for approval before leaving. Waiter returns to POS which has been updated with tip amount and closes transaction sending confirm to guest.

18 What changes for the Industry? Merchants (large and small) will have to both buy and enable new EMV terminals and PIN pads Issuers will have to reissue their card base with EMV enabled cards ATMs will have to be upgraded with new EMV hardware and software Everyone will have to train and educate their internal staff and external customers on the changes that EMV will bring