scheme and emv compliance changes for unattended cardholder activated terminals

Date Here

SCHEME AND EMV COMPLIANCE CHANGES FOR

Unattended Cardholder Activated Terminals

AUSTRALIA

MARCH 2013

SCHEME AND EMV COMPLIANCE CHANGES

EMV is defined by EMVCo as, “a global standard for credit and debit

payment cards based on chip card technology”.

The key element of EMV chip card technology involves including dynamic

digital data in every transaction. This makes these types of transactions

extremely secure and reduces the risk of fraud over traditional magnetic

stripe payment cards.

The EMV standards and associated compliance processes are managed

by EMVCo

WHAT IS EMV?

http://www.emvco.com/

http://www.emvco.com/


The EMV Specifications were developed to:

Improve payment security

• This is achieved by Offline Data Authentication/Offline PIN Verification between

card and terminal and online Card Authentication between card and Issuer

Achieve globally interoperability

• Realised through EMVCo type-approved terminals, readers and ATMs

Create a payment infrastructure that would support emerging

technologies

• For example, standardising technology infrastructure for contactless payment and

contactless mobile payment.

WHY EMV?


Magnetic stripe transactions, exchange only the card's track 2 data

containing the card number and validity dates, where as every chip card

transaction contain multiple pieces of information exchanged between

the card, the terminal and the acquiring bank's host

This requires the terminal to perform many stages of complex processing,

including cryptographic authentication, to successfully complete a

transaction

EMV replaces the card-not-present (CNP) payment processing at

unattended locations providing security and reduces the risk of fraud

EMV VS. MAGNETIC STRIPE TRANSACTIONS?


EMV payment terminal approval consists of three levels:

EMV Level 1 covers the electrical and physical interfaces, and the

transmission of data, between the terminal and the card. All chip card

reading terminals must pass the EMV Level 1 test before use with EMV

cards

EMV Level 2 covers the set of functions that provide all the necessary

processing logic and data that is required to select and process a card

application in order to perform an EMV transaction

EMV Level 3 covers the “end to end” merchant acquirer and scheme

approval (i.e acquiring banks) and the card schemes (Visa, MasterCard)

WHAT ARE THE LEVELS OF COMPLIANCE?


These EMV specifications require all merchant unattended terminals to be

EMV complaint and be able to process Chip EMV transactions in the

correct unattended format to their Bank by the scheme deadlines

• Replacing card-not-present (CNP) payment processing at unattended locations

Unattended payment terminals – are also known as;

• Unattended Cardholder Activated Terminals’ (UCATs)

• Cardholder Activated Terminals’ (CATs)

• Unattended Payment Terminal (UPT)

• Unattended Acceptance Terminal (UAT)

WHAT’S THE IMPACT ON EXISTING INFRASTRUCTURE


AUSTRALIAN EMV COMPLIANCE DATES

2012 2013 2014 2015

MasterCard requires

that all new installed

terminals need to be

EMV capable from the

1st April 2012

MasterCard requires

that all terminals need

to be EMV capable by

1st April 2013

MasterCard requires that

all terminals need to be

contactless EMV capable

by 1st April 2014

MasterCard … on going

Visa requires that all

new installed


EMV capable from

the 1st April 2012

MasterCard shifts

liability to the merchant

for non EMV compliant

transactions



contactless EMV capable

by 1st April 2014


terminals need to be EMV

capable by 1st January

2014

Visa … on going


EMV compliance requires that, all credit card payment terminals,

also known as; (UCATs), (CATs), (UPT) AND (UAT) need to be upgraded to EMV

compliant hardware

For unattended payment terminals, this typically means that the existing magnetic

stripe card reader will need to be replaced by an EMV chip card capable

alternative

An upgrade to the EMV standard enables safer, smarter and more secure

transactions across cards, contactless, mobile, and remote payment channels. It

also enables merchants to offer consumers the next generation of digital payment

innovations

WHAT CHANGES ARE NEEDED?


EXAMPLE EMV COMPLAINT DEVICES BY DPS | PAYMENT EXPRESS

SCR200 DEVICE (OPTIONAL PIN AND CONTACTLESS MODULES)



SCR200VM DEVICE FOR VENDING



INGENICO I9530 AND I9550 CHIP AND PIN DEVICE


Both card schemes and acquiring banks will determine the consequences where transactions

continue to be processed over a non EMV complaint solution. MasterCard compliance mandates

all card readers for real time payments at merchant unattended terminals need to be upgraded

and EMV complaint by the 1st April 2013 (Australian deadline for processing via the EMV

format)

Failure to comply may result in

shift of liability to the merchant and

an increase in merchant service fees

financial penalties

See

http://www.mastercard.com.au/media-releases/03292011.html

DEVICES THAT ARE NOT EMV COMPLAINT





To understand how the compliance requirements and changes apply to you.

Contact your;

Equipment vendor

Acquiring bank

DPS | payment express

• provider of EMV compliant terminal devices and card processing gateway

FOR FURTHER INFORMATION CONTACT

CONTACT DPS | PAYMENT EXPRESS

For further information regarding

DPS | payment express services,

please contact;

Stuart McGregor Business Development Manager (Sydney, Australia)

[email protected]

Phone: +612 8268 7700

www.paymentexpress.com

mailto:[email protected]

mailto:[email protected]

http://www.paymentexpress.com/

scheme and emv compliance changes for unattended cardholder activated terminals

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