Scribd
Upload
68 views2 pages

EMV Frequently Asked Questions

EMV

Uploaded by

shanrimaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
68 views2 pages

EMV Frequently Asked Questions

EMV

Uploaded by

shanrimaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

EMV Frequently Asked Questions

What is EMV?
EMV is an abbreviation for Europay, Mastercard and Visa, the three organizations that developed the initial open-
standard set of specifications for smart card payments and acceptance devices. The EMV specifications were
developed to define a set of requirements to ensure interoperability between chip-based payment cards and
terminals. EMV chip cards contain embedded microprocessors that provide strong transaction security features and
other application capabilities not possible with traditional magnetic stripe cards. Today, EMVCo manages, maintains
and enhances the specifications. EMVCo is owned by American Express, Discover, JCB, MasterCard, UnionPay, and
Visa, and includes other organizations from the payments industry participating as technical and business
associates.

What are EMV liability shift dates?


EMV liability shifts are designed to reduce fraud by encouraging EMV migration. After the effective dates,
responsibility for counterfeit card fraud moves to the party using the least secure technology.

Do I need to switch from magnetic stripe cards to EMV chip cards?


While issuers are not mandated to migrate from magnetic stripe to chip cards, liability for certain types of card
fraud, including fraud resulting from counterfeit, lost, or stolen cards, away from the party that has the most secure
form of EMV technology, has created creating a sense of urgency for both issuers and merchants to adopt full EMV
compliance.

What are the benefits of EMV cards?


The biggest benefit of EMV is the reduction in card-present card fraud resulting from counterfeit, lost and stolen
cards. EMV also provides interoperability with the global payments infrastructure allowing EMV chipcard holders to
use their card on any EMV-compatible payment terminal. EMV technology also supports numerous enhanced card,
cardholder, and transaction verification methods.

EMV cards store payment information in a secure chip rather than on a magnetic stripe and the personalization of
EMV cards is done using issuer-specific keys. Unlike a magnetic stripe card, it is virtually impossible to create a
counterfeit EMV card that can be used to conduct an EMV payment transaction successfully.

Will the EMV chip replace the magnetic stripe on the card?
Probably, but for the foreseeable future the magnetic stripe format will be a component of both contact-only and
dual-interface cards.

Do I still need my other risk management tools if I move to EMV?


EMV is an enhancement to risk management programs, not a replacement. Also, it's important to acknowledge that
EMV adoption only reduces the potential for fraud during card present transactions and will not impact card not
present fraud, which is of concern due to the growing use of e-commerce.

EMV should be deployed as an integral component of a multilayered risk management program that includes a
progressive real-time, proactive and scalable fraud detection and prevention solution. Magnetic stripe transactions
will continue for years and the ability to monitor, score, alert and block both existing and an emerging new threats
to cardholder data and transactional security remains imperative.

Online or offline?

Copyright © 2017 CSF International, Inc. All Rights Reserved.


A cardholder PIN can be validated online by the issuer, or offline by the chip card. Also, a transaction may be
authorized online by the issuer, or offline by the chip card, based on rules preset by the issuer.

What are the applications that I may want on the chip?


In addition to making decisions about the manufacturing of the plastics, you must also make decisions about the
applications contained on the card’s chip. While most applications are related to financial payments, EMV compliant
cards can contain other applications, such as rewards, or loyalty. The issuer will need to determine which
applications it wants (or can) include on a chip after reviewing costs, limitations and mandates from card
associations, processors, switch networks, and personalization bureaus. The type and number of applications and
functionalities on a chip can also impact certification and deployment timelines.

Can EMV cards be instantly issued in-branch?


Yes. CSFi supports instant issuance hardware and software allowing EMV-compliant cards to be issued in-branch.

Will EMV cards eventually replace magnetic stripe cards?


Probably, but for the foreseeable future the magnetic stripe format and must be supported on both contact-only
and dual-interface cards.

What are the Minimum Chip Requirements Needed For our EMV rollout?
There are many functionalities and features available for smart card processing consideration, and you as the issuer,
are in the best position to answer this question.

All issuers planning to deploy an EMV solution should consult with their terminal vendors, payment networks and
processing partners to determine the best available and EMVCO approved chip configurations meeting their unique
business needs. The evaluation of individual business requirements and desired chip functionality against the
availability, cost and complexity of deployment are key considerations.

What is a Fallback Transaction?


A fallback transaction normally occurs when a chip card, presented at a chip capable terminal, cannot be read due
to a technical issue with the chip or terminal resulting in the technology “falling back” to a magnetic stripe or
manual key entry transaction. This situation is not expected to occur frequently since the chips on the cards rarely
fail. In some situations, a fraudster may create a counterfeit card with an intentionally damaged chip in order to
invoke this scenario. All fallback transactions must be authorized online and properly identified as fallback. The
issuer assumes liability for properly formatted fallback transactions, approved by the issuer.

Fallback is a high risk transaction often resulting in a decline by the issuer. To proactively address fallback risk
exposure, issuers should implement clear fallback authorization guidelines. Since the payment networks’ U.S.
liability shifts in October 2016, issuers will bear responsibility for any resulting fallback fraud if the merchant had a
working EMV terminal.

As defined by EMVCo and the payment networks, legitimate fallback should only occur when the terminal cannot
read the card’s chip due to technical issues with the chip. Because the issuer holds liability on fallback transactions,
the authorization of fallback transactions, particularly manual keyed entry fallback, is deemed risky by the payments
industry.

Given the extremely low probability that both the chip and the magnetic stripe are faulty at the same time, manual
key entry transactions are especially suspect. EMV hierarchies of risk management should be followed, with the
transaction attempting the next lowest risk transaction. When a chip read fails, the next lowest risk transaction
would be a transaction using a magnetic stripe swipe. Fallback to magnetic stripe is more secure than manual key
entry and provides more information to the issuer to evaluate the transaction for authorization.
Copyright © 2017 CSF International, Inc. All Rights Reserved.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy