VISA Application Platform Contactless
In all honesty, there are major players in the field of contactless applications;
But here we distinguish two important platforms using the contactless technology; namely MasterCard and VISA.
Visa and MasterCard intend to play a major role in the future payment applications.
They have already joined the movement and launch many developments over contactless payments.
They begin to agree to a common communications protocol for contactless payment devices.
This is based on the MasterCard PayPass protocol. Mastercard made the first step with a contactless credit card.
The Visa PayWave technology is rather largely developed within many European countries. They both targeting the American market to future deployment.
Visa and Mastercard technologies comply with the EMV (Europay Mastercard Visa) standard.
EMV standard defines the interoperation between smartcards and terminals for authenticating debit and credit cards.
It defines a secure security measures and provides a strong authentication along the process.
Visa contactless cards that define the EMV standard over contactless communication does not differ so much with the contact cards. The difference will be in the usages and applications.
Flow faster with VISA Contactless Online Mobile
•Visa contactless says- Life is on the move
•Visa contactless says- The way you PAY is changing at Payment Centre
•Visa contactless says- Use your Contactless Payment card or Mobile in a NEW way
•Visa contactless says- Use it to PAY
•Visa contactless says- Look for the Contactless symbol
•Visa contactless says- Hold you're contactless enabled MOBILE to the reader
•Visa contactless says- Wait for the beep
•Visa contactless says- PAY in seconds
•Visa contactless says- FEEL the Freedom
•Visa mobile contactless payment and cards.
Flow faster with VISA Contactless Online Mobile
Many financial institutions are aiming to bring real-time mobile payments - in store, online and through apps - to millions of people by integrating its system into bank apps (or pay by Bank app) and tapping into the Faster Payments systems.
Visa like many other financial payments companies knows and recognised that our smart mobile phones are with us almost all the time. Wherever we go!
Consumers use their smartphone for more and more different things. For example, using an online service like Pay by Bank app, which will automatically open bank app on the consumer's phone from which, once a user logged in, they can complete payments.
So it's natural that public paying consumers will be using smart phones to make payments at retailers and on transport journey in the near future.
Is this the era of Mobile Contactless? Are Contactless payment cards going mobile? What is, in essence, simply payments through your mobile?
Contactless ISO 14443
The ISO 14443 is the international standard for contactless smart cards operating at 13.56MHz in close proximity
of a reader antenna.
This contactless ISO sets communication standards and transmission protocols between a card and a reader to create interoperability for contactless smartcard devices.
Two main communication protocols are supported under the contactless ISO 14443 standard, namely: Type A and Type B.
Other protocols were only formalized: Type C (Sony/Japan), Type D: (OTI/Israel), Type E (Cubic/USA) Type F (Legic/Switzerland)
Contactless ISO 14443 is divided in four parts and treats Type A and Type B cards as:
- ISO-14443-1 - defines the size an dphysical characteristics of the antenna and the microchip;
- ISO-14443-2 - defines the characteristics of the fields to be provided for power and bi-directional communication between coupling devices and cards;
- ISO-14443-3 - defines the initialization phase of the communication and anti collision protocols;
- ISO-14443-4 - specifies the transmission protocol.
The ISO-14443 uses different terms to name its components.
- PCD - proximity coupling device or reader;
- PICC - proximity integrated circuit card or visa contactless card.
Contactless ISO 18092
The NFC is a short range (10 to 20 centimeters) wireless communication technology that enables
the exchange of data between devices over a short distance range.
Its primary goal is the smart mobile phones usage. This open platform technology is standardized in ISO 18092 normal NFC Interface protocol.
In NFC technology, two communication modes are supported; namely passive and active communication modes of NFC interface protocol to realize a communication network using NFC devices for networked products and also for consumer equipments.
Contactless ISO 21481
The ISO 21481 standard (NFC interface protocol) is derived from ECMA-356 (interconnection) standard.
It specifies the selection mechanism of communication mode in order to not disturb communication between devices using ISO 18092, ISo 14443 (visa contactless interface - proximity) and ISo 15693 (contactless interface - vicinity).
Contactless card in online banking
Is there a benefits and limitations of Radio frequency identification (RFID) authentication for contactless payment?
Isn't the use of radio frequency and the small distance allows some security weakness?
The quick answer to the questions is Yes and Yes! Lets me exaplin.
We know that Visa and MasterCard have an agreement to share a common transmission protocol and test and results for the contactless payments by radio frequency in the point of sale (POS).
Contactless payments as developed in the programs for the Visa PayWave and Mastercard PayPass, make it possible for the cardholders to carry out fast real-time payments services by a simple passage of their card in front of a terminal;
Hence, avoiding them giving their visa contactless payment card to a merchant or handling cash.
Visa contactless payment are much more practical for the consumers and are particularly adapted in environments of purchase where speed is essential, like Mcdonalds or Kentucky Fried Chicken (KFC) fast food, the gas petrol station, but also theaters.
They also offer new appropriate payments by using a card in unusal environments of purchase, like slot machines or tolls.
To make a payment, the user present his or her visa contactless card near the front of a terminal card reader (a beep is emitted by the reader).
A request for an online authorization service (or via a stand-in authorizer ACI BASE24-eps payment systems) is sent. The payment is carried out. There exist two types of MasterCard PayPass cards (not visa contactless):
Contactless Visa Europe
For the European market, Visa is using RFID enabled dual-use debit cards, based on its own Visa contactless payment technology.
VISA payWave dominates contactless cards and by far the largest schemes in Europe for contactless payments. MasterCard PayPass (include Maestro) slowly follows in the second place.
Visa aims at European countries who have already using EMV complient cards. In addition, Visa is in talks with mobile manufacturers to use Near field communication (NFC) technology that will enable a mobile smart phone to be used instead of a Visa contactless card.
For US market, the MasterCard contactless PayPass is not EMV compliant, so, the target is to limit the authorization requests.
• For example, for a small amount say... $30.00, an authorization of $30.00 is requested, then debited of the small amounts is carried out;
• For the payments lower than the authorization threshold, reducing of the preceeding payments, are not online transaction object.
• However, as soon as the cumulated ceiling of pre-authorization is reached, a new pre-authorization is required.
For example, when the amount exceeds $30.00, an authorization request is always sent.
In a developed contactless card markets such as United Kingdom, Poland, etc... A study has shown that MasterCard PayPass accounts for the highest proportion of payments in a number of growing countries, such as Holland/Netherlands and Russia, where all contactless cards are MasterCard.
But as yet relatively underdeveloped across Europe, where the numberof contactless payments is forecast to rise 100-fold between 2015 and 2024.
The study shows other schemes account for a tiny proportion of contactless card payments. Other schemes such as Girogo/ Co-operative/ Savinggs Banks/ Amex ExpressPay,who operates domestic contactles scheme in Germany, Greece, Turkey and UK.
Contactless cards has spread quickly in Europe, and forecasts the payment volume to increase ten-fold going forward in 2020.
Due to the greater contactless card usage in a number of European under-developed markets where MasterCard is the main scheme, the gap between VISA and MasterCard is likely to narrow to reflect the overral scheme shares for all contactless payments in Europe.
NFC Contactless Visa
NFC can be used as a card reader or terminal or a simple visa contactless card. Before NFC, visa contactless applications, like payment
or control access, were only implemented on cards.
These developments were limited because the card has no battery power supply.
Mobile phone is a possible solution in face of this problem because it is auto provided with energy. Lots of new applications can be charged on an NFC phone, but not on a visa contactless card.
As a disadvantage to credit or debit card, mobile phone memory is not safe enough for storing secret data and critical applicationa.
That is why these applications can be embedded on a separate chip. The security and confidentiality of data are ensured by encryption, which is handled by the chip itself.
The chip can be located in several places; and this has a disadvantage in the smart phone, in that the chip is not transferable.
It is integrated in the mobile phone. This system is called duall chip and has many advantages such as independence of telecom operators, security, etc...
This solution has been chosen by the International Test and Evaluation Association (ITEA) research project called Smart Touch whose main purpose is to study and promote the use of NFC smart mobile phones for different apllications including payment;
However, in the SIM card, this solution has a problem in that there is no standard, and the telecom operator is responsible for all applications on its SIM card, thus responsible for the NFC device.
NFC mobile can be used as a reader or teminal with a visa contactless card or another mobile phone (ISO-18092), or it can be used as a contactless card (ISO-14443).
Smart mobile screen , key pad and connectivity features can be used to create more and more user friendly applications.
NFC Phones as a Contactless Smart Cards
The NFC smart mobile phone can be used as a visa contactless debit or credit cards.
In this instance, the NFC technology does not bring anything more than a contactless card (except for the reduction in the quantity of materials of the card, which is more useful).
The proximity payment is an example of this applications. Therefore, the merchant who has an NFC device or terminal, enters the amount of the transaction.
The smart mobile phone owner then puts the phone near the device reader and information about his or her transaction are displayed on his or her mobile screen.
If the owner agrees the transaction, he or she validates and enter his or her PIN code.
He or she puts the phone on the device reader to send all information (number bank account etc...)
He or she finally can take his or her ticket, since the transaction is closed.
In an Asian Country, Japan, this NFC contactless payment solution is actually used.
Quite a few numbers of taxis adopted NFC payment system in their vehicle, which secure transactions for taxi and users do not need any cash money.
Some gas petrol stations are already equipped fo rthe NFC payments with mobile phone. Lots of reaseach programs are based on NFC technology.
How do Visa mobile contactless payments work?
Visa is a technology and transaction payments business company. Visa are not a bank and don't issue credit or debit cards. Nor are visa contactless a credit card company, so visa don't lend or set the fees that consumers pay. This is a surprise to many people!
The Visa mobile contactless payments follow and use the same RFID technology as Visa contactless payment cards - meaning consumer simply hold their smart mobile phone to a contactless payment reader, wait for beep and you've paid.
With Visa mobile contactless payments, consumer will be able to use their mobile smartphone to keep track of their daily spending and check their available balance on the move.
How can I start using
Visa mobile contactless payments?
A huge number of banks and mobile operators do offer Visa mobile contactless payments to their customers.
In United Kingdom (UK), the following banks and financial institutions issue Visa cards (in alphabetical order):
- Ahli United Bank
- Allied Irish Bank (GB)
- Bank of Baroda
- Bank of Cyprus UK
- Bank of Scotland
- Barclaycard Business
- BBVA UK
- Bradford & Bingley
- C Hoare
- Capital One
- Citi Cards
- Citibank Commercial Cards
- Citibank International Personal Bank
- Close Bank Guernsey
- Co-operative Bank
- Coventry Building Society
- Cumberland Building Society
- Duncan Lawrie
- Fairbairn Private Bank
- First Direct
- First Trust Bank (AIB NI)
- GE Capital
- Liverpool Victoria
- Lloyds TSB
- Lloyds TSB Corporate Markets
- M&S Bank
- Nationwide Building Society
- Northern Rock
- Norwich and Peterborough
- Royal Bank of Scotland
- SG Hambros
- Standard Chartered Bank (CI) Limited
- Wesleyan Savings Bank
In UK, the above lists banks that use visa debit cards and there are a number of pilot programmes for visa mobile contactless payment. So ask your bank or financial institutions about their plans for Visa mobile contactless payments.
Visa mobile contactless are payment systems used for debit, credit and pre-paid currency cards.
When you make a purchase with your visa contactless card or visa mobile contactless, the payment system provides communication between the point of purchase and your bank, managing the way in which the transaction is accepted, authorised and processed.
You'll still pay your bank or financial institution or building society and when you pay your credit card bill it's your bank you'll pay.
Account providers will also set any interest rates and reward points associated with your account as well as issuing the card to you.
Do you want faster way to pay?
Visa Contactless is a faster way to pay for the everyday. With visa contactless, paying for everything under £30.00 is quick and easy.
Look for the symbol on your Visa credit or debit card and you're ready to start paying with contactless. It is as easy as 1.2.3
1. Look - Look out for the contactless symbol at the till.
2. Touch - There's no need to enter a PIN. Just hold your card flat against the reader.
3. Go - Wait for the green light or the beep to confirm your payment and go!
It does not matter what grocery items you're buying.
Whether you're paying for your baked beans or a fresh express lettuce for your morning breakfast, paying with your Visa contactless can speed up your day.
You'll be dazzled how fast, simple and convenient it is.
1. It's fast - You can pay for things quickly without having to search for the right change or enter your PIN.
2. It's simpler - Just look for the contactless symbol, touch your card and pay. It's that simple to get started.
3. It's secure - Visa contactless uses the same secure technology as your Chip and PIN card and there's a limit of £30.00 per transaction. As an extra security measure, you may occasionally be asked to enter your PIN.
How to get visa contactless card?
Anybody who wants Visa contactless card can get it through its bank or building society. All you need to do to get it is simply
ask your existing bank or building society or your financial institution.
Experience has shown that Banks usually change most normal visa card when your existing card payment has expired.
You can contact your bank about the possibility of upgrading your existing card to visa contactless payment card and you have nothing to lose. Just ask and see what they will say - good luck.
If your visa card is damaged or does not look nice when it's first arrived you could requests for a replacement. Your bank should consider your requests and make a decision.
How safe and secure is a
Visa contactless payment?
Visa contactless cards are extremely safe and secure. You can add an additional contactless security by putting your visa contactless card in a RFID blocking sleeves.
By inserting your visa contactless card in a sleeve, it means that it can't be read by any scamming device while the card is in the sleeve. As you know if your card can't be read then it can't be charged.
The visa contactless payment debit cards has a spending cap of £30.00 per transaction purchase, and occasionally, you will be asked to enter your PIN to verify you are the genuine visa cardholder.
Visa contactless payments tipping point
A number of contactless payment (not only visa contactless) initiatives have been launch in the united Kingdom (UK) in
June 2008 by Banks and Issuers such as Barclays, RBS, MasterCard and Visa;
Together with the retailers and Fast Food outlets, Transport for London TfL (London buses, Tube, Trams and DLR), Stagecoach buses (in Liverpool) and London's black cabs.
Before the start of London 2012 Olympics, it was expected that Visa will passed the 20 million contactless cards in circulation.
There are more than 70,000 visa contactless locations where the contactless payments are accepted.
Whilst many smaller retailers and fast food outlets have yet to join schemes, but there appears to be sufficient insfrastructure in place. Now, why the delay? What might be the tipping point?
The "tipping point" may be the London Olympics 2012 and Paralympics where Visa; one of the London 2012 Olympics sponsorer can potentially expose 850,000 ticket holders to the new visa contactless technology.
A small investment in a nominally charged (say £5.00) pre-paid contactless card to pay for soft drinks refreshments inside the olympics arena might have a significant impart on adoption.
Such an event is sufficiently high profile to get people accepting visa contactless payments as a suitable alternative to cash.
If this is the case "innovators" may gain an early advantage over their more conservative competitors.
Smart Card Alliance Payments - Birth VISA Contactless
Visa International developed a new global payment specification that removes the need to physically insert a smart card into a
reader in September 2002.
The new global payment is based on the ISO 14443 International standard, the new specification uses a chip embedded in a plastic card or an electronic device such as a mobile phone.
The device, according to Visa International in 2003, is held in front of a terminal and a wireless interface transits the payment information, which removes theneed to insert or swipe a payment card, making it easier to pay in places where speed and convenience are important.
Visa hope that these technologies will facilitate the move closer to the company's goal of replacing cash.
In April 2002, Visa contactless payment was trialed in South Korea in conjunction with Harex Technology and the mobile network providers.
It went commercial for the first time in the world as a wireless mobile proximity payment service called ZOOP Payment.
Zoop payment is a service that enables individuals and businesses to take NFC-enabled cards and smartphones, Chip & PIN, and magnetic stripe payments on the go tap or wave their phone.
Presently, ZOOP payments is being used in some over 4,000 places including major department stores, coffee shops and restaurants in Seoul and Sungnam City.
In April 2003, a pilot program was launched to test infrared credit card payment service between Visa International, Nippon Shinpan, OMC Card, AEON Credit and NTT DoCoMo Inc.
The credit card data are downloaded and then stored in the DoCoMo 504i and 504iS mobile phones, which are equipped with infrared transmission (IrDA) ports.
The pilot leverages a DoCoMo application for payments based on the Visa Proximity Payment Messaging Specification.
Every DoCoMo 504i and 504iS phone is standard equipped devices via an infrared signal.
In the mean while, MasterCard and Nokia were busy working on their own and launched a similar trial for Contactless payment initiative in May 2003 using Nokia phones as credit cards.
The Nokia phone Smart Cover is embedded with a contactless chip and a radio frequency (RF) circuit.
The chip has been specially programmed with pre-registered MasterCard payment account information and is compliant with the MasterCard PayPass specification.
When consumers tap or wave their Nokia phones on the specially equipped PayPass readers at the point-of-sale (POS), payment account information is transmitted to the terminal.
The transaction is then processed through MasterCard's highly trusted payment network in the normal way. A system provided JP Morgan Chase processes the payment account information.
Just a few seconds after the consumers tap or wave their phone, payment confirmation is received and the transaction is complete.
Today payment methods are dominated by cards and cash simply because their is no better alternative despite their lack of security and lack of convenience.
Cash has the additional benefit of providing anonymity, which is not present in any other forms of payment.
In 2003, Smart Card Alliance highlighted that contactless payment allows Issuers to penetrate the cash payment market, enjoy increased customer transaction volume and improve customer retention and loyalty.
At the same time, consumers enjoy the convenience of hands-free payment, the ability to pay for multiple services using one device and the security of not having to display a card for payment.
The current specifications for the MasterCard PayPass, American Express ExpressPay and Visa Contactless programs will allow the same interface to be used between mobiles phones and contactless POS systems, allowing mobile payments to leverage the thousands of contactless readers being deployed.
MasterCard, Visa, Nokia,Motorola, Philips and ViVOtech have demonstrated that merchant locations that are enabled for MasterCard PayPass and Visa contactless payments will also be able to accept payments from NFC-enabled mobile phones.