EMV Transaction Processing include EMV Chip & PIN transaction|emv payment transaction


EMV transaction processing enables offline risk management with a common decision being taken:

  • The terminal (acquirer)
  • The card (issuer)

There are three possible outcomes:
  • Offline approval,
  • Offline denial and,
  • Online transaction

For the card, the decision is made according to the risk management rules defined by the issuer. EMV allows offline risk management by both the issuer and the acquirer.

EMV Risk Management

Magnetic stripe transactions are controlled by the terminal. EMV transactions are controlled by the card and the terminal.

EMV Risk Management uses...

  • CAM (Card Authentication Method) and CVM (Cardholder Verification Method) result
  • Terminal checks
  • Card checks
  • On-line checks

With EMV risk management, Issuers can have control on a card-by-card basis and Script processing allows issuers to manage the card dynamically.

The success of CVM is directly proportional to how well the CVM standard rules are understood and deployed in production. This is real when it comes to EMV mandated CVMs.

The biggest challenge of authorising a transaction to a genuine cardholder lies in effectively implementing the correct CVM without losing balance and control on business intention and customer complaints.

9 US Attorneys General Tells Card Associations, Large Card Issuers To Go With Chip and PIN

The 9 US Attorney generals of:

  • Connecticut,
  • Illinois,
  • Maine,
  • Massachusetts,
  • New York
  • Rhode Island and
  • Vermont,
  • Washington D.C and
  • Washington State

Sent a letter to Visa, MasterCard, Discover, BofA (Bank of America), Cap One (Capital One), Citigroup, AMEX (American Express) and JP Morgan Chase urging them to expedite the rollout to chip and PIN, not chip and signature.

To this end, we write to urge you to expedite the implementation of CHIP and PIN technology in the United States.

You have exercised your discretion in collectively moving to chip and signature, and we now call on you as the key decision-makers to move to the full chip and PIN technology as soon as possible.

This technology is neither new nor novel. To the contrary, it is already widely used throughout Europe and other regions with great success.

American consumers and businesses deserve no less. We urge you to act more quickly to implement an effective and available consumer protection measure.

The purpose of this letter is not to suggest that Chip and Pin or any other particular technology should be enshrined in federal or state law as a legal mandate on card issuers.

Rather, this letter calls upon you as good corporate citizens to voluntarily expedite the implementation of existing technology that offers the most substantialsecurity benefits, and to continue to adapt and improve security as quickly as possible as technology advances.

To see full article: http://www.cleveland.com/business/index.ssf/2015/11/9_attorneys_general_tell_banks.html

At this end, every European citizens are with the Attorney Generals! We've used Chip and PIN in Europe for over ten years and it's an excellent end-customer proposition.

A complete doddle at the point of sale (POS) {including unattended} which works well for any cardholder - from the technical savvy at one of the spectrum right through to grandmother at the other end.

However, Signing name at point of sale seems positively antiquated.

EMV Migration Forum Meetings

Here is a shocked disbelief! During the many of EMV migration forum meetings/discussions between the card associations, the banks and merchants as part of the EMV Migration Forum, VISA and some of the US regional networks were the ones didn't want to deal with Chip and PIN.

Visa didn't want to give up the extensive use of signature debit they have in the US as these process along the credit rails.

Because if the existing signature debit cards went Chip and PIN, then VISA would lose more transactions to the CHIP and PIN debit networks.

On the other hand, some of the regional networks wanted the ability to add signature to their PIN debit cards to compete with Visa and MasterCard. It was a shocked disbelief what Visa actually said out loud was, THAT it's too difficult to keep PINs in sync.

On the other hand, MasterCard encouraged Chip and PIN, credit or "signature/offline" debit cards processing as PINed transactions.

EMV Credit or Signature Debit Card

Some people in the US may have been issued a PIN for new EMV credit or "signature" debit card.

At HSBC USA, where Chip and Pin are implemented at the urge of MasterCard. It was found that keeping PINs in synch is real especially when the originator of the transaction is an IVR from which cannot get incoming EMV data.

The EMV Migration Forum have published on the year 2015 a white paper on implementing EMV PIN Change at the ATM, but neither of US customers are doing that now.

On the personal level, the US Bank has issued to me an EMV debit card. When I used it at Home Depot it required PIN, when I use it at Target it requires signature.

So it's not just the banks, it's also the acquirers when they set their terminals. We are seeing all sorts of variants right now from acquirer to acquirer.

Also, we have seen Wells Fargo issued a new non-chip Debit Card and is ready for the world of EMV based transaction processing, it may be a sign of the issues with their home grown retail payments engine. Also, WF is issuing chip cards, just not to some midwest states, like Nebraska.

It's amazing how far behind Unted States of America (USA) are on EMV technology. Several months ago some people were in African continent and couldn't use their non-EMV debit card because the acquirers wouldn't accept magnetic stripe as they had to rely on cash.

Several months ago in Mexico, some Americans couldn't use their corporate chip enabled card because it didn't have PIN activated, so they had to enable PIN on it; yet other vendors in Mexico allowed some people to use Chip + signature.

We'll see different variations in different countries/different acquirers but Chip+PIN should be the end goal.

Most people preference is for a PIN based EMV chip card to align with the rest of the world.

As for your debit card from US Bank, it's probably still working just like it would have before the chip. This is because the US Durbin Amendment requires the issuer to provide all merchants a minimum of 2 routing options for all debit cards - enabling the merchant to select the lowest cost routing option.

Most US issuers do this by enabling routing along the signature debit (Visa/MasterCard) rails or the PIN debit regional network rails.

However, this is further complicated because the cardholder, also has the right to choose if they want to provide a signature or a PIN.

By ensuring compliance with the Durbin Amendment is the reason why issuers and merchants have had a very difficult time rolling out EMV debit cards. There are no routing restrictions for credit cards.

Chip and Pin Machines for Small Business

Finally, American businesses are adopting Chip and PIN Solutions to provide businesses with everything they need to start accepting credits debits card payments including Credit Card Terminals and Card Processing.

There is a demands for Chip & Pin Machines, Mobile terminals (Perfect for businesses on the move to take cards anywhere, anytime), and Countertop Terminals, which is compact, fixed card machines; perfect for retail and hospitality.

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