Chip Card Orientation Guide
An Introduction to chip card transition process
Prepared For: Smith College
Date: December 17, 2015
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Today’s Discussion
 Payment industry trends and chip card basics
 Our approach to chip card
 Chip card issuance process and program implications
 Next steps – validation of participation
 Q&A
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Payment Industry Trends
and Chip Card Basics
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Trends towards Chip Technology
Evolving Payment Landscape
Account
Information
Security
Credit Card
Fraud
 Card skimming
 Protecting personal
information
 Counterfeiting
Acceptance
Issues
 New technology
adoption
Source: EVMco, A Guide to EMV Chip Technology, V 2.0 November 2014
The evolving landscape has driven the
need for enhanced payment technologies,
such as chip cards

Contain an embedded microchip,
which has the capacity to store
information securely*

Improves security for payments at
chip terminals*

Features to help reduce
counterfeit fraud*

Promotes broader acceptance and
flexibility*

Cardholders who travel internationally
are able to use chip cards at more
locations*
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Trends towards Chip Technology
Chip technology is the standard in many
locations outside the U.S.
U.S. transition to Chip technology is starting
to take shape: October 1, 2015 Liability Shift

Today, there are over 2 billion active chip cards
with access to over 35 million chip terminals

Networks are promoting an industry shift to chip
technology, specifically the October 2015 liability shift.

In many countries, majority of terminals are chip:

Gives merchants incentive to switch to chip technology
by providing fraud relief for chip transactions; however,
this is not a mandate.

Forecasting suggests that less than 50 percent of U.S.
merchant terminals (excluding gas pumps) will be chipenabled by the end of 2015.


Europe - 99% of terminals

Across Asia Pacific - 72%
Canada, Latin America, the Caribbean, Africa
and Middle East - 85%
Source: EVMco, A Guide to EMV Chip Technology, V 2.0 November 2014
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How Chip Cards Work
Enhanced Data Security*
Networks
Payment Method
Sign or enter
your PIN
Insert Card
APPROVED
Issuers
Payment
Systems
* Enhanced Data Security: The chip generates dynamic data for every transaction; a unique
one-time code that can not be replicated.
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Our Approach to Chip Cards
Visit jpmorgan.com/visit/Commercial/ChipCard for reference materials that further
explain chip card benefits and usage.
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Cardholder Experience: First Steps
Activation:


Call the number on the activation label upon receipt of card
Follow the prompts to activate card and set a four-digit PIN
PIN Management:

All PIN management is done via automated telephone system, cardholders will not
receive an assigned PIN in the mail; they will customize a PIN.


To re-set a PIN, call the number on the back of the card and follow the prompts
If a cardholder already has a PIN for other card, that will be the PIN for chip
purchases as well (i.e. only one PIN for chip and ATM transactions)
First Chip Purchases: IMPORTANT

After the card is activated and the PIN is set, cardholders will still need to make a few
chip purchases at a chip reader that is connected to other systems (i.e. online) in
order to sync the PIN to the card for future purchases that will require the PIN.

In order to do this, we recommend cardholders complete their first two chip
transactions where an attendant is available, as these chip readers typically have the
needed connectivity.

If a cardholder chooses to go to a self-service terminal for a first chip transaction (i.e.
PIN has not been synced yet, as recommended above), they may be prompted to
enter their PIN several times. There is a current mandate from the Networks to move
these locations to “no Card Verification Method” minimizing negative experience.
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Cardholder Experience: Point-of-Sale
Our chip card is built to promote broad acceptance*, leveraging both signature and PIN
authorization methods
Three methods:
1
Swipe With Signature
2
Chip With Signature
3
Chip With PIN (or no CVM)
Additionally, phone and Internet transactions will work the same way they do today
*Source: EVMco, A Guide to EMV Chip Technology, V 2.0 November 2014
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Chip Card Issuance
Process and Program
Implications
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Transitioning to Chip Card
Orientation and Validating your
Participation
Kick off and Preparations
 Review chip card benefits/usage
 Reconfirm critical decisions for
executing your program transition
Activities
 Discuss requirements and your
interest to move forward
 Make critical program decisions
regarding your transition
1) Chip Card Plastics
2) Card Issuance & Delivery
Target
Timing*
3) Cardholder Communications
and Information Validation
December
 Finalize schedule
for your
transition
 Prepare and distribute cardholder
communications
 As necessary, work to update
cardholder information and
validate data accuracy
Card Issuance and Experience
Assessment
 Begin chip card issuance to
cardholders with agreed
strategy
 Cardholders activate, set a PIN
and use the new cards for
purchases
 Send targeted cardholder
account list for processing (if
applicable)
December-February
March-May
* Modifications to recommended timing will require approval
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Topic 1: Chip Card Requirements
Plastics/BINs
Chip Plastics and
Materials
Please note that the following are not supported for Chip Card CA:
• Fleet Plastics / functionality
• Chip Plastics for ghost accounts (cards not intended for Point-of-Sale purchases)
• Customized Card Materials (i.e. insert, label, statement messaging)
• Declining Balance Cards – Note that these can be force reissued to chip cards if desired (but not
recommended); expiration dates would be extended out 2-3 years as per standard transition requirements
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Topic 2: Card Issuance Process
Card Issuance
Process
Forced Issuance:
• Force reissue all cards with chip cards during one targeted
month ahead of their existing expiration dates.
• Expiration date changes: month will stay the same, year will be
extended.
• Magnetic stripe cards will be deactivated approximately 30
days after chip card issuance (or on their natural expiration
date); there is no deadline for activation of new chip card.
• Forced issuance aligns with our broader chip card roll out
strategy in 2016; consider implications as need be.
Card Delivery
Validation
Critical to validate delivery for all chip cards
and update special handling codes if needed.
• Direct delivery to cardholder: Cardholder
contact information will need to be updated
systemically to ensure accurate and timely
delivery of cards.
• Bulk delivery: Cards sent to one address for
subsequent distribution. If cards are force
reissued, high volumes may challenge this
option.
Please note:
• Account List: Your Program Coordinator will work with you to facilitate account list processing. We will need to validate
the company number and issuance strategy with you (client) in order to make the manual adjustments to the
program/accounts.
• Interim Cards: Replacement cards or new accounts issued between orientation and before the official launch of chip
issuance for your program (i.e. targeted month), may vary as magnetic stripe or chip cards. Once your organization has
passed through final set-up, subsequent cards will all be issued as chip cards; all timing can be confirmed with your program
coordinator.
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Topic 3: Cardholder Information Validation and
Communications
Cardholder
Information Validation
Opportunity
•
Communication
Templates
Templates (to right) are created to help you
with this process. Updates to cardholder
information need to be delivered in the
account list provided.
Email templates are available to assist you with
sharing information with your cardholders:
•1
Welcome: Inform your cardholders that new chip
cards will be issued to them.
•
Ensure all cardholders have valid
information in their authenticating fields
(security identifiers) so that the automated
system and customer service can easily
identify them.
•2
Update Cardholder Information: Direct your
cardholders to your internal systems to update their
addresses, which will ensure card delivery to the
correct location.
•
Educate your cardholders on the activation
process and what security identifiers your
organization uses.
•3
•
Where possible, leverage platform
functionality for required updates.
Security identifiers: Educate your cardholders on
your organization’s cardholder security identifiers
that are used to verify identity in automated
telephone systems and to a customer service
representative
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Let’s Review and Validate Your Participation
Program
Component
1
Chip Card Requirements (i.e.
Chip Plastics / BIN / Materials)
2
Chip Card Issuance Option,
Timing and Delivery
3
Cardholder Information
Validation and Communications
Program Implications
and Decisions
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Next Steps
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Next Steps
1 1.
4
Review chip card
resources from this site
(including the FAQ):
jpmorgan.com/visit/Com
mercial/ChipCard
1. Prepare for transition
via program updates
and cardholder
information
validation
2 1.
Confirm you would like
to transition to chip
cards and agree to chip
card issuance plan, key
decisions, and timelines
3 1.Customize
and
distribute cardholder
communications
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1 Validate issuance
instructions with
program coordinator and
prepare for issuance
(send account list if
applicable)
We are here to assist you and provide you with support along the way
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Helping you make the Transition

Your relationship resource: Continued contact for ongoing program questions or needs

Your program coordinator: Day-to-day contact to coordinate activities with your transition, as well as,
our operational resources
Responsibilities
Roles
Smith College
Relationship Resource
Peri Kramer
Program Coordinator
Dan Marshall

Make transition decisions



Manage transition
scheduling
Day-to-day contact for
transition activities
Provide organizational
requirements

Ongoing contact for overall
program and relationship


Host meetings to manage
project plan, address issues
and secure decisions
Guide and support
program decisions

Capture and document
requirements
Help manage issue
escalation

Account list processing

Liaise as needed with internal
bank operational resources

Align internal resources

Support project
management, i.e. data
review and submission of
account list for conversion
(if applicable)

Send cardholder
communications

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Discussion and Questions?
Q&A
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