Jay J. Davis
Territory Alliance Manager
360-831-7055
jay.davis@ncr.com
EMV – What you need to know…
Agenda
EMV Announcement
What is EMV?
What changes will happen?
Who are the players in EMV?
Benefits and the Business Drivers?
EMV at a Global Level
3 Types of EMV
EMV Approval Levels
Future of EMV
Next Steps and Implementation Considerations
Resources
NCR Confidential
The announcement…
NCR Confidential
What is EMV ?
EMV is a set of specifications defined by
E U R O PAY
International
EMV Specifications are now owned by……
Formed in February 1999 to manage, maintain and enhance EMV Specifications
www.emvco.com
Now also…
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What’s going to change?
Hardware
Consumer Cards
Software
Back end/Host
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Who are the Players in EMV?
EMVCo.
They set the EMV standards.
The Brands (Visa, Mastercard, Amex, Etc…)
All have slightly different approval processes that must be
certified.
The Networks
A new update in software will be required to implement EMV. This
is called Level 2. All new software updates must be certified
through the networks.
ATM Hardware and Software Provider
Will supply hardware (level 1) and software (level 2)
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Benefits and Business Drivers
Reduce Fraud using a Smart Card
Replacement of Magnetic Cards with Smart Cards
Optimize process
Both from the back end and customer facing end
Innovation
Consumers will demand the convenience and speed
Global Presence
Fraud will migrate to regions with no EMV
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Security: Mag Stripe VS Chip and Pin
Magnetic Stripe Reader
Chip and Pin
3 Tracks of Personal Information
Microprocessor Chip
• Doesn’t require power or PIN to
access card data
• Secure: Can’t access chip without
power and pin
• Limitations when traveling abroad
• Consistency across the world
• Financial Institution can lose
$50,000 for one fraudulent attack of
an ATM.
• France saw 80% reduction in Fraud
• Holds more data
• Limitation of 3 track technology
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Global Presence
NCR has learned ‘Best Practices’ from our global implementation
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3 Types of EMV
Chip and Pin
Chip and Pin
NFC-Mobile Wallet
Contactless
Contactless
NFC-Mobile Wallet
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Smart Card
Contacts
Smart Card Chip (Microprocessor)
54 mm
Magnetic Stripe (back of the Card)
Embossing Area
86 mm
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EMV Approval Levels
VISA/MasterCard
“Network
Certification”
(Bank/Acquirer)
“EMVCo
Level 2 Approval”
(SW Provider)
“EMVCo
Level 1 Approval”
(HW Provider)
Acquirer (Host)
MasterCard D/C
VISA D/C
Terminal Application
EMVCo Application Kernel
HW & Platform
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VISA/
MasterCard
“Acquirer
Brand
Approval”
(Bank/
Acquirer)
Are you Hardware (level 1) Compliant?
NCR’s Level 1 Status
Other ATM Provider’s
• Ask if they have deployed
any smart card readers.
• All SelfServ delivered in
2011 have EMV Hardware.
• Ask if they plan to provide
upgrade kits for motorized
or dip.
• For Dip Card readers have
been shipped past several
years on Personas and
SelfServ
• For Motorized it has been
an optional feature for
Personas and SelfServ
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EMV Software Compliance Steps (level 2) NCR’s Plan
The Facts: US Software has not required the EMV kernel previously.
Steps of Engagement:
1.) Make sure hardware is EMV compliant
2.) Contact your local Professional Service resource
3.) Develop an EMV Requirements & Implementation Document with the FI
4.) PS will engage engineering to develop a kernel for specific software platform
5.) PS resource will work with Networks to certify your software kernel.
6.) Networks will work to approve the requested brands.
Some things to know:
1.) First come first serve w/Networks
2.) Complex process…so get started early!
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Future of EMV- Mobile Wallet NFC
Security
PIN Encrypted & secured within close proximity
Loyalty
Can store all of your loyalty cards and coupons
Bye Bye Paper Receipts
Ability to download digital receipts onto your phone
Convinience
All your cards in one compact, organized place
Sources: Gartner Research Firm 2011
Datamonitor Research Firm 2011
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Next Steps and Implementation Considerations
Training and Acceptance
Test and Pilot
Design and Build Stage
Planning: Formally Define Requirements
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Helpful Resources
EMV Official Guide
http://www.emvco.com/best_practices.aspx?id=217
YouTube EMV Webinar by Smart Card Alliance
http://www.youtube.com/watch?v=3nUz1kIlQyk
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Questions?
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Jay J. Davis
Territory Alliance Manager
jay.davis@ncr.com
Thank You!