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1 First Time Users – Click to Start Returning Users – Click to Resume
The EMV Ecosystem An Interactive Experience for the Payments Community Smart Card Alliance Payments Council January 30, 2013 First Time Users – Click to Start Returning Users – Click to Resume Copyright © 2013 Smart Card Alliance

2 Instructions on how to use this presentation
Next From this slide forward you should use the mouse for navigation. When the mouse pointer changes to a hand you can click it. All buttons will be clickable and navigate you through the presentation. At anytime you can go BACK, go to the HOME page or EXIT the presentation by clicking on the navigation buttons at the top of the page. Clicking on the Smart Card Alliance logo will provide you with more information about the organization and the contributors to this document. - Click NEXT to proceed Copyright © 2013 Smart Card Alliance

3 About this interactive presentation
Next The Smart Card Alliance Payments Council developed this interactive presentation to provide an educational resource for the payments industry. The presentation shows the full EMV ecosystem, with participants who play roles in EMV issuance, acceptance and transaction processes. Clicking on one of the participants takes you to a page for that ecosystem participant with a description of the participant’s roles, example organizations that play these roles, and key links with other ecosystem participants. - Click NEXT to proceed Copyright © 2013 Smart Card Alliance

4 EMV Ecosystem Participants
Exit Acceptance and Transactions Chip Suppliers Inlay Manufacturers Issuance Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Personalization Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Click on an EMV ecosystem participant to proceed Education & Training Industry Organizations Education & Training Industry Organizations [Please select the EMV ecosystem participant to learn more] Copyright © 2013 Smart Card Alliance

5 Issuance Process: Issuers
Role Provide payment devices (cards) to customers and manage payment transactions Educate and train cardholders Can also play the role of issuer processor Examples Bank of America Chase Silicon Valley Bank State Employees Credit Union Travelex UNFCU Wells Fargo Key Links with other Participants Cardholders Payment networks Card manufacturers Standards bodies Industry organizations Issuance Retail System Integrators Value-Added Resellers Chip Suppliers Inlay Manufacturers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Issuers

6 Issuance Process: Payment Networks
Acceptance and Transactions Issuance Retail System Integrators Value-Added Resellers Role Create specifications to ensure the highest level of secure payment transactions and interoperability Operate networks for routing transactions from processors to issuers Operate “on-behalf-of” (or early data) services for issuers to support EMV migration Examples American Express Discover MasterCard Visa Regional debit networks (e.g., NYCE, PULSE, SHAZAM, STAR) Key Links with other Participants All Chip Suppliers Inlay Manufacturers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Payment Networks

7 Issuance Process: Chip Suppliers
Acceptance and Transactions Role Design, manufacture and provide ICs which are integrated on inlays and/or cards Normally will load the operating system (OS) of the chip Examples Infineon Technologies INSIDE Secure NXP Semiconductors Samsung Sony STMicroelectronics Key Links with other Participants Inlay manufacturers Very large card manufacturers (with card integration plants) Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Chip Suppliers

8 Issuance Process: Inlay Manufacturers
Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Role Provide card manufacturers with a durable and convenient solution for the manufacturing of the finished cards May or may not load the OS of the chip Examples HID Global Smartrac SPS (Smart Packaging Solutions) Key Links with other Participants Card manufacturers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Inlay Manufacturers

9 Issuance Process: Card Manufacturers
Acceptance and Transactions Role Produce smart cards from sheets Load the applications Test the cards for quality issues Package, ship and distribute the cards to personalization bureau Examples CPI Card Group Gemalto Giesecke & Devrient Morpho Cards Oberthur Technologies Perfect Plastic Printing VCT Watchdata Key Links with other Participants Chip suppliers Inlay manufacturers Issuers Standards bodies (EMVCo) Personalization bureaus Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Card Manufacturers

10 Application Providers (EMV)
Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Role Payment (network) schemes that create product-specific specifications and applications and provide/license applications to issuers through card manufacturers to comply with EMVCo specifications Examples American Express AEIPS, ExpressPay Discover D-PAS Interac MasterCard M/Chip, PayPass M/Chip Visa VSDC, payWave qVSDC Key Links with other Participants Card manufacturers Issuers Standards bodies (EMVCo) Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Application Providers

11 Issuance Process: Issuer Processors
Role Entities that facilitate card issuance activities on behalf of an issuer such as card enrollment, preparing and sending the card personalization information to the card vendor, and maintaining the cardholder database. The issuer processor may provide only card issuing activities or may provide other ancillary services as well (e.g., web front-end administrative and cardholder account management applications, customer service, settlement and clearing, chargeback processing) Examples First Data FIS Fiserv FSV TSYS Self-processing issuers Key Links with other Participants Issuers Program managers Card manufacturers Personalization bureaus Payment networks Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Issuer Processors

12 Issuance Process: Program Managers
Role Typically associated with prepaid card programs, program managers sit between the issuer and the customer and manage most aspects of a co-branded/affinity card program, including marketing and distribution, and either provide or maintain relationships with third-parties for other functions (e.g., transaction processing, websites, call center). The program manager role is not as common for credit and debit card programs but does exist (see the example of the ICBA’s Bancard which offers a turnkey credit card solution for agent community banks through its issuing bank TCM Bank). Also known as Group Service Providers / Member Service Providers for credit/debit cards. Examples Card Services for Credit Unions (CSCU) CO-OP Network Independent Community Bankers of America (ICBA) Prepaid program managers (e.g., GreenDot, NetSpend) Key Links with other Participants Issuers Personalization bureaus Card manufacturers Payment networks Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Program Managers

13 Data Preparation & Lifecycle Management
Acceptance and Transactions Role Software used to enhance card management systems to support cryptographic and application data for EMV Services that prepare data for EMV personalization including calculation of card verification values and/or management of keys Services that prepare scripts to make updates to cards (e.g., PIN, risk parameters, suspend) at ATMs or POS terminals Examples All card and personalization bureaus Software providers: Datacard Service providers: Bell ID Cryptomathic First Data FIS Fiserv Gemalto Giesecke & Devrient Oberthur Technologies Thales Key Links with other Participants Issuers Personalization bureaus Issuer processors Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Data Preparation & Lifecycle Management

14 Personalization (Perso) Bureaus
Role Provide personalization services Data preparation Configuration set-up Fulfillment of personalized chip card, with all paper inserts; preparation for mailing to customer Partner with issuers to: Define card profile, including risk parameters Receive and manage card records and keys to form a personalization record Generate personalization script Perform key management activities for EMV, CVV/CVC, and PINs between card manufacturer and personalization bureau and between issuer and personalization bureau Examples CPI Card Group First Data FIS Fiserv Key Links with other Participants Issuers Issuer processors Card manufacturers Payment networks Standards bodies Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Gemalto Giesecke Devrient Oberthur Technologies TSYS Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Application providers Data preparation Consultants Certification bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Personalization Bureaus

15 Issuance Process: Consultants
Role Provide technical and business expertise in deploying EMV technology Share global experience and knowledge in all aspects of EMV issuance - from card platforms, to EMV payment applications, key management, configuration, data preparation, personalization and transaction processing Provide training Examples EMV software providers: Barnes, Bell ID, Consult Hyperion, ICC Solutions, UL Transaction Security Payment brands: American Express, Discover, MasterCard, Visa Technology providers: Accenture, Gemalto, Giesecke & Devrient, Morpho Cards, NXP Semiconductors, Oberthur Technologies Consulting firms: Accenture, FIME, independent consultants Key Links with other Participants Standards bodies Card manufacturers Issuers Payment networks Application providers Data preparation Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Personalization bureaus Issuer processors Regulatory bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Consultants

16 Issuance Process: Distribution Points
Role Deliver personalized EMV payment cards and/or credentials to consumers Direct mail through centralized issuance Mass delivery through centralized issuance – debit, prepaid reloadable Instant issuance – issuer branch, kiosks, unattended automated issuance Over the air – mobile device payment credential delivery Need certification for EMV cards vs. mag stripe cards Examples Direct mail: USPS, courier service Bulk issuance: bank branches, retail stores Instant issuance: bank branches; public areas (e.g., retail locations, airports, special events) Key Links with other Participants Standards bodies Card manufacturers Application providers Data preparation Certification bodies Issuers Cardholders Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Distribution Points

17 Issuance Process: Standards Bodies
Role Ensure physical and logical global interoperability of EMV capable devices and systems: cards, mobile devices, POS systems, ATMs, acquiring networks, issuer host systems Examples ISO – ISO/IEC primary standard for smart cards; ISO/IEC for contactless smart cards EMVCo – payment specifications (security, functionality, interoperability) GlobalPlatform – cross-industry standards and specifications layering payment security and functional requirements over the standards in non-payment telecommunication and identification industry Key Links with other Participants Chip manufacturers Card manufacturers Issuers Payment networks Personalization bureaus Issuer processors Education and training Consultants Application providers Data preparation Card type approval Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Standards Bodies

18 Issuance Process: Regulatory Bodies
Role Public authority or government agency responsible for unbiased authority over some area of human activity. For EMV, bank, consumer protection and financial regulatory bodies may be involved. Examples No regulatory body is governing EMV at this point. Key Links with other Participants Not applicable Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Regulatory Bodies

19 Issuance Process: Card Type Approval
Role Smart card products EMVCo certifies the hardware security of the chip. The chip manufacturer obtains the certification from EMVCo. The card/chip module supplier is responsible for obtaining certification from the payment brands for the software (OS and payment application) implementation. The payment brands have an established multi-tier certification process setting the requirements and using the services of accredited test labs to perform the testing to ensure compliance. Payment application configuration and personalization Payment brands perform certification/testing of the final configured products before the issuer can start mass issuance. The purpose of this testing is to ensure domestic and international interoperability. Issuer is responsible for obtaining personalization certification from the payment brands but may use the assistance of the entity consulting with the issuer for the configuration and/or performing the personalization. Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions Click to continue * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Card Type Approval

20 Issuance Process: Card Type Approval
Acceptance and Transactions Examples EMVCo Payment brands Test laboratories: card type approval (see current list on EMVCo web site) Applus+ LGAI Technological Center S.A. (Spain) CETECOM ICT Services GmbH (Germany) Deutscher Sparkassenverlag (Germany) FIME Europe Test Centre (France) FIME Asia Test Centre (Taiwan, ROC) ICT Korea Co., Ltd. (Korea) RFI Global Services (United Kingdom) TUV SUD Japan Ltd. (Japan) Key Links with other Participants Chip manufacturers Card/chip module manufacturers Accredited test labs Issuers Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Card Type Approval

21 Issuance Process: Education & Training
Role Education for issuer employees on technology, infrastructure, customer service and other topics to support EMV migration Examples See categories for examples. Payment brands Consultants Card manufacturers Processors Industry organizations Standards bodies Key Links with other Participants Issuers Issuer processors Program managers Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Education & Training

22 Industry Organizations
Role Education for issuers and merchants Facilitation of discussion of EMV migration Government advocacy Industry conferences and networking Examples ATM Industry Association Electronic Transactions Association (ETA) EMV Migration Forum Merchant Advisory Group (MAG) National Retail Federation (NRF) Smart Card Alliance Key Links with other Participants All other categories Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Issuance Process: Industry Organizations

23 Acceptance and Transaction Process: Merchants
Role Accept EMV cards using payment applications In physical and virtual, online and offline locations That support an array of contact and contactless card types and form factors Add value to point-of-purchase through: Consumer engagement (loyalty / frequency / geolocation programs) Enlightened use of social media that targets consumer preferences Provide cardholder education and training Examples 7-Eleven BestBuy JambaJuice JCPenney McDonald’s Shell Oil Walgreens Walmart Key Links with other Participants POS terminal vendors Retail systems integrators Acquirers Acquirer processors ISOs Value-added solution providers Payment networks Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Merchants

24 Acceptance and Transaction Process: POS Terminal Vendors
Acceptance and Transactions Role Provide standalone POS terminals and integrated EMV card readers Create EMV-compliant hardware and operating system platforms Maintain GlobalPlatform standards Support single and multiple data elements Examples Castles Technology Equinox Ingenico OTI VeriFone Key Links with other Participants Merchants Retail systems suppliers ISOs Acquirers Acquirer processors Standards bodies (EMVCo) Certification bodies Payment networks Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: POS Terminal Vendors

25 Retail System Integrators
Acceptance and Transactions Role Facilitate interoperability among devices and payment card schemes Maintain GlobalPlatform standards Create infrastructure for payment card processing and ancillary services (e.g., loyalty, authentication, inventory management) Examples Accenture Cubic IBM Radiant Technologies Key Links with other Participants Merchants POS terminal vendors Acquirers Acquirer processors ISOs Payment networks Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Retail System Integrators

26 Acceptance and Transaction Process: Acquirers
Role A payment network member responsible for signing merchants, acquiring transaction data and ensuring that merchants are paid, including: Underwriting merchants to accept network-branded cards Acquiring transaction data from merchants Providing the means to authorize valid transactions Facilitating transaction clearing and settlement with timely delivery of payment card revenue to merchants minus interchange and related service fees Managing risk, exceptions, refunds and disputes Examples Bank of America Chase Paymentech Wells Fargo Key Links with other Participants Merchants POS terminal vendors Retail systems integrators ISOs Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Acquirers

27 Acceptance and Transaction Process: Acquirer Processors
Role Entities that process transactions on behalf of acquirers by connecting merchant transactions to payment networks by:  Providing the POS device Securely routing transaction from POS device through POS payment gateway to payment network Managing transactions from authorization to clearing to settlement Examples Chase Paymentech Elavon First Data Global Payment Systems Heartland Payment Systems RBS WorldPay (Royal Bank of Scotland) TSYS Key Links with other Participants POS terminal vendors Acquirers ISOs Payment networks Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Acquirer Processors

28 Acquiring Payment Gateways
Role Facilitate payment transactions between merchants and processors Securely route transactions from merchant POS devices or other end-points to acquirer processors Provide many-to-many connectivity between point of use applications and processors Provide value-added payment products and services to merchants, ISOs, and other players Examples Apriva Authorize.net eProcessing IP Commerce iPayments PayWare Connect TNS Key Links with other Participants Acquirer processors Acquirers ISOs POS terminal vendors Merchants Consultants Standards bodies Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Acquiring Payment Gateways

29 Acceptance and Transaction Process: ISOs
Role Third-party resellers of an acquiring processor’s services ISOs must be aware of and communicate and educate the changes to their merchant account clients. ISOs often provide the POS terminal for small and medium-sized businesses and will need to work with the merchant to replace the existing terminals with EMV-capable terminals. Not unique to EMV, ISOs, along with acquiring banks, assume much of the liability and risk as they underwrite the merchants. Examples There are thousands of ISOs representing acquirer processors; no single ISO is of significant size. Key Links with other Participants Acquirer processors Merchants Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: ISOs

30 Acceptance and Transaction Process: Payment Networks
Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Role Act as network processor and switch for credit and debit transactions Provide applications for contact and contactless Operate networks for routing transactions from processors to issuers May operate “on-behalf-of” (or early data) services for issuers to support EMV migration May serve as issuer processor Examples (Credit and/or Debit) American Express Discover JCB MasterCard NYCE PULSE SHAZAM STAR Visa Other regional debit networks Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions Click to continue * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Payment Networks

31 Acceptance and Transaction Process: Payment Networks
Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Key Links with other Participants Acquirers Acquirer processors (indirectly through acquirer member of which the processor is a member service provider) Issuer processors Issuer payment gateways Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Payment Networks

32 Value-Added Resellers
Role Not ISOs, but entities that provide POS software/hardware to various merchant categories (e.g., the food service industry, hospitality industry) Developers of custom POS software solutions that read track data, form the authorization request and send it to the acquirer/processor Interface can be with developer’s POS system or another supplier’s. Examples ACI Apple Micros IBM NCR Oracle Wincor Nixdorf Key Links with other Participants Acquirers Merchants ISOs POS terminal suppliers Acquiring gateways Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Value-Added Resellers

33 Acceptance and Transaction Process: Issuers
Issuers (Acceptance) Role A financial institution that issues a customer account that is tied to network-branded EMV card and/or payment device – credit, debit or prepaid. Very few issuers self-process but rely instead on third-party processors and card personalization bureaus. If self-processing, must be sure that its processing software supports authorization request responses for EMV originated transactions Examples Many banks are in the process of issuing EMV cards. Eventually all issuers will convert to EMV as more and more merchants convert. Key Links with other Participants Issuer processors Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Issuers

34 Acceptance and Transaction Process: Issuer Processors
Role Facilitates the response to the authorization request from the merchant on behalf of the issuer Examples First Data FIS Fiserv FSV Prepaid Galileo Prepaid TSYS Key Links with other Participants Issuers Payment networks Merchants Acquirers Acquirer processors Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Issuer Processors

35 Issuer Payment Gateways
Role Conduit from the card network to the issuer processor where a third party processor is involved in a prepaid card program Ensure third party issuer processor acquires appropriate responses from both ends during an authorization request Securely route transactions from card network to the issuing platform (issuer processor or issuer) Role can be as an independent gateway or can be offered by the issuer processor American Express is excluded from this as they do not allow third parties to program manage or issue cards Examples eFunds/FIS Star Processing Inc. U.S. Bancorp Key Links with other Participants Payment networks Issuers Issuer processors Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Issuing Payment Gateways

36 Acceptance and Transaction Process: Consultants
Role Provide technical and business expertise in deploying EMV technology Share global experience and knowledge in all aspects of EMV acceptance - from POS EMV kernel to payment transaction messaging, issuer scripting and EMV host transaction processing Examples EMV software/tools providers: Barnes, ICC Solutions, UL Transaction Security Payment brands: American Express, Discover, MasterCard, Visa Technology providers: POS and ATM vendors Consulting firms: FIME, freelance consultants Key Links with other Participants Merchants Retail systems integrators Acquirers Acquirer processors Payment networks Issuer processors Issuers Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Consultants

37 Acceptance and Transaction Process: Standards Bodies
Role Ensure physical and logical global interoperability of EMV capable devices and systems: cards, mobile devices, POS systems, ATMs, acquiring networks, issuer host systems Examples ISO – ISO/IEC primary standard for smart cards, ISO/IEC for contactless smart cards EMVCo – payment specifications (security, messaging, interoperability) GlobalPlatform – messaging specifications, key management Key Links with other Participants Merchants POS terminal vendors Retail systems integrators Acquirers Acquirer processors Issuer processors Issuers ATM suppliers Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Standards Bodies

38 Terminal Type Approval
Role Perform Level 1 and Level 2 testing and approval of POS devices Perform additional brand-specific contactless testing of POS devices Examples EMVCo American Express, Discover, MasterCard, Visa Testing laboratories: terminal type approval (see current list on EMVCo web site) Applus+ LGAI Technological Center S.A. (Spain) Beijin Unionpay Card Technology Co., Ltd (China) CETECOM ICT Services GmbH (Germany) CETECOM MOVON Ltd (Korea) ELITT (France) FIME Europe Test Centre (France) FIME Asia Test Centre (Taiwan, ROC) ICT Korea Co., Ltd. (Korea) RFI Global Services (UK) TUV SUD Japan Ltd. (Japan) TUV SUD Product Service Ltd (UK) VOB-ZKD (Germany) Key Links with other Participants Merchants POS terminal vendors Acquirers Acquirer processors Accredited test labs Payment networks Standards bodies Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Terminal Type Approval

39 Acceptance and Transaction Process: Industry Organization
Education & Training Role Education for merchants, ISOs, acquirer processors and others on technology, infrastructure, customer service and other topics to support EMV migration Examples See categories for examples Payment brands Consultants Processors POS terminal vendors Retail systems integrators Industry organizations Key Links with other Participants All other categories Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Industry Organization

40 Industry Organizations
Role Education for issuers and merchants Facilitation of discussion of EMV migration Government advocacy Industry conferences and networking Examples ATM Industry Association Electronic Transactions Association (ETA) EMV Migration Forum Merchant Advisory Group (MAG) National Retail Federation (NRF) Smart Card Alliance Key Links with other Participants All other categories Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: Industry Organizations

41 Acceptance and Transaction Process: ATM Suppliers
Role Upgrade of ATM terminals to support contact and/or contactless EMV chip transactions Both hardware and software must be certified for EMV acceptance Examples Diebold Fujitsu NCR Tidel Triton Wincor-Nixdorf Key Links with other Participants ATM operators Certification bodies Payment networks (debit) Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: ATM Suppliers

42 Acceptance and Transaction Process: ATM Operators
Acceptance and Transactions Issuance Chip Suppliers Inlay Manufacturers Retail System Integrators Value-Added Resellers Role Responsible for contracting with ATM suppliers to provide an EMV-compliant ATM terminal Provide consumers with ability to do banking activities Examples Financial institutions Independent operators (e.g., Cardtronics) Key Links with other Participants Cardholders ATM suppliers Payment networks (debit) Card Type Approval Terminal Type Approval Application Providers Card Manufacturers POS Terminal Vendors ISOs Cardholder ATM Suppliers Data Prep & Lifecycle Management Distribution Points Issuer Processors Issuers Acquirers Acquirer Processors Perso Bureaus Program Managers Regulatory Bodies Issuer Processors Issuer Payment Gateways Acquiring Payment Gateways Consultants Standards Bodies Consultants Standards Bodies Education & Training Industry Organizations Education & Training Industry Organiza-tions * Key stakeholder linkages are indicated as non-gray boxes Acceptance and Transaction Process: ATM Operators

43 Smart Card Alliance About the Smart Card Alliance
Click to continue About the Smart Card Alliance The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology. The Alliance invests heavily in education on the appropriate uses of technology for identification, payment and other applications and strongly advocates the use of smart card technology in a way that protects privacy and enhances data security and integrity. Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart card technology, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. Smart Card Alliance Payments Council Member Contributors Special thanks go to Dori Skelding, Chase Card Services, who led this project. Member contributors included:

44 Smart Card Alliance About the Payments Council
The Smart Card Alliance Payments Council focuses on facilitating the adoption of chip-enabled payments and payment applications in the U.S. through education programs for consumers, merchants, issuers, acquirers/processors, government regulators, mobile telecommunications providers and payments service providers. The group brings together payments industry stakeholders, including payments industry leaders, merchants and suppliers, and works on projects related to implementing EMV, contactless payments, NFC-enabled payments and applications, mobile payments, and chip-enabled e-commerce. The Council’s primary goal is to inform and educate the market about the value of chip-enabled payments in improving the security of the payments infrastructure and in enhancing the value of payments and payment-related applications for industry stakeholders. Council participation is open to any Smart Card Alliance member who wishes to contribute to the Council projects. Copyright Notice Copyright © 2013 Smart Card Alliance, Inc. All rights reserved. Reproduction or distribution of this publication in any form is forbidden without prior permission from the Smart Card Alliance. The Smart Card Alliance has used best efforts to ensure, but cannot guarantee, that the information described in this report is accurate as of the publication date. The Smart Card Alliance disclaims all warranties as to the accuracy, completeness or adequacy of information in this report. This resource does not endorse any specific product or service.  Product or service references are provided to illustrate the points being made. The EMV ecosystem described in this resource is based upon Smart Card Alliance Payments Council research and analysis as of publication time. Any changes or updates will be communicated in future publications on the EMV Connection web site (http://www.emv-connection.com), as needed. Trademark Notice All registered trademarks, trademarks, or service marks are the property of their respective owners.


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