1. Terminal Quality Management Overview 2010

2. Agenda Scope Requirements Benefits Process
Recommendations for TQM implementation
Fees
Contact

3. TQM scope overview Scope Requirements
Relevant devices: Terminal Level 1 Components - for contact: InterFace Modules (IFMs) - for contactless: Proximity Coupling Devices ( PCDs)
Relevant Vendors: Vendors developing products embedding an IFM or a PCD
Requirements
Same structure as ISO 9001
Focus on configuration management
Methodology Based on assessment of questionnaires with surveillance by audits.

4. TQM scope - EMV Level 1 Vs Level 2
OSI Model
EMV Specifications
Product Components
7 Application
Level 2
Level 2 Component =
Application
6 Presentation
5 Session
4 Transport
Level 1 Component =
IFM for contact Or
PCD for contactless
3 Network layer
Level 1
2 Data link layer
The part of the testing process which is concerned by TQM is the interoperability testing.
The Terminal functionalities required to obtain Card-Terminal interoperability are described in the EMV specifications. These specifications are structured following the OSI layers model. [Click on the indicator to show the separation between level 1 and level 2]
The communication layers are divided in two parts in the EMV specifications. The Level 1 and the Level 2. Level 1 handles communication from the physical layer to the transport layer whereas Level 2 handles communication from the session layer to the application layer.
TQM and the Terminal Type approval level 1 sub-processes focus only on the Level 1 functionality.
1 Physical layer
TQM only focuses on Level 1 Component (s)

5. TQM scope - Product Configurations in the field
Terminal
PCD/IFM
Level 1
Level 2 •
Fully Integrated Terminal
Terminal
Card Reader •
Terminal and
PCD/IFM
Intelligent Card Reader
Level 1
Level 2
This slide explains the three different Product configurations that can be found in the field.
[Click on the indicator to show the first Product configuration]
Fully Integrated Terminal: PCD – or IFM for contact products- is fully embedded within the terminal covering also Level 2 requirements.
[Click on the indicator to show the second Product configuration]
Terminal and Intelligent Card Reader: PCD- or IFM- is embedded in a stand-alone card reader connected to the terminal with the card reader covering all Level 1 and Level 2 requirements.
[Click on the indicator to show the third Product configuration]
Terminal and Transparent Card Reader: PCD – or IFM- is embedded in a stand-alone card reader connected to the terminal with the reader only covering Level 1 requirements and the terminal part covers the Level 2 requirements. •
Terminal and
Terminal
Card Reader
Transparent Card Reader
PCD/IFM
Level 1
Level 2
= Products subject to TQM
PCD =
Proximity
Coupling Device
IFM = InterFace Module

6. TQM scope - Terminal Type Approval Level 1
Terminal Type Approval Level 1 testing
TTA L1 Success
Terminal
Level 1
Valid only for the tested sample:
Specific Level 1 component containing specific HW + SW
Embedded in specific product (s)
Is compliant with the relevant specification
One sample
Prototype/ Pre-series
The vendor has been able ONCE
to develop ONE compliant product configuration

7. TQM scope - Terminal Level 1 within a Product
A change in one of these parts may impact the PCD/IFM functionality
Level 1 component: PCD or IFM
The PCD or IFM is the combination of software and hardware responsible for the EMV specifications compliance.
But to work properly, the PCD/IFM must be provided with a correct working environment by the Product in which it is embedded. Let’s call the Product subpart responsible for this correct working environment, the PCD/IFM interface.
The compliance to EMV Specifications depends on the PCD/IFM itself but also on the Product in which it is embedded.
Level 1 Component interface
Product
Part without impact on PCD/IFM functionality

8. TQM scope - EMVco policy on changes
Major change does require new Type Approval
Vendor is responsible for assessing whether the change is minor or major and for demonstrating to the Acquirer that the change is minor.
Source EMVco bulletin 11

9. TQM requirements
TQM requires the vendor to have implemented a Configuration Management System ensuring that:
The identification of the PCD/IFM and the PCD/IFM interface is sufficient and allows efficient impact analysis of changes on EMV compliance
Appropriate processes are implemented to control and improve the Product configuration management from R&D to maintenance.

10. TQM requirements - Configuration management
MasterCard needs to be confident that:
Product configuration is controlled by the Vendor
Identified
Recorded
Checked
Impact of changes is assessed
Subsequent unauthorized alterations are prevented (guidelines for maintenance, process for information release to manufacturing sites, etc..)
That is the TQM purpose

11. TQM added value
A TQM Label gives confidence that products are compliant with level 1 spec.
products manufactured in volume,
products which embed an approved IFM or PCD, but different from the tested model,
products which embed an updated version of an approved IFM or PCD,

12. Benefits For the Acquirer
Vendor change management is reliable and takes into account EMVCo change policy
Configuration management of the products will be controlled and continuously improved by the vendor .
Interoperability issues will be managed following a controlled process by the vendor.
For the Vendor
A means to demonstrate to Acquirers that changes done on their products are only minor changes.
Allow more design flexibility with less cost for approvals.
Give a marketing advantage.

13. TQM process - Overview Subcontracted to Assessment Body Renewal
Mandatory process
Conditional process
Vendor Registration
with Assessment Body
Subcontracted to Assessment Body
Product Registration
Renewal
Completion of TQM Questionnaires
TQM Compliance Assessment
TQM Audit
Test of Product Samples
TQM Label Recommendation and Preparation
MasterCard
TQM Label
TQM Label Granting by MasterCard

14. TQM process - Outsourcing
MasterCard has arranged for its Terminal Quality Management scheme to be administered by TÜV Product Service.
From now on, the TQM primary contact is:
Mr Dale WHITAKER
All your requests for registration, product plan number, documentation, granting of labels, TQM project management, etc. should be sent directly to

15. TQM process - Product registration
Objective
Identification of each Vendors IFMs or PCDs requiring a TQM label.
Agreement on submission timescale
Key Steps
Vendor completes an Application Form listing all IFMs/PCDs that need a TQM label) and proposes dates for submission of TQM Questionnaires.
Assessment Body confirms the schedule or agrees with the Vendor on a modified schedule.
Assessment Body assigns a TQM Project Plan number for each PCD or IFM that needs one.
Outcome
Acknowledgement granted by granting of Project Plan number*.
( * formerly called action plan number)

16. TQM process - TQM is not required for
Terminals not subject to TIP, (Terminal Integration Process)
End-of-life products (no longer being manufactured)

17. TQM process - Questionnaires
Vendor Organizational Description
(VOD)
Valid whatever the PCD or IFM
Objectives:
Configuration Management System description
Identification of organizational changes done after last assessment
Corrective actions follow up,
Type Identification Description
(TID)
Specific to one PCD or to one IFM
Objectives:
Description of the TTA L1 tested configuration
Description of all the PCD/IFM “evolutions”
Description of all the PCD/IFM implementations within products
Identification of product changes done after last assessment
Corrective actions follow up,
Based on self-assessment

18. TQM process - Recommendation to MasterCard
Objective
The assessment body to make a recommendation to MasterCard concerning the TQM Label* granting
Key Steps
Assessment Body send to MasterCard:
The list of IFMs/PCDs involved in the TQM project
A management summary of the TQM project
The final audit report(s), if any
A recommendation for the granting of TQM label(s).
*Note that “TQM Label” means a unique reference allocated to an IFM/PCD following MasterCard’s acceptance of the TQM recommendation. Vendors will receive a “Statement of Compliance” listing all their TQM Labels. A physical label is not required to be attached to a terminal.

19. Recommendations for TQM implementation:
Keep written documentation simple
No need for translation into English
Shorter is better
Just improve existing documentation when needed
Use existing processes
Just improve existing process when needed
Use existing tools

20. TQM pricing for EMV Contact and PayPass services
Amounts in EUR
Initial Fee
Annual Renewal Fee
Fee 1
TQM Program Fee (Note 1)
6 500 €
3 500 €
Fee 2
Per additional VOD
2 000 €
1 000 €
Fee 3
Per additional TID
1 250 €
800 €
Fee 4
Per additional Manufacturing Site
Fee 5
Audit
Defined by TUV-PS
Delivered by TÜV Product Service
Note 1: Vendor Registration + 1 or 2 VODs + First TID

21. Contact TQM assessment body contact: tqmtuv@tuvps.co.uk
MasterCard contact (for escalation purpose only):