2Agenda Scope Requirements Benefits Process Recommendations for TQM implementationFeesContact
3TQM 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 PCDRequirementsSame structure as ISO 9001Focus on configuration managementMethodology Based on assessment of questionnaires with surveillance by audits.
4TQM scope - EMV Level 1 Vs Level 2 OSI ModelEMV SpecificationsProduct Components7 ApplicationLevel 2Level 2 Component=Application6 Presentation5 Session4 TransportLevel 1 Component=IFM for contactOrPCD for contactless3 Network layerLevel 12 Data link layerThe 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 layerTQM only focuses on Level 1 Component (s)
5TQM scope - Product Configurations in the field TerminalPCD/IFMLevel 1Level2•Fully Integrated TerminalTerminalCard Reader•Terminal andPCD/IFMIntelligent Card ReaderLevel1Level2This 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 andTerminalCard ReaderTransparent Card ReaderPCD/IFMLevel1Level2= Products subject to TQMPCD =ProximityCoupling DeviceIFM = InterFace Module
6TQM scope - Terminal Type Approval Level 1 Terminal Type Approval Level 1 testingTTA L1 SuccessTerminalLevel 1Valid only for the tested sample:Specific Level 1 component containing specific HW + SWEmbedded in specific product (s)Is compliant with the relevant specificationOne samplePrototype/ Pre-seriesThe vendor has been able ONCEto develop ONE compliant product configuration
7TQM scope - Terminal Level 1 within a Product A change in one of these parts may impact the PCD/IFM functionalityLevel 1 component: PCD or IFMThe 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 interfaceProductPart without impact on PCD/IFM functionality
8TQM scope - EMVco policy on changes Major change does require new Type ApprovalVendor 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
9TQM requirementsTQM 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 complianceAppropriate processes are implemented to control and improve the Product configuration management from R&D to maintenance.
10TQM requirements - Configuration management MasterCard needs to be confident that:Product configuration is controlled by the VendorIdentifiedRecordedCheckedImpact of changes is assessedSubsequent unauthorized alterations are prevented (guidelines for maintenance, process for information release to manufacturing sites, etc..)That is the TQM purpose
11TQM added valueA 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,
12Benefits For the Acquirer Vendor change management is reliable and takes into account EMVCo change policyConfiguration 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 VendorA 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.
13TQM process - Overview Subcontracted to Assessment Body Renewal Mandatory processConditional processVendor Registrationwith Assessment BodySubcontracted to Assessment BodyProduct RegistrationRenewalCompletion of TQM QuestionnairesTQM Compliance AssessmentTQM AuditTest of Product SamplesTQM Label Recommendation and PreparationMasterCardTQM LabelTQM Label Granting by MasterCard
14TQM 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 WHITAKERAll your requests for registration, product plan number, documentation, granting of labels, TQM project management, etc. should be sent directly to
15TQM process - Product registration ObjectiveIdentification of each Vendors IFMs or PCDs requiring a TQM label.Agreement on submission timescaleKey StepsVendor 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.OutcomeAcknowledgement granted by granting of Project Plan number*.( * formerly called action plan number)
16TQM process - TQM is not required for Terminals not subject to TIP, (Terminal Integration Process)End-of-life products (no longer being manufactured)
17TQM process - Questionnaires Vendor Organizational Description(VOD)Valid whatever the PCD or IFMObjectives:Configuration Management System descriptionIdentification of organizational changes done after last assessmentCorrective actions follow up,Type Identification Description(TID)Specific to one PCD or to one IFMObjectives:Description of the TTA L1 tested configurationDescription of all the PCD/IFM “evolutions”Description of all the PCD/IFM implementations within productsIdentification of product changes done after last assessmentCorrective actions follow up,Based on self-assessment
18TQM process - Recommendation to MasterCard ObjectiveThe assessment body to make a recommendation to MasterCard concerning the TQM Label* grantingKey StepsAssessment Body send to MasterCard:The list of IFMs/PCDs involved in the TQM projectA management summary of the TQM projectThe final audit report(s), if anyA 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.
19Recommendations for TQM implementation: Keep written documentation simpleNo need for translation into EnglishShorter is betterJust improve existing documentation when neededUse existing processesJust improve existing process when neededUse existing tools
20TQM pricing for EMV Contact and PayPass services Amounts in EURInitial FeeAnnual Renewal FeeFee 1TQM Program Fee (Note 1)6 500 €3 500 €Fee 2Per additional VOD2 000 €1 000 €Fee 3Per additional TID1 250 €800 €Fee 4Per additional Manufacturing SiteFee 5AuditDefined by TUV-PSDelivered by TÜV Product ServiceNote 1: Vendor Registration + 1 or 2 VODs + First TID