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EMV chip and pin the business case. What is EMV? New Standard in “Chip Card” Technologies Replacing Magnetic Strip Cards New Standard in “Chip Card” Technologies.

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Presentation on theme: "EMV chip and pin the business case. What is EMV? New Standard in “Chip Card” Technologies Replacing Magnetic Strip Cards New Standard in “Chip Card” Technologies."— Presentation transcript:

1 EMV chip and pin the business case

2 What is EMV? New Standard in “Chip Card” Technologies Replacing Magnetic Strip Cards New Standard in “Chip Card” Technologies Replacing Magnetic Strip Cards Originally devised by Europay, Mastercard and Visa Originally devised by Europay, Mastercard and Visa 100 Countries in 2004 using the technology 100 Countries in 2004 using the technology

3 What is Chip and Pin? An initiative to implement the EMV standard for secure payments in the U.K. An initiative to implement the EMV standard for secure payments in the U.K. Tested in Northampton in May 2003 Tested in Northampton in May 2003 Rolled out in 2004 Rolled out in 2004 Mandatory from January 2005 Mandatory from January 2005

4 What are Magnetic stripe Cards? Card Capable of storing data on a Magnetic Stripe Card Capable of storing data on a Magnetic Stripe The first modern charge card was issued by Diner's Club in 1950 The first modern charge card was issued by Diner's Club in 1950 Can be more easily copied Can be more easily copied Magstripe can be damaged over time Magstripe can be damaged over time

5 Credit Card Fraud…Some Facts Fraud costing the industry over £400million a year in 2002 Fraud costing the industry over £400million a year in 2002 Several Fraud Techniques commonly used: Several Fraud Techniques commonly used: 1. Skimming 2. Shoulder Surfing 3. Card Trapping

6 Some Statistics…

7 How it Works The System Utilises Two-factor authentication The System Utilises Two-factor authentication Card read by portable or connected console Card read by portable or connected console Transaction Authorised with end users PIN instead of a signature Transaction Authorised with end users PIN instead of a signature

8 The Pro’s…To the Banks Decreased liability for banks Decreased liability for banks Reduced costs in authorisation calls Reduced costs in authorisation calls Security against counterfeit or ‘skimmed’ magnetic stripe cards Security against counterfeit or ‘skimmed’ magnetic stripe cards Generally lower risks due to PIN Verification Generally lower risks due to PIN Verification Protection against organised crime Protection against organised crime

9 The Pro’s…To the Consumer Able to be present during card authorisation Able to be present during card authorisation Improved customer experience at the point-of sale Improved customer experience at the point-of sale Faster Authorisation Faster Authorisation More Piece of mind More Piece of mind

10 The Pro’s…To the Merchant Possibility of reduced bank charges and charge-backs Possibility of reduced bank charges and charge-backs Insulates retailers from effects of fraud liability shift Insulates retailers from effects of fraud liability shift Increased sales conversion and improved efficiency due to authorization speed Increased sales conversion and improved efficiency due to authorization speed Less paperwork (Receipts) Less paperwork (Receipts)

11 The Cons…”Chip and Spin” Higher Risk of Cross-country boarder fraud Higher Risk of Cross-country boarder fraud “Shoulder Surfing” PIN Stealing “Shoulder Surfing” PIN Stealing Liability of Consumer to Keep their PIN safe Liability of Consumer to Keep their PIN safe

12 References WIKIPEDIA.ORG DATACASH.COM CHIPANDSPIN.CO.UK Chip and Spin Ross Anderson, Mike Bond, and Steven J. Murdoch Computer Laboratory, University of Cambridge. PIN (& Chip) or signature – beating the cheating? Dan Cvrcek, Jan Krhovjak, Vashek Matyas Masaryk University in Brno, Faculty of Informatics PINPAD.CO.UK Secure solution for EMV chip card acceptance and PIN entry at point-of-sale CARDWATCH.ORG.UK


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