2. R U Ready? V M E EUROPAY MASTERCARD VISA EMVco was formed in 1999.
They are responsible for type approval processes-terminal compliance; Common Core Definitions (CCD), Common Payment Application (CPA) card testing to ensure a single interface for issuers/manufacturers.
Global, interoperable standard for secure payment cards using chip technology.
EMV:

3. EMV is COMING to America
EMV is no longer just a “Maybe” or “Someday” …
EMV is COMING to America
NOW

4. All card brands have released plans for EMV adoption in the USA.

5. MasterCard Liability Shift – October 1, 2015
Issued a roadmap to EMV in January 2012 to align all industry groups in the implementation of EMV.
MasterCard Liability Shift – October 1, 2015
In August, announced a roadmap to accelerate EMV migration in contactless and contact chip technology. Visa Liability Shift – October 1, 2015
In July, announced a roadmap to advance EMV chips for all merchants, processors and issuers.
Amex Liability Shift
October 1, 2015
The brands are all on board in the push to get EMV going in the USA. They’ve established Roadmaps and Plans to Accelerate. And, they’ve put hard dates on the liability Shift

6. What does “Liability Shift Mean”?

7. X X Liability Breakdown* *After the EMV Deadline Payment Card:
EMV CHIP? X c c c
Point of Sale:
EMV Ready? X
Fraud Liability Shift works like this:
If customer’s card is involved in fraud, the party that didn’t upgrade to EMV (the card issuer, the merchant or the processor) will have to shoulder the financial liability.
Merchant liable for ANY fraud.
Card provider liable for ANY fraud.
Shared liability, normal rules apply

8. The EMV Transition has Already Begun!
Big banks are issuing EMV travel cards for international travelers.
Retailers such as Wal-Mart, Best Buy and Home Depot are beginning EMV change
McDonalds and Nordstrom are working towards EMV

9. 70%
of point of sale terminals are projected to by EMV equipped prior to the liability shift in 2015.

10. Will YOU be EMV Ready when they are?

11. What exactly is EMV? A Chip Card A Smart Card Chip & Pin
Let’s do a quick recap of exactly what EMV is
Chip & Pin

12. EMV Card Basics A card that is embedded with a microprocessor chip.
An EMV card can be used with a signature or a PIN.
EMV technology reduces fraud that can occur with just the magnetic stripe
EMV is the global standard for payment cards.

13. 94% EMV Adoption Around the World 76.7% 54%
of European countries have completely converted to EMV
76.7%
EMV adoption rate in Canada, Latin American and the Caribbean
54%
EMV conversion in Asia Pacific
USA is the last of the G12 Countries to adopt the EMV international standard

14. If you’ve traveled abroad lately, you may have encountered a problem.
European self-service kiosks in train stations do not accept a magnetic stripe and most require a PIN.
Many foreign merchants have abandoned the technology needed to process a magnetic stripe card.

15. The American Cardholder Experience Traveling ABROAD
Foreign merchants turn away customers with magnetic stripes
US travelers are easily spotted as tourists
US Banks lost $447 million revenue due to problems with cards abroad
Rejected cards cause embarrassment & inconvenience
9.7 million US cardholders experienced acceptance issues traveling internationally in 2008 which cost banks
Source: SmartCard Alliance
Aite Group

16. EMV Reduces Fraud
The Magnetic Stripe Card contains “static” info easily lifted or skimmed by fraudsters.
EMV dramatically reduces fraud.
Since EMV, fraud losses are down % across Europe.
Without EMV assimilation, the US will become an easy target for fraud.
The cost of EMV implementation could be quickly recovered in gains from a lower overall card fraud rate.
Source: MasterCard Advisors, Advancing Insights April 2012
Source: Financial Fraud Action UK
Source: MasterCard Analysis, 2012
Source: Visa Newsroom Press Release

17. Why is EMV so secure?
EMV Transactions involve dynamic digital data that is extremely secure – not static.
A PIN verifies that the consumer is indeed using his or her card.

18. EMV’s two authentication options combat fraud:
Chip & Pin
Chip & Signature

19. In the American EMV roll out, all cards will have a chip & magnetic stripe …
Dual-Operability

20. A Typical EMV Transaction
How it Works!
A Typical EMV Transaction
Payment Method
Verification
Authentication
Chip & PIN
Online or Offline
Contact or or
Contactless
Chip & Signature

21. 3 Levels of EMV Chips FDA No Cryptology Less expensive
Most practical to start in the USA
DDA
More complex chip
Cryptology
More Features
CDA
Most complex
Most Features
Most expensive chip

22. First Wave of EMV in America
Simple chip with less complexity
Chip, Signature & Stripe implementation
Many processors aren’t supporting PIN yet
Not all POS merchants ready for PIN either

23. MasterCard and Visa have recommended a basic profile for the American EMV conversion:
Chip & Signature
Maintain Magnetic Stripe
Online
Authentication