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EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower
phone:
www.mercatoradvisorygroup.com
© 2012 A Mercator Advisory Group Research Brief Sponsored by
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
EMVFOR THE
A Mercator Advisory Group Research Brief Sponsored by
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
Place, Suite 420 | Maynard, MA 01754
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
EMV ESSENTIALS
FOR THE
A Mercator Advisory Group Research Brief Sponsored by
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
SSENTIALS
FOR THE U.S.
A Mercator Advisory Group Research Brief Sponsored by
Sponsored by Heartland Payment Systems
Place, Suite 420 | Maynard, MA 01754
SSENTIALS
U.S. MERCHANT
A Mercator Advisory Group Research Brief Sponsored by Heartland Payment Systems
Heartland Payment Systems
SSENTIALS ERCHANT
Heartland Payment Systems
Heartland Payment Systems
ERCHANT
Heartland Payment Systems
January
January 2011 2012
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
About
Heartland Payment Systems, Inc. (NYSE:
delivers
manageme
FORTUNE
advocacy initiative that educates merchants about fair credit and deb
company is also a leader in the development of end
cardholder data, rendering it useless to cybercriminals. For more information, please
visit
www
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
Place, Suite 420 | Maynard, MA 01754
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
About Heartland Payment Systems
Heartland Payment Systems, Inc. (NYSE:
elivers credit/debit/prepaid card processing
management and
FORTUNE 1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public
advocacy initiative that educates merchants about fair credit and deb
company is also a leader in the development of end
cardholder data, rendering it useless to cybercriminals. For more information, please
visit HeartlandPaymentSystems.com
www.heartlandpaymentsystems.com
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
Heartland Payment Systems
Heartland Payment Systems, Inc. (NYSE:
edit/debit/prepaid card processing
and related business solutions to more than 250,000 business locations nationwide. A
1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public
advocacy initiative that educates merchants about fair credit and deb
company is also a leader in the development of end
cardholder data, rendering it useless to cybercriminals. For more information, please
HeartlandPaymentSystems.com
heartlandpaymentsystems.com
Sponsored by Heartland Payment Systems
Place, Suite 420 | Maynard, MA 01754
Heartland Payment Systems
Heartland Payment Systems, Inc. (NYSE:
edit/debit/prepaid card processing
related business solutions to more than 250,000 business locations nationwide. A
1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public
advocacy initiative that educates merchants about fair credit and deb
company is also a leader in the development of end
cardholder data, rendering it useless to cybercriminals. For more information, please
HeartlandPaymentSystems.com and
heartlandpaymentsystems.com
Heartland Payment Systems
Heartland Payment Systems
Heartland Payment Systems, Inc. (NYSE: HPY), the fifth largest payments processor in the United States,
edit/debit/prepaid card processing, gift marketing and loyalty programs
related business solutions to more than 250,000 business locations nationwide. A
1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public
advocacy initiative that educates merchants about fair credit and deb
company is also a leader in the development of end-to
cardholder data, rendering it useless to cybercriminals. For more information, please
and MerchantBillOfRights.org
Heartland Payment Systems
Heartland Payment Systems
), the fifth largest payments processor in the United States,
gift marketing and loyalty programs
related business solutions to more than 250,000 business locations nationwide. A
1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public
advocacy initiative that educates merchants about fair credit and deb
to-end encryption technology designed to protect
cardholder data, rendering it useless to cybercriminals. For more information, please
MerchantBillOfRights.org
), the fifth largest payments processor in the United States,
gift marketing and loyalty programs
related business solutions to more than 250,000 business locations nationwide. A
1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public
advocacy initiative that educates merchants about fair credit and debit card processing practices. The
end encryption technology designed to protect
cardholder data, rendering it useless to cybercriminals. For more information, please
MerchantBillOfRights.org.
), the fifth largest payments processor in the United States,
gift marketing and loyalty programs, payroll, check
related business solutions to more than 250,000 business locations nationwide. A
1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public
it card processing practices. The
end encryption technology designed to protect
cardholder data, rendering it useless to cybercriminals. For more information, please
), the fifth largest payments processor in the United States,
check
related business solutions to more than 250,000 business locations nationwide. A
1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public
it card processing practices. The
end encryption technology designed to protect
2
), the fifth largest payments processor in the United States,
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
Table of Contents
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
Place, Suite 420 | Maynard, MA 01754
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
Table of Contents
Introduction
What is EMV?
Why is EMV the Right
When is EMV Coming?
EMV is not One Thing
Merchant Recommendations
Platform for the Future
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
Introduction ................................
What is EMV? ................................
Why is EMV the Right Choice?
When is EMV Coming? ................................
EMV is not One Thing ................................
Merchant Recommendations
Platform for the Future
Sponsored by Heartland Payment Systems
Place, Suite 420 | Maynard, MA 01754
................................................................
................................................................
Choice? ................................
................................
................................
Merchant Recommendations ................................
................................
Heartland Payment Systems
................................
................................
................................
................................................................
................................................................
................................
................................................................
Heartland Payment Systems
................................................................
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................... 9
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4
4
6
7
8
9
9
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
Introduction
Two major pa
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
standard EMV for secure payments, may be less wel
elsewhere around the world.
As these two approaches come forward at the same time, they have caused considerable concern and confusion
among merchants and issuers. Facing a market
security
confronted by critical choices regarding their payment acceptance systems. Merchants operat
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
and payment acceptance
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
element of that overall experience. Of course, layered into t
security and PCI compliance.
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
every ATM’s card acceptance sub
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
other transactions from both cards and NFC
and it mus
may further ease message decryption and other concerns.
This Payments Trends update answers key questions around EMV’s arrival in the U.S., why merc
and suggests the next steps for a merchant to consider.
What is EMV?
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
stream that, unlike standard static magstripe card data, rend
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
cards are impossible to counterfeit economically.
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
8 Clock Tower Place, Suite 420 | Maynar
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
Introduction
Two major payments technologies are coming to the United States. One called NFC (near field communications) is
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
standard EMV for secure payments, may be less wel
elsewhere around the world.
As these two approaches come forward at the same time, they have caused considerable concern and confusion
among merchants and issuers. Facing a market
security-driven imperative around EMV (counterfeiting magstripe cards is too easy!); merchants in particular are
confronted by critical choices regarding their payment acceptance systems. Merchants operat
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
and payment acceptance
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
element of that overall experience. Of course, layered into t
security and PCI compliance.
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
every ATM’s card acceptance sub
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
other transactions from both cards and NFC
and it must—it is best to get it over with all at once. Services from payment processors and other service providers
may further ease message decryption and other concerns.
This Payments Trends update answers key questions around EMV’s arrival in the U.S., why merc
and suggests the next steps for a merchant to consider.
What is EMV?
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
stream that, unlike standard static magstripe card data, rend
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
cards are impossible to counterfeit economically.
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
Introduction
yments technologies are coming to the United States. One called NFC (near field communications) is
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
standard EMV for secure payments, may be less wel
elsewhere around the world.
As these two approaches come forward at the same time, they have caused considerable concern and confusion
among merchants and issuers. Facing a market
driven imperative around EMV (counterfeiting magstripe cards is too easy!); merchants in particular are
confronted by critical choices regarding their payment acceptance systems. Merchants operat
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
and payment acceptance systems in a world that is increasingly homogeneous, where customers travel between
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
element of that overall experience. Of course, layered into t
security and PCI compliance.
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
every ATM’s card acceptance sub
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
other transactions from both cards and NFC
it is best to get it over with all at once. Services from payment processors and other service providers
may further ease message decryption and other concerns.
This Payments Trends update answers key questions around EMV’s arrival in the U.S., why merc
and suggests the next steps for a merchant to consider.
What is EMV?
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
stream that, unlike standard static magstripe card data, rend
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
cards are impossible to counterfeit economically.
Sponsored by Heartland Payment Systems
d, MA 01754
yments technologies are coming to the United States. One called NFC (near field communications) is
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
standard EMV for secure payments, may be less wel
elsewhere around the world.
As these two approaches come forward at the same time, they have caused considerable concern and confusion
among merchants and issuers. Facing a market
driven imperative around EMV (counterfeiting magstripe cards is too easy!); merchants in particular are
confronted by critical choices regarding their payment acceptance systems. Merchants operat
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
systems in a world that is increasingly homogeneous, where customers travel between
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
element of that overall experience. Of course, layered into t
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
every ATM’s card acceptance sub-system will require either replacement or
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
other transactions from both cards and NFC
it is best to get it over with all at once. Services from payment processors and other service providers
may further ease message decryption and other concerns.
This Payments Trends update answers key questions around EMV’s arrival in the U.S., why merc
and suggests the next steps for a merchant to consider.
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
stream that, unlike standard static magstripe card data, rend
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
cards are impossible to counterfeit economically.
Heartland Payment Systems
yments technologies are coming to the United States. One called NFC (near field communications) is
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
standard EMV for secure payments, may be less well known in the U.S., but it is well known and broadly deployed
As these two approaches come forward at the same time, they have caused considerable concern and confusion
among merchants and issuers. Facing a market-driven imp
driven imperative around EMV (counterfeiting magstripe cards is too easy!); merchants in particular are
confronted by critical choices regarding their payment acceptance systems. Merchants operat
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
systems in a world that is increasingly homogeneous, where customers travel between
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
element of that overall experience. Of course, layered into t
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
system will require either replacement or
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
other transactions from both cards and NFC-equipped handsets. In other words, if an upgrade must be made
it is best to get it over with all at once. Services from payment processors and other service providers
may further ease message decryption and other concerns.
This Payments Trends update answers key questions around EMV’s arrival in the U.S., why merc
and suggests the next steps for a merchant to consider.
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
stream that, unlike standard static magstripe card data, rend
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
cards are impossible to counterfeit economically.
Heartland Payment Systems
yments technologies are coming to the United States. One called NFC (near field communications) is
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
l known in the U.S., but it is well known and broadly deployed
As these two approaches come forward at the same time, they have caused considerable concern and confusion
driven imperative around NFC (mobile commerce is hot!) and a
driven imperative around EMV (counterfeiting magstripe cards is too easy!); merchants in particular are
confronted by critical choices regarding their payment acceptance systems. Merchants operat
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
systems in a world that is increasingly homogeneous, where customers travel between
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
element of that overall experience. Of course, layered into the customer experience is concern for payment
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
system will require either replacement or
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
equipped handsets. In other words, if an upgrade must be made
it is best to get it over with all at once. Services from payment processors and other service providers
may further ease message decryption and other concerns.
This Payments Trends update answers key questions around EMV’s arrival in the U.S., why merc
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
stream that, unlike standard static magstripe card data, renders replay of payment transactions impossible. More
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
yments technologies are coming to the United States. One called NFC (near field communications) is
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
l known in the U.S., but it is well known and broadly deployed
As these two approaches come forward at the same time, they have caused considerable concern and confusion
erative around NFC (mobile commerce is hot!) and a
driven imperative around EMV (counterfeiting magstripe cards is too easy!); merchants in particular are
confronted by critical choices regarding their payment acceptance systems. Merchants operat
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
systems in a world that is increasingly homogeneous, where customers travel between
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
he customer experience is concern for payment
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
system will require either replacement or enhancement. EMV presents an
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
equipped handsets. In other words, if an upgrade must be made
it is best to get it over with all at once. Services from payment processors and other service providers
This Payments Trends update answers key questions around EMV’s arrival in the U.S., why merc
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
ers replay of payment transactions impossible. More
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
yments technologies are coming to the United States. One called NFC (near field communications) is
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
l known in the U.S., but it is well known and broadly deployed
As these two approaches come forward at the same time, they have caused considerable concern and confusion
erative around NFC (mobile commerce is hot!) and a
driven imperative around EMV (counterfeiting magstripe cards is too easy!); merchants in particular are
confronted by critical choices regarding their payment acceptance systems. Merchants operate in the real world
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
systems in a world that is increasingly homogeneous, where customers travel between
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
he customer experience is concern for payment
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
enhancement. EMV presents an
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
equipped handsets. In other words, if an upgrade must be made
it is best to get it over with all at once. Services from payment processors and other service providers
This Payments Trends update answers key questions around EMV’s arrival in the U.S., why merchants should care,
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
ers replay of payment transactions impossible. More
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
yments technologies are coming to the United States. One called NFC (near field communications) is
getting plenty of buzz because it is all about smartphones and mobile marketing. The other, the smartcard
l known in the U.S., but it is well known and broadly deployed
As these two approaches come forward at the same time, they have caused considerable concern and confusion
erative around NFC (mobile commerce is hot!) and a
driven imperative around EMV (counterfeiting magstripe cards is too easy!); merchants in particular are
e in the real world
of existing payment infrastructure and have committed massive investments into that infrastructure.
The twin technologies of EMV and NFC are especially important to large merchants as they plan for new products
systems in a world that is increasingly homogeneous, where customers travel between
regions and expect a consistent consumer experience. The payment step in the transaction cycle is a critical
he customer experience is concern for payment
EMV alone is a significant upgrade to the U.S. payments system. To accommodate EMV, every POS terminal and
enhancement. EMV presents an
opportunity for retailers to upgrade POS terminals and ATMs to support both EMV and contactless payment and
equipped handsets. In other words, if an upgrade must be made—
it is best to get it over with all at once. Services from payment processors and other service providers
hants should care,
EMV is a payment security approach based on smartcard technology that adds dynamic data to the transaction
ers replay of payment transactions impossible. More
important, because every card contains its own microprocessor chip (that’s why it is called a smartcard), EMV
4
yments technologies are coming to the United States. One called NFC (near field communications) is
l known in the U.S., but it is well known and broadly deployed
it is best to get it over with all at once. Services from payment processors and other service providers
hants should care,
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
consortium owned by MasterCard, Visa, AMEX
completion of its EMV roll
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
not swiped like
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate.
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
Exhibit 1: Contact EMV Card
Source: Mercator Advisory Group, 2011
EMV also supports contactless payments. A card capable of both contact an
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
reader. In Canada, nearly 100% of MasterCard
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
contactless EMV is ready to accept mobile payments from smartphones.
EMV cards can be deployed for online and offline authorization.
our magstripe authorization process today where the transaction is verified immediately via an online connection
to the card issuer. Offline authorization is authorization between the card and the acceptance
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
nation
cardholder may or may not need to enter a PIN.
Given that virtually 100% of U.S. transactions are authorized online, the need for offline authori
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
with
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
PIN verification, just as we do today
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
8 Clock Tower Place, Suite 420 | Maynar
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
consortium owned by MasterCard, Visa, AMEX
completion of its EMV roll
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
not swiped like
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate.
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
Exhibit 1: Contact EMV Card
Source: Mercator Advisory Group, 2011
EMV also supports contactless payments. A card capable of both contact an
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
reader. In Canada, nearly 100% of MasterCard
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
contactless EMV is ready to accept mobile payments from smartphones.
EMV cards can be deployed for online and offline authorization.
our magstripe authorization process today where the transaction is verified immediately via an online connection
to the card issuer. Offline authorization is authorization between the card and the acceptance
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
national basis. Depending
cardholder may or may not need to enter a PIN.
Given that virtually 100% of U.S. transactions are authorized online, the need for offline authori
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
with the chief EMV benefit being the elimination of counterfeit cards. As a result of the Durbin amendment and
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
PIN verification, just as we do today
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
consortium owned by MasterCard, Visa, AMEX
completion of its EMV roll-out and Mexico is well underway.
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
a magstripe card. It is inserted into a slot on the POS terminal. On the face of the card is a metal
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate.
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
Exhibit 1: Contact EMV Card
Source: Mercator Advisory Group, 2011
EMV also supports contactless payments. A card capable of both contact an
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
reader. In Canada, nearly 100% of MasterCard
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
contactless EMV is ready to accept mobile payments from smartphones.
EMV cards can be deployed for online and offline authorization.
our magstripe authorization process today where the transaction is verified immediately via an online connection
to the card issuer. Offline authorization is authorization between the card and the acceptance
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
al basis. Depending on
cardholder may or may not need to enter a PIN.
Given that virtually 100% of U.S. transactions are authorized online, the need for offline authori
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
the chief EMV benefit being the elimination of counterfeit cards. As a result of the Durbin amendment and
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
PIN verification, just as we do today
Sponsored by Heartland Payment Systems
d, MA 01754
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
consortium owned by MasterCard, Visa, AMEX
out and Mexico is well underway.
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
a magstripe card. It is inserted into a slot on the POS terminal. On the face of the card is a metal
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate.
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
Source: Mercator Advisory Group, 2011
EMV also supports contactless payments. A card capable of both contact an
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
reader. In Canada, nearly 100% of MasterCard
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
contactless EMV is ready to accept mobile payments from smartphones.
EMV cards can be deployed for online and offline authorization.
our magstripe authorization process today where the transaction is verified immediately via an online connection
to the card issuer. Offline authorization is authorization between the card and the acceptance
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
the issuer and/or the merchant’s preferences based on transaction type and size, the
cardholder may or may not need to enter a PIN.
Given that virtually 100% of U.S. transactions are authorized online, the need for offline authori
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
the chief EMV benefit being the elimination of counterfeit cards. As a result of the Durbin amendment and
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
PIN verification, just as we do today.
Heartland Payment Systems
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
consortium owned by MasterCard, Visa, AMEX and JCB. EMV is now in wide global deployment. Canada is nearing
out and Mexico is well underway.
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
a magstripe card. It is inserted into a slot on the POS terminal. On the face of the card is a metal
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate.
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
EMV also supports contactless payments. A card capable of both contact an
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
reader. In Canada, nearly 100% of MasterCard-branded cards are dual interface. The contactless EMV i
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
contactless EMV is ready to accept mobile payments from smartphones.
EMV cards can be deployed for online and offline authorization.
our magstripe authorization process today where the transaction is verified immediately via an online connection
to the card issuer. Offline authorization is authorization between the card and the acceptance
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
the issuer and/or the merchant’s preferences based on transaction type and size, the
cardholder may or may not need to enter a PIN.
Given that virtually 100% of U.S. transactions are authorized online, the need for offline authori
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
the chief EMV benefit being the elimination of counterfeit cards. As a result of the Durbin amendment and
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
Heartland Payment Systems
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
and JCB. EMV is now in wide global deployment. Canada is nearing
out and Mexico is well underway.
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
a magstripe card. It is inserted into a slot on the POS terminal. On the face of the card is a metal
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate.
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
EMV also supports contactless payments. A card capable of both contact an
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
branded cards are dual interface. The contactless EMV i
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
contactless EMV is ready to accept mobile payments from smartphones.
EMV cards can be deployed for online and offline authorization. Online authorization uses a process similar to
our magstripe authorization process today where the transaction is verified immediately via an online connection
to the card issuer. Offline authorization is authorization between the card and the acceptance
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
the issuer and/or the merchant’s preferences based on transaction type and size, the
Given that virtually 100% of U.S. transactions are authorized online, the need for offline authori
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
the chief EMV benefit being the elimination of counterfeit cards. As a result of the Durbin amendment and
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
and JCB. EMV is now in wide global deployment. Canada is nearing
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
a magstripe card. It is inserted into a slot on the POS terminal. On the face of the card is a metal
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate.
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
EMV also supports contactless payments. A card capable of both contact and contactless transactions is called a
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
branded cards are dual interface. The contactless EMV i
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
contactless EMV is ready to accept mobile payments from smartphones.
Online authorization uses a process similar to
our magstripe authorization process today where the transaction is verified immediately via an online connection
to the card issuer. Offline authorization is authorization between the card and the acceptance
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
the issuer and/or the merchant’s preferences based on transaction type and size, the
Given that virtually 100% of U.S. transactions are authorized online, the need for offline authori
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
the chief EMV benefit being the elimination of counterfeit cards. As a result of the Durbin amendment and
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
and JCB. EMV is now in wide global deployment. Canada is nearing
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
a magstripe card. It is inserted into a slot on the POS terminal. On the face of the card is a metal
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate.
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
d contactless transactions is called a
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
branded cards are dual interface. The contactless EMV i
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
Online authorization uses a process similar to
our magstripe authorization process today where the transaction is verified immediately via an online connection
to the card issuer. Offline authorization is authorization between the card and the acceptance device, without
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
the issuer and/or the merchant’s preferences based on transaction type and size, the
Given that virtually 100% of U.S. transactions are authorized online, the need for offline authorization, also known
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
the chief EMV benefit being the elimination of counterfeit cards. As a result of the Durbin amendment and
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
to stop card counterfeiting. The organization responsible for development of EMV standards is EMVCo, a
and JCB. EMV is now in wide global deployment. Canada is nearing
An EMV card is exactly the same size and thickness as a standard magstripe card (see Exhibit 1). An EMV card is
a magstripe card. It is inserted into a slot on the POS terminal. On the face of the card is a metal
contact. When inserted, the contact connects the card to the terminal and the two devices can communicate. Of
course, almost all EMV cards also have a magstripe for use at terminals that haven’t been upgraded to EMV.
d contactless transactions is called a
dual interface card. A dual interface card can be either tapped at the POS terminal or inserted into the EMV card
branded cards are dual interface. The contactless EMV interface is
the same one that smartphones equipped with NFC chips use so a POS terminal that supports both contact and
Online authorization uses a process similar to
our magstripe authorization process today where the transaction is verified immediately via an online connection
device, without
online authorization. Offline authorization is called chip and PIN. The PIN unlocks the card. In many markets, a
PIN is used for credit transactions as well. The choice of whether to use offline authorization generally runs on a
the issuer and/or the merchant’s preferences based on transaction type and size, the
zation, also known
as chip and PIN, is negligible for domestic transactions. In the U.S. we expect the vast majority of credit cards
issued to be “chip and signature” cards that will not require a PIN. Online authorization will be used as it is today
the chief EMV benefit being the elimination of counterfeit cards. As a result of the Durbin amendment and
the greater need by issuers to manage the cost of debit processing, we expect debit cards to employ EMV online
5
While improvements to magstripe security exist, EMV is the technology that the payment card brands have chosen
and JCB. EMV is now in wide global deployment. Canada is nearing
nterface is
the issuer and/or the merchant’s preferences based on transaction type and size, the
zation, also known
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
Exhibit 2: Online and Offline PIN Countries
Source: Mercator Advisory Group, 2011
Why is EMV the Right Choice?
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
card duplication gear and Internet
too easy to create counterfeit payment cards.
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
With most of the
and more to the United States, affecting both point of sale and card not present e
payment security point of view, the U.S. is a sittin
EMV will protect against three issues when compared to magstripe:
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
8 Clock Tower Place, Suite 420 | Maynar
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
Exhibit 2: Online and Offline PIN Countries
Source: Mercator Advisory Group, 2011
Why is EMV the Right Choice?
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
card duplication gear and Internet
too easy to create counterfeit payment cards.
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
With most of the
and more to the United States, affecting both point of sale and card not present e
payment security point of view, the U.S. is a sittin
EMV will protect against three issues when compared to magstripe:
1. Counterfeit cards. EMV cards are virtually impossible to copy.
2. Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
an EMV card
3. Offline interceptions
unique, encrypted data that is of no use to the fraudster.
Belgium
Estonia
France
Finland
France
Ireland
Netherlands
Rest of Europe
is Signature
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
Exhibit 2: Online and Offline PIN Countries
Source: Mercator Advisory Group, 2011
Why is EMV the Right Choice?
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
card duplication gear and Internet
too easy to create counterfeit payment cards.
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
With most of the developed world now using EMV to prevent counterfeit card fraud, card fraud is migrating more
and more to the United States, affecting both point of sale and card not present e
payment security point of view, the U.S. is a sittin
EMV will protect against three issues when compared to magstripe:
Counterfeit cards. EMV cards are virtually impossible to copy.
Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
an EMV card is not worthwhile.
Offline interceptions
unique, encrypted data that is of no use to the fraudster.
Chip-and-Offline PIN Countries
Belgium
Estonia
France
Finland
France
Ireland
Netherlands
Rest of Europe
Signature
Sponsored by Heartland Payment Systems
d, MA 01754
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
Exhibit 2: Online and Offline PIN Countries
Source: Mercator Advisory Group, 2011
Why is EMV the Right Choice?
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
card duplication gear and Internet-sourced card data. As those fraudsters have proven over and over, it is simply
too easy to create counterfeit payment cards.
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
developed world now using EMV to prevent counterfeit card fraud, card fraud is migrating more
and more to the United States, affecting both point of sale and card not present e
payment security point of view, the U.S. is a sittin
EMV will protect against three issues when compared to magstripe:
Counterfeit cards. EMV cards are virtually impossible to copy.
Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
is not worthwhile.
Offline interceptions – “man in the middle” attacks
unique, encrypted data that is of no use to the fraudster.
Offline PIN Countries
Norway
Poland
Slovakia
Sweden
UK
Japan
Malaysia (after 2015)
Canada
Brazil
Chile
Heartland Payment Systems
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
Why is EMV the Right Choice?
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
ourced card data. As those fraudsters have proven over and over, it is simply
too easy to create counterfeit payment cards.
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
developed world now using EMV to prevent counterfeit card fraud, card fraud is migrating more
and more to the United States, affecting both point of sale and card not present e
payment security point of view, the U.S. is a sitting duck.
EMV will protect against three issues when compared to magstripe:
Counterfeit cards. EMV cards are virtually impossible to copy.
Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
“man in the middle” attacks
unique, encrypted data that is of no use to the fraudster.
Offline PIN Countries
Malaysia (after 2015)
Heartland Payment Systems
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
ourced card data. As those fraudsters have proven over and over, it is simply
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
developed world now using EMV to prevent counterfeit card fraud, card fraud is migrating more
and more to the United States, affecting both point of sale and card not present e
EMV will protect against three issues when compared to magstripe:
Counterfeit cards. EMV cards are virtually impossible to copy.
Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
“man in the middle” attacks – are thwarted because each transaction contains
unique, encrypted data that is of no use to the fraudster.
Chip
Online PIN Countries
Spain
Portugal
Mexico
Italy
Turkey
Germany
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
ourced card data. As those fraudsters have proven over and over, it is simply
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
developed world now using EMV to prevent counterfeit card fraud, card fraud is migrating more
and more to the United States, affecting both point of sale and card not present e-commerce security. From a
Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
are thwarted because each transaction contains
Chip-and-Signature /
Online PIN Countries
Australia
New Zealand
China
India
Malaysia (until 2015)
Russia
Rest of Asia is Signature
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
ourced card data. As those fraudsters have proven over and over, it is simply
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
developed world now using EMV to prevent counterfeit card fraud, card fraud is migrating more
commerce security. From a
Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
are thwarted because each transaction contains
Signature /
Online PIN Countries
Australia
New Zealand
Malaysia (until 2015)
Rest of Asia is Signature
EMV is a global standard. The U.S. is the major laggard and the last major EMV holdout (see Exhibit 2).
The venerable magstripe has served the payment card well for decades, enabling untold numbers of electronic
transactions. But the magstripe is no longer able to fend off fraudsters armed with low cost magstripe readers,
ourced card data. As those fraudsters have proven over and over, it is simply
The result has been an outbreak of card skimming that has cost merchants, card issuers, and consumers millions.
developed world now using EMV to prevent counterfeit card fraud, card fraud is migrating more
commerce security. From a
Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
are thwarted because each transaction contains
Rest of Asia is Signature
6
developed world now using EMV to prevent counterfeit card fraud, card fraud is migrating more
Skimming. Because each transaction is unique and cards cannot be economically counterfeited, skimming
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
When is EMV Coming?
While it has been anticipated for years, it appears that
security.
States toward a broad deployment of EMV. Visa’s avowed purpose was to pave the way for conta
based on dynamic data. To date, none of its major competitors have made similarly wide
pronouncements, although they are expected
not surprising.
To move the
Visa’s pushing for a comparatively swift EMV rollout in the United States with that
course,
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
ATM business. It is
for a U.S. EMV rollout.
EMV issuance in the United States is
issue EMV cards
to more and more U.S. cardholders. Because debit issuance is now a cost
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
8 Clock Tower Place, Suite 420 | Maynar
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
When is EMV Coming?
While it has been anticipated for years, it appears that
security. On August 9, 2011, Visa announced
States toward a broad deployment of EMV. Visa’s avowed purpose was to pave the way for conta
based on dynamic data. To date, none of its major competitors have made similarly wide
pronouncements, although they are expected
not surprising.
To move the pay
1. Technology Innovation Program (TIP)
compliance validation
compliant) POS terminals. The U.S
terminals must accept both contact and contactless chip cards and contactless transactions from NFC
equipped mobile de
validation once three quarters of
2. Merchant Acquirers Get Ready
generated dynamic data associated with each EMV transaction.
3. Merchant Get Ready
any counterfeit
on that EMV card because the merchant does not have an EMV
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
shift will
two years to prepare, given the high cost of upgrading their automatic fuel dispensers. The phrase
“liability shift” is frequently used in discussions over EM
encourage the transition to chip cards. With chip
liability shift.
Visa’s pushing for a comparatively swift EMV rollout in the United States with that
course, in order for that to happen
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
ATM business. It is
for a U.S. EMV rollout.
EMV issuance in the United States is
issue EMV cards
to more and more U.S. cardholders. Because debit issuance is now a cost
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
When is EMV Coming?
While it has been anticipated for years, it appears that
On August 9, 2011, Visa announced
States toward a broad deployment of EMV. Visa’s avowed purpose was to pave the way for conta
based on dynamic data. To date, none of its major competitors have made similarly wide
pronouncements, although they are expected
payments ecosystem
Technology Innovation Program (TIP)
compliance validation
compliant) POS terminals. The U.S
terminals must accept both contact and contactless chip cards and contactless transactions from NFC
equipped mobile devices. Visa’s TIP program does not eliminate a merchant’s PCI requirements
validation once three quarters of
Merchant Acquirers Get Ready
generated dynamic data associated with each EMV transaction.
Merchant Get Ready
any counterfeit or fraud
on that EMV card because the merchant does not have an EMV
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
shift will be in effect for both domestic and cross
two years to prepare, given the high cost of upgrading their automatic fuel dispensers. The phrase
“liability shift” is frequently used in discussions over EM
encourage the transition to chip cards. With chip
liability shift.
Visa’s pushing for a comparatively swift EMV rollout in the United States with that
in order for that to happen
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
ATM business. It is targeting inter
for a U.S. EMV rollout.
EMV issuance in the United States is
issue EMV cards to their corporate and high net worth customers. But there are plans to bring the security of EMV
to more and more U.S. cardholders. Because debit issuance is now a cost
Sponsored by Heartland Payment Systems
d, MA 01754
When is EMV Coming?
While it has been anticipated for years, it appears that
On August 9, 2011, Visa announced
States toward a broad deployment of EMV. Visa’s avowed purpose was to pave the way for conta
based on dynamic data. To date, none of its major competitors have made similarly wide
pronouncements, although they are expected
ments ecosystem – issuers, acquirers and merchants
Technology Innovation Program (TIP)
compliance validation once 75 percent of their Visa transactio
compliant) POS terminals. The U.S.
terminals must accept both contact and contactless chip cards and contactless transactions from NFC
vices. Visa’s TIP program does not eliminate a merchant’s PCI requirements
validation once three quarters of Visa transactions originate from EMV
Merchant Acquirers Get Ready. By April 1, 2013, acquirers must be ready to proces
generated dynamic data associated with each EMV transaction.
Merchant Get Ready – Liability Shift
fraud losses on a transaction
on that EMV card because the merchant does not have an EMV
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
be in effect for both domestic and cross
two years to prepare, given the high cost of upgrading their automatic fuel dispensers. The phrase
“liability shift” is frequently used in discussions over EM
encourage the transition to chip cards. With chip
Visa’s pushing for a comparatively swift EMV rollout in the United States with that
in order for that to happen U.S. issuers have to
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
targeting inter-regional Maestro ATM transactions.
EMV issuance in the United States is getting underway
to their corporate and high net worth customers. But there are plans to bring the security of EMV
to more and more U.S. cardholders. Because debit issuance is now a cost
Heartland Payment Systems
While it has been anticipated for years, it appears that the U.S. is beginning to adopt smartcard
On August 9, 2011, Visa announced the beginning of
States toward a broad deployment of EMV. Visa’s avowed purpose was to pave the way for conta
based on dynamic data. To date, none of its major competitors have made similarly wide
pronouncements, although they are expected to. Issuer reluctance, given the costs and regulatory environment, is
issuers, acquirers and merchants
Technology Innovation Program (TIP). The TIP program allows merchants to skip their annual
75 percent of their Visa transactio
TIP program goes into effect
terminals must accept both contact and contactless chip cards and contactless transactions from NFC
vices. Visa’s TIP program does not eliminate a merchant’s PCI requirements
Visa transactions originate from EMV
. By April 1, 2013, acquirers must be ready to proces
generated dynamic data associated with each EMV transaction.
Liability Shift. After October 15, 2015,
losses on a transaction if a cardholder w
on that EMV card because the merchant does not have an EMV
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
be in effect for both domestic and cross-
two years to prepare, given the high cost of upgrading their automatic fuel dispensers. The phrase
“liability shift” is frequently used in discussions over EM
encourage the transition to chip cards. With chip-
Visa’s pushing for a comparatively swift EMV rollout in the United States with that
issuers have to support
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
regional Maestro ATM transactions.
getting underway. A few credit unions and a few large banks have begun to
to their corporate and high net worth customers. But there are plans to bring the security of EMV
to more and more U.S. cardholders. Because debit issuance is now a cost
Heartland Payment Systems
the U.S. is beginning to adopt smartcard
beginning of what will be a long process to
States toward a broad deployment of EMV. Visa’s avowed purpose was to pave the way for conta
based on dynamic data. To date, none of its major competitors have made similarly wide
. Issuer reluctance, given the costs and regulatory environment, is
issuers, acquirers and merchants – Visa
The TIP program allows merchants to skip their annual
75 percent of their Visa transactions are originated on chip
TIP program goes into effect
terminals must accept both contact and contactless chip cards and contactless transactions from NFC
vices. Visa’s TIP program does not eliminate a merchant’s PCI requirements
Visa transactions originate from EMV
. By April 1, 2013, acquirers must be ready to proces
generated dynamic data associated with each EMV transaction.
. After October 15, 2015, merchant acquirers will be responsible
if a cardholder w
on that EMV card because the merchant does not have an EMV
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
-border POS transactions. Gasoline retailers have another
two years to prepare, given the high cost of upgrading their automatic fuel dispensers. The phrase
“liability shift” is frequently used in discussions over EMV rollout. The purpose of the liability shift is to
-to-chip transactions, there is no concern regarding
Visa’s pushing for a comparatively swift EMV rollout in the United States with that
support a massive EMV card rollout.
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
regional Maestro ATM transactions. But it hasn’t announced any endorsement
. A few credit unions and a few large banks have begun to
to their corporate and high net worth customers. But there are plans to bring the security of EMV
to more and more U.S. cardholders. Because debit issuance is now a cost
the U.S. is beginning to adopt smartcard
what will be a long process to
States toward a broad deployment of EMV. Visa’s avowed purpose was to pave the way for conta
based on dynamic data. To date, none of its major competitors have made similarly wide
. Issuer reluctance, given the costs and regulatory environment, is
Visa announced three separate programs
The TIP program allows merchants to skip their annual
ns are originated on chip
TIP program goes into effect on October 1, 2012. Qualifying POS
terminals must accept both contact and contactless chip cards and contactless transactions from NFC
vices. Visa’s TIP program does not eliminate a merchant’s PCI requirements
Visa transactions originate from EMV-capable
. By April 1, 2013, acquirers must be ready to proces
generated dynamic data associated with each EMV transaction.
merchant acquirers will be responsible
if a cardholder with an EMV card must use the magstripe
on that EMV card because the merchant does not have an EMV-capable POS terminal. The merchant
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
border POS transactions. Gasoline retailers have another
two years to prepare, given the high cost of upgrading their automatic fuel dispensers. The phrase
V rollout. The purpose of the liability shift is to
chip transactions, there is no concern regarding
Visa’s pushing for a comparatively swift EMV rollout in the United States with that October 15, 2015 date. Of
a massive EMV card rollout.
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
But it hasn’t announced any endorsement
. A few credit unions and a few large banks have begun to
to their corporate and high net worth customers. But there are plans to bring the security of EMV
to more and more U.S. cardholders. Because debit issuance is now a cost-based activity, Mercator anticipates that
the U.S. is beginning to adopt smartcard-based payment
what will be a long process to move the United
States toward a broad deployment of EMV. Visa’s avowed purpose was to pave the way for contactless and NFC
based on dynamic data. To date, none of its major competitors have made similarly wide-ranging
. Issuer reluctance, given the costs and regulatory environment, is
announced three separate programs
The TIP program allows merchants to skip their annual
ns are originated on chip-enabled (EMV
October 1, 2012. Qualifying POS
terminals must accept both contact and contactless chip cards and contactless transactions from NFC
vices. Visa’s TIP program does not eliminate a merchant’s PCI requirements
capable terminals.
. By April 1, 2013, acquirers must be ready to process the cryptographically
merchant acquirers will be responsible
ith an EMV card must use the magstripe
capable POS terminal. The merchant
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
border POS transactions. Gasoline retailers have another
two years to prepare, given the high cost of upgrading their automatic fuel dispensers. The phrase
V rollout. The purpose of the liability shift is to
chip transactions, there is no concern regarding
October 15, 2015 date. Of
a massive EMV card rollout.
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
But it hasn’t announced any endorsement
. A few credit unions and a few large banks have begun to
to their corporate and high net worth customers. But there are plans to bring the security of EMV
based activity, Mercator anticipates that
based payment
move the United
ctless and NFC
. Issuer reluctance, given the costs and regulatory environment, is
announced three separate programs:
The TIP program allows merchants to skip their annual Visa PCI
enabled (EMV
October 1, 2012. Qualifying POS
terminals must accept both contact and contactless chip cards and contactless transactions from NFC-
vices. Visa’s TIP program does not eliminate a merchant’s PCI requirements, just the
s the cryptographically
merchant acquirers will be responsible for
ith an EMV card must use the magstripe
capable POS terminal. The merchant
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
border POS transactions. Gasoline retailers have another
two years to prepare, given the high cost of upgrading their automatic fuel dispensers. The phrase
V rollout. The purpose of the liability shift is to
chip transactions, there is no concern regarding
October 15, 2015 date. Of
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
But it hasn’t announced any endorsement
. A few credit unions and a few large banks have begun to
to their corporate and high net worth customers. But there are plans to bring the security of EMV
based activity, Mercator anticipates that
7
. Issuer reluctance, given the costs and regulatory environment, is
s the cryptographically
acquirer is likely to, in turn, make the merchant responsible for the fraud on that transaction. This liability
border POS transactions. Gasoline retailers have another
What is MasterCard Doing? To date, the second largest card network is encouraging the EMV transition only on its
to their corporate and high net worth customers. But there are plans to bring the security of EMV
based activity, Mercator anticipates that
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
debit card issuers in the U.S. will opt f
protections that a PIN confers.
EMV is not One Thing
For many U.S. readers, the term “EMV” has been synonymous with a contact
and
based on a contact transaction exists, as does (
transaction type: credit, debit, and prepaid. And it can b
3).
Exhibit 3: EMV
Source: Mercator Advisory Group, 2011
Of course, expecting all security troubles to be resolved by one technology is wis
has suffered from this “silver
Payments security is about layers of defense because multiple layers work better. For example, the best e
commerce m
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
eliminating the counterfeit and transaction repl
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
8 Clock Tower Place, Suite 420 | Maynar
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
debit card issuers in the U.S. will opt f
protections that a PIN confers.
EMV is not One Thing
For many U.S. readers, the term “EMV” has been synonymous with a contact
and-PIN” approach used
based on a contact transaction exists, as does (
transaction type: credit, debit, and prepaid. And it can b
3).
Exhibit 3: EMV -
Source: Mercator Advisory Group, 2011
Of course, expecting all security troubles to be resolved by one technology is wis
has suffered from this “silver
Payments security is about layers of defense because multiple layers work better. For example, the best e
commerce merchants, the Merchant Risk Council's Platinum members, use on average 7.9 tools to manage their
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
eliminating the counterfeit and transaction repl
Consumer may enter a PIN (Chip +
PIN), a signature or no factor based
on limits or in contactless mode
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
debit card issuers in the U.S. will opt f
protections that a PIN confers.
EMV is not One Thing
For many U.S. readers, the term “EMV” has been synonymous with a contact
PIN” approach used in the UK and elsewhere, however, is simply an implementation decision. Signature EMV
based on a contact transaction exists, as does (
transaction type: credit, debit, and prepaid. And it can b
- Multiple Form Factors, Multiple Communications Links
Source: Mercator Advisory Group, 2011
Of course, expecting all security troubles to be resolved by one technology is wis
has suffered from this “silver-bullet
Payments security is about layers of defense because multiple layers work better. For example, the best e
erchants, the Merchant Risk Council's Platinum members, use on average 7.9 tools to manage their
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
eliminating the counterfeit and transaction repl
EM
V S
ys
tem
Consumer may (Chip +
PIN), a signature or no factor based
on limits or in contactless mode
Sponsored by Heartland Payment Systems
d, MA 01754
debit card issuers in the U.S. will opt for EMV cards to take advantage of the lost, stolen and friendly fraud
protections that a PIN confers.
EMV is not One Thing
For many U.S. readers, the term “EMV” has been synonymous with a contact
in the UK and elsewhere, however, is simply an implementation decision. Signature EMV
based on a contact transaction exists, as does (
transaction type: credit, debit, and prepaid. And it can b
Multiple Form Factors, Multiple Communications Links
Source: Mercator Advisory Group, 2011
Of course, expecting all security troubles to be resolved by one technology is wis
bullet-itis” as well but it is no more a cure
Payments security is about layers of defense because multiple layers work better. For example, the best e
erchants, the Merchant Risk Council's Platinum members, use on average 7.9 tools to manage their
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
eliminating the counterfeit and transaction repl
EM
V S
ys
tem
Offline Mode
Authorization / Limits
Contact
Interface
Heartland Payment Systems
or EMV cards to take advantage of the lost, stolen and friendly fraud
For many U.S. readers, the term “EMV” has been synonymous with a contact
in the UK and elsewhere, however, is simply an implementation decision. Signature EMV
based on a contact transaction exists, as does (and this is important
transaction type: credit, debit, and prepaid. And it can be built into smartphones armed with NFC chips (see Exhibit
Multiple Form Factors, Multiple Communications Links
Of course, expecting all security troubles to be resolved by one technology is wis
itis” as well but it is no more a cure
Payments security is about layers of defense because multiple layers work better. For example, the best e
erchants, the Merchant Risk Council's Platinum members, use on average 7.9 tools to manage their
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
eliminating the counterfeit and transaction replay risks, a pair of big holes.
EMV Security Stack
Offline Mode
Authorization / Limits
Payment Network
Contactless
Interface
Heartland Payment Systems
or EMV cards to take advantage of the lost, stolen and friendly fraud
For many U.S. readers, the term “EMV” has been synonymous with a contact
in the UK and elsewhere, however, is simply an implementation decision. Signature EMV
and this is important) contactless EMV. EMV can be used for any
e built into smartphones armed with NFC chips (see Exhibit
Multiple Form Factors, Multiple Communications Links
Of course, expecting all security troubles to be resolved by one technology is wis
itis” as well but it is no more a cure-
Payments security is about layers of defense because multiple layers work better. For example, the best e
erchants, the Merchant Risk Council's Platinum members, use on average 7.9 tools to manage their
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
ay risks, a pair of big holes.
EMV Security Stack - Crypto
Online Mode
Payment Network
Contactless
Interface
or EMV cards to take advantage of the lost, stolen and friendly fraud
For many U.S. readers, the term “EMV” has been synonymous with a contact-only, PIN
in the UK and elsewhere, however, is simply an implementation decision. Signature EMV
) contactless EMV. EMV can be used for any
e built into smartphones armed with NFC chips (see Exhibit
Multiple Form Factors, Multiple Communications Links
Of course, expecting all security troubles to be resolved by one technology is wishful thinking. EMV deployment
-all than card number encryption.
Payments security is about layers of defense because multiple layers work better. For example, the best e
erchants, the Merchant Risk Council's Platinum members, use on average 7.9 tools to manage their
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
ay risks, a pair of big holes.
Crypto
Online Mode
NFC
Secure
or EMV cards to take advantage of the lost, stolen and friendly fraud
only, PIN-only technology. The “chip
in the UK and elsewhere, however, is simply an implementation decision. Signature EMV
) contactless EMV. EMV can be used for any
e built into smartphones armed with NFC chips (see Exhibit
hful thinking. EMV deployment
all than card number encryption.
Payments security is about layers of defense because multiple layers work better. For example, the best e
erchants, the Merchant Risk Council's Platinum members, use on average 7.9 tools to manage their
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
Secure Element
SIM Card
In Phone,
Fob, microSD
or EMV cards to take advantage of the lost, stolen and friendly fraud
only technology. The “chip-
in the UK and elsewhere, however, is simply an implementation decision. Signature EMV
) contactless EMV. EMV can be used for any
e built into smartphones armed with NFC chips (see Exhibit
hful thinking. EMV deployment
all than card number encryption.
Payments security is about layers of defense because multiple layers work better. For example, the best e-
erchants, the Merchant Risk Council's Platinum members, use on average 7.9 tools to manage their
fraud risk. Weaker performers use fewer tools. For point of sale payments, EMV creates a secure environment by
8
-
e built into smartphones armed with NFC chips (see Exhibit
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
Merchant Recommendations
To prepare for EMV
recommendations:
Platform for the Future
EMV does a lot to improve the counterfeit card problem at the point of sale.
data, it will decrease, in the long run, card
transactions.
more difficult, card not present fraud wi
As NFC
security for mobile payments using NFC.
a wide range of mobile transactions.
appropriate hardware, EMV and, in the case of mobile handsets, the hardware is there.
With both of these payment technologies arrivi
and take advantage of the security and marketing advantages each offers.
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
8 Clock Tower Place, Suite 420 | Maynar
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
Merchant Recommendations
To prepare for EMV
recommendations:
� If you're refreshing your terminal estate, buy EMV capable terminals. Spend the
you’re ready to take “chip and PIN” payments.
� If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
contact
directly, not via an add
capability if you plan to get more than two years (and you do) out of your POS terminals. This positions
you for both today’
� If you haven’t already, consider PIN debit acceptance. Because EMV does support PIN, nearly 100% of
EMV terminals include PIN pads. So put those pads, and the lower cost of debi
� Drive a hard bargain. There is going to be heavy competition for the POS upgrade business.
Platform for the Future
EMV does a lot to improve the counterfeit card problem at the point of sale.
data, it will decrease, in the long run, card
transactions. The ability to skim cards goes away.
more difficult, card not present fraud wi
As NFC-equipped smartphones roll out in 2012 and beyond, the EMV shift can be used to increase payment
security for mobile payments using NFC.
a wide range of mobile transactions.
appropriate hardware, EMV and, in the case of mobile handsets, the hardware is there.
With both of these payment technologies arrivi
and take advantage of the security and marketing advantages each offers.
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
8 Clock Tower Place, Suite 420 | Maynard, MA 01754
mail: [email protected]
www.mercatoradvisorygroup.com
Merchant Recommendations
To prepare for EMV and mobile payments, merchants of almost any size are wise to follow the following
recommendations:
If you're refreshing your terminal estate, buy EMV capable terminals. Spend the
you’re ready to take “chip and PIN” payments.
If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
contact and contactless EMV. Look for terminals where the contactless capability is b
directly, not via an add
capability if you plan to get more than two years (and you do) out of your POS terminals. This positions
you for both today’s contactless card payments and for the coming era of NFC
If you haven’t already, consider PIN debit acceptance. Because EMV does support PIN, nearly 100% of
EMV terminals include PIN pads. So put those pads, and the lower cost of debi
Drive a hard bargain. There is going to be heavy competition for the POS upgrade business.
Platform for the Future
EMV does a lot to improve the counterfeit card problem at the point of sale.
data, it will decrease, in the long run, card
The ability to skim cards goes away.
more difficult, card not present fraud wi
equipped smartphones roll out in 2012 and beyond, the EMV shift can be used to increase payment
security for mobile payments using NFC.
a wide range of mobile transactions.
appropriate hardware, EMV and, in the case of mobile handsets, the hardware is there.
With both of these payment technologies arrivi
and take advantage of the security and marketing advantages each offers.
Sponsored by Heartland Payment Systems
d, MA 01754
Merchant Recommendations
mobile payments, merchants of almost any size are wise to follow the following
If you're refreshing your terminal estate, buy EMV capable terminals. Spend the
you’re ready to take “chip and PIN” payments.
If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
contactless EMV. Look for terminals where the contactless capability is b
directly, not via an add-on card or external device. That will keep the cost lower. Buy contactless payment
capability if you plan to get more than two years (and you do) out of your POS terminals. This positions
s contactless card payments and for the coming era of NFC
If you haven’t already, consider PIN debit acceptance. Because EMV does support PIN, nearly 100% of
EMV terminals include PIN pads. So put those pads, and the lower cost of debi
Drive a hard bargain. There is going to be heavy competition for the POS upgrade business.
Platform for the Future
EMV does a lot to improve the counterfeit card problem at the point of sale.
data, it will decrease, in the long run, card-not
The ability to skim cards goes away.
more difficult, card not present fraud will increase as fraud migrates to the less secure channel.
equipped smartphones roll out in 2012 and beyond, the EMV shift can be used to increase payment
security for mobile payments using NFC. EMV provides an important part of the security infrast
a wide range of mobile transactions. POS payments and e
appropriate hardware, EMV and, in the case of mobile handsets, the hardware is there.
With both of these payment technologies arrivi
and take advantage of the security and marketing advantages each offers.
Heartland Payment Systems
Merchant Recommendations
mobile payments, merchants of almost any size are wise to follow the following
If you're refreshing your terminal estate, buy EMV capable terminals. Spend the
you’re ready to take “chip and PIN” payments.
If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
contactless EMV. Look for terminals where the contactless capability is b
on card or external device. That will keep the cost lower. Buy contactless payment
capability if you plan to get more than two years (and you do) out of your POS terminals. This positions
s contactless card payments and for the coming era of NFC
If you haven’t already, consider PIN debit acceptance. Because EMV does support PIN, nearly 100% of
EMV terminals include PIN pads. So put those pads, and the lower cost of debi
Drive a hard bargain. There is going to be heavy competition for the POS upgrade business.
EMV does a lot to improve the counterfeit card problem at the point of sale.
not-present fraud during e
The ability to skim cards goes away. In the short to medium term, as card present fraud becomes
ll increase as fraud migrates to the less secure channel.
equipped smartphones roll out in 2012 and beyond, the EMV shift can be used to increase payment
EMV provides an important part of the security infrast
POS payments and e
appropriate hardware, EMV and, in the case of mobile handsets, the hardware is there.
With both of these payment technologies arriving at the same time, the smart merchant will plan to support both
and take advantage of the security and marketing advantages each offers.
Heartland Payment Systems
mobile payments, merchants of almost any size are wise to follow the following
If you're refreshing your terminal estate, buy EMV capable terminals. Spend the
If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
contactless EMV. Look for terminals where the contactless capability is b
on card or external device. That will keep the cost lower. Buy contactless payment
capability if you plan to get more than two years (and you do) out of your POS terminals. This positions
s contactless card payments and for the coming era of NFC
If you haven’t already, consider PIN debit acceptance. Because EMV does support PIN, nearly 100% of
EMV terminals include PIN pads. So put those pads, and the lower cost of debi
Drive a hard bargain. There is going to be heavy competition for the POS upgrade business.
EMV does a lot to improve the counterfeit card problem at the point of sale.
present fraud during e-commerce and mobile commerce
In the short to medium term, as card present fraud becomes
ll increase as fraud migrates to the less secure channel.
equipped smartphones roll out in 2012 and beyond, the EMV shift can be used to increase payment
EMV provides an important part of the security infrast
POS payments and e-commerce payments can also leverage, with the
appropriate hardware, EMV and, in the case of mobile handsets, the hardware is there.
ng at the same time, the smart merchant will plan to support both
and take advantage of the security and marketing advantages each offers.
mobile payments, merchants of almost any size are wise to follow the following
If you're refreshing your terminal estate, buy EMV capable terminals. Spend the
If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
contactless EMV. Look for terminals where the contactless capability is b
on card or external device. That will keep the cost lower. Buy contactless payment
capability if you plan to get more than two years (and you do) out of your POS terminals. This positions
s contactless card payments and for the coming era of NFC
If you haven’t already, consider PIN debit acceptance. Because EMV does support PIN, nearly 100% of
EMV terminals include PIN pads. So put those pads, and the lower cost of debi
Drive a hard bargain. There is going to be heavy competition for the POS upgrade business.
EMV does a lot to improve the counterfeit card problem at the point of sale. By reducing the availability of stati
commerce and mobile commerce
In the short to medium term, as card present fraud becomes
ll increase as fraud migrates to the less secure channel.
equipped smartphones roll out in 2012 and beyond, the EMV shift can be used to increase payment
EMV provides an important part of the security infrast
commerce payments can also leverage, with the
appropriate hardware, EMV and, in the case of mobile handsets, the hardware is there.
ng at the same time, the smart merchant will plan to support both
and take advantage of the security and marketing advantages each offers.
mobile payments, merchants of almost any size are wise to follow the following
If you're refreshing your terminal estate, buy EMV capable terminals. Spend the extra $10. Make sure
If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
contactless EMV. Look for terminals where the contactless capability is built into the terminal
on card or external device. That will keep the cost lower. Buy contactless payment
capability if you plan to get more than two years (and you do) out of your POS terminals. This positions
s contactless card payments and for the coming era of NFC-based transactions.
If you haven’t already, consider PIN debit acceptance. Because EMV does support PIN, nearly 100% of
EMV terminals include PIN pads. So put those pads, and the lower cost of debit acceptance, to work.
Drive a hard bargain. There is going to be heavy competition for the POS upgrade business.
By reducing the availability of stati
commerce and mobile commerce
In the short to medium term, as card present fraud becomes
ll increase as fraud migrates to the less secure channel.
equipped smartphones roll out in 2012 and beyond, the EMV shift can be used to increase payment
EMV provides an important part of the security infrastructure needed for
commerce payments can also leverage, with the
appropriate hardware, EMV and, in the case of mobile handsets, the hardware is there.
ng at the same time, the smart merchant will plan to support both
mobile payments, merchants of almost any size are wise to follow the following
extra $10. Make sure
If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
uilt into the terminal
on card or external device. That will keep the cost lower. Buy contactless payment
capability if you plan to get more than two years (and you do) out of your POS terminals. This positions
based transactions.
If you haven’t already, consider PIN debit acceptance. Because EMV does support PIN, nearly 100% of
t acceptance, to work.
Drive a hard bargain. There is going to be heavy competition for the POS upgrade business.
By reducing the availability of static
commerce and mobile commerce
In the short to medium term, as card present fraud becomes
equipped smartphones roll out in 2012 and beyond, the EMV shift can be used to increase payment
ructure needed for
commerce payments can also leverage, with the
ng at the same time, the smart merchant will plan to support both
9
If mobile commerce and payments are on your mind, and they should be. Purchase terminals that support
uilt into the terminal
on card or external device. That will keep the cost lower. Buy contactless payment
ructure needed for
EMV Essentials for the U.S. Merchant A Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone:
www.mercatoradvisorygroup.com
© 2012
EMV Essentials for the U.S. MerchantA Mercator Advisory Group
8 Clock Tower Place, Suite 420 | Maynar
phone: 1(781) 419-
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
Copyright Notice
External publication terms for Mercator Advisory Group information and data:
information that is to be used in advertising, press releases, or promotional materials requires prior written
approval from the appropriate Mercator Advisory Group research director. A draft of the proposed document
should accompany any suc
usage for any reason.
Copyright 201
EMV Essentials for the U.S. MerchantA Mercator Advisory Group Research Brief
8 Clock Tower Place, Suite 420 | Maynar
-1700 | e-mail:
www.mercatoradvisorygroup.com
Mercator Advisory Group, Inc.
Copyright Notice
External publication terms for Mercator Advisory Group information and data:
information that is to be used in advertising, press releases, or promotional materials requires prior written
approval from the appropriate Mercator Advisory Group research director. A draft of the proposed document
should accompany any suc
usage for any reason.
Copyright 2012, Mercator Advisory Group, Inc. Reproduction without written permission is completely forbidden.
EMV Essentials for the U.S. Merchant Research Brief Sponsored by
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information that is to be used in advertising, press releases, or promotional materials requires prior written
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information that is to be used in advertising, press releases, or promotional materials requires prior written
approval from the appropriate Mercator Advisory Group research director. A draft of the proposed document
h request. Mercator Advisory Group reserves the right to deny approval of external
, Mercator Advisory Group, Inc. Reproduction without written permission is completely forbidden.
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