EMV chip and pin the business case

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

 An initiative to implement the EMV
  standard for secure payments in the U.K.
 Tested in Northampton in May 2003
 Rolled out in 2004
 Mandatory from January 2005
    What are Magnetic stripe Cards?

 Card Capable of storing data on a
  Magnetic Stripe
 The first modern charge card was issued
  by Diner's Club in 1950
 Can be more easily copied
 Magstripe can be damaged over time
Credit Card Fraud…Some Facts
    Fraud costing the industry over
     £400million a year in 2002
    Several Fraud Techniques commonly
     used:
1.   Skimming
2.   Shoulder Surfing
3.   Card Trapping
Some Statistics…
           How it Works
 The System Utilises Two-factor
  authentication
 Card read by portable or connected
  console
 Transaction Authorised with end users
  PIN instead of a signature
       The Pro‟s…To the Banks

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

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

 Possibility of reduced bank charges and
  charge-backs
 Insulates retailers from effects of fraud
  liability shift
 Increased sales conversion and
  improved efficiency due to authorization
  speed
 Less paperwork (Receipts)
    The Cons…”Chip and Spin”

 Higher Risk of Cross-country boarder
  fraud
 “Shoulder Surfing” PIN Stealing
 Liability of Consumer to Keep their PIN
  safe
                                  References
WIKIPEDIA.ORG
http://en.wikipedia.org/wiki/Chip_and_PIN
http://en.wikipedia.org/wiki/EMV
http://en.wikipedia.org/wiki/Two-factor_authentication#Smart_cards
DATACASH.COM
http://www.datacash.com/services/chip_and_pin/emv.shtml
CHIPANDSPIN.CO.UK
Chip and Spin
Ross Anderson, Mike Bond, and Steven J. Murdoch
Computer Laboratory, University of Cambridge.
PIN (& Chip) or signature – beating the
cheating?
Dan Cvrcek, Jan Krhovjak, Vashek Matyas
Masaryk University in Brno, Faculty of Informatics
PINPAD.CO.UK
Secure solution for EMV chip card acceptance and PIN
entry at point-of-sale
CARDWATCH.ORG.UK