ABC of EMV

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ABC of EMV
By Ad Kloppenburg Date June 13, 2007
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Content

• Introduction
• Why do we need another methodology?
• What is ABC of EMV?
• Analyse phase
• Build phase
• Compete phase
• Summary

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Introduction

• The migration from magnetic stripe to chip is in
  most cases a complicated process
• Complex processes require a proven project based
  methodology
• Must current methodologies do not meet the EMV
  Migration requirements
• The Collis ABC of EMV methodology does
• During this presentation we will give you an
  overview of the ABC of EMV methodology

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Why do we need another methodology ?Dont we
have enough already?

• Since the beginning of IT-development many
  methods and methodologies have been released
• Each one of them claiming to be the best and
  sometimes ultimate solution
• Methodologies focussing on different stages or on
  the full life cycle of IT-systems
• Business oriented
• Process oriented
• Data oriented

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Why do we need another methodology ?Common
focus of current methodologies

• Without questioning or criticising each of these
  methodologies
• They are useful for developing new systems or
  improving or merging existing systems
• Business architecture ?
• Process architecture ?
• System
  architecture ?
• 
  Application architecture

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Why do we need another methodology ?Another
approach required

• Not all changes require the use of current
  methodologies
• Simply because it is not always a matter of new
  business i.e. new systems or infrastructures
• BUT
• A (technology) change of existing systems or
  infrastructures

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Why do we need another methodology ?The new
approach required

• We have been and are challenged with several
  (technical) changes
• The Year 2000
• The Single European Currency (Euro)
• The Single European Payment Area (SEPA)
• AND LAST BUT NOT LEAST..
• EMV

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Why do we need another methodology ?The new
approach required

• All these changes have in common that they are
  not primarily driven by business needs but
  mandated by other (external) factors
• The traditional methodologies do not fully meet
  the requirements of these type of projects
• A different approach is required.
• A step by step approach to identify and change
  the different parts in a manageable and
  controllable way
• ABC of EMV

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What is ABC of EMV ?

• A methodology for an efficient and smooth
  transition of a magstripe-based environment to a
  tested and certified EMV environment
• Developed by Collis BV.
• Based on experiences with EMV migrations and
  other similar type of projects (Year 2000, Euro
  conversion)
• ABC of EMV covers all the required steps and
  activities for a complete transition to EMV
• ABC of EMV is set up as a project methodology
• Three phases (Analyse, Build, and Compete), which
  cover implementation as well as operation and
  exploitation.

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Analyse phase

• Target of this phase
• To determine and document the EMV migration
  strategy as a result of the GAP Analysis
• It aims to combine mandates and business
  objectives to a plan in terms of
• Lead-time
• Budget
• Resources
• Etc.
• 1st step is the Quick Scan all relevant
  IT-architecture and business processes are
  analysed and documented (IST)

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Analyse phase

• 2nd step is the Target Situation Definition
  details what your business should look like once
  the EMV migration is completed (SOLL)
• (Not only EMV requirements, also other non-EMV
  related business requirements (e.g. post-issuing,
  loyalty, card-not-present transactions, etc.) are
  described and documented)
• 3rd step is the GAP Analysis overall migration
  plan on how the target situation will be achieved
  (detailed program plan, short and long term
  strategy, estimates)

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Analyse phase (Acquiring areas)

• Host upgrades
• Processing and settlement
• Reporting and management information (MI)
• PIN Management
• POS Migration
• ATM Upgrade
• Terminal management

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Analyse phase (Issuing areas)

• Card lifecycle management and card production
• Data preparation
• Transaction authorisation, processing, and
  settlement
• Quality control
• Security and risk management
• PIN handling, PIN distribution and card
  activation.
• Customer service
• Reporting and management information

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Build phase

• During the build phase EMV is implemented,
  certified, and rolled out as detailed in the EMV
  Migration Strategy
• In practice a number of the aforementioned areas
  is outsourced to 3rd party suppliers e.g.
• Host upgrade
• POS Migration
• ATM Upgrade
• Data preparation
• Etc.

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Build phase

• During this phase Collis can fully manage and
  support the implementation of EMV through
  complete EMV Program Management Office (PMO)
  services i.e.
• Program and Project Management
• Development of specifications, test requirements
  and acceptance criteria
• Security reviews, audits, and risk management
• Supplier coordination
• Vendor selection and contracting
• Business process implementation
• Testing, acceptance, and (pre-)certification
• Etc.

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Build phase PMO example
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Tools

• During the analysis and Build phase a set of
  tools is used for efficiency, check points, etc.
  i.e.
• Document templates
• Architecture blue prints and templates
• Check lists
• Quality standards
• Etc.

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Compete phase

• EMV enables new more secure channels or new value
  added applications for the cardholders
• Depending on the defined EMV migration strategy,
  the Compete step is when card issuers and
  acquirers increase the value of their EMV card
  portfolio by
• Value added technology
• Secure internet transactions, Mobile payments,
  etc.
• Value added applications
• Loyalty, ticketing, etc.
• Translation and feedback of Management
  Information
• Cardholder behaviour, cardholder differentiation,
  etc.
• Several Build ? Compete cycles can be followed,
  adding more value after each cycle

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Summary

• The migration from magnetic stripe to chip is in
  most cases a complicated process
• This type of process requires another approach
  then most current methodologies offer
• The Collis Methodology ABC of EMV offers you this
  required step-by-step approach to
• Providing Management an Consultancy skills
• Determine your migration strategy
• Performing your impact analysis
• Carrying out the design/specification work
• Providing testing tools
• Providing quality assurance and testing services

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• Thank you