EMV chip and pin the business case

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EMV chip and pinthe business case
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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

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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

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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

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Credit Card FraudSome Facts

• Fraud costing the industry over 400million a
  year in 2002
• Several Fraud Techniques commonly used
• Skimming
• Shoulder Surfing
• Card Trapping

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Some Statistics
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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

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The ProsTo 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

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The ProsTo the Consumer

• Able to be present during card authorisation
• Improved customer experience at the point-of sale
• Faster Authorisation
• More Piece of mind

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The ProsTo 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)

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The ConsChip and Spin

• Higher Risk of Cross-country boarder fraud
• Shoulder Surfing PIN Stealing
• Liability of Consumer to Keep their PIN safe

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References

• WIKIPEDIA.ORG
• http//en.wikipedia.org/wiki/Chip_and_PIN
• http//en.wikipedia.org/wiki/EMV
• http//en.wikipedia.org/wiki/Two-factor_authentica
  tionSmart_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