© 2012 UL LLC S The EMV Ecosystem An Interactive Experience for the Payments Community Smart Card...

© 2012 UL LLC

SThe EMV EcosystemAn Interactive Experience for the Payments Community

Smart Card Alliance Payments Council

January 30, 2013

First Time Users – Click to Start

Returning Users – Click to Resume

Copyright © 2013 Smart Card Alliance

Instructions on how to use this presentation

From this slide forward you should use the mouse for navigation.

When the mouse pointer changes to a hand you can click it.

All buttons will be clickable and navigate you through the presentation.

At anytime you can go BACK, go to the HOME page or EXIT the presentation by clicking on the navigation buttons at the top of the page.

Clicking on the Smart Card Alliance logo will provide you with more information about the organization and the contributors to this document.

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The Smart Card Alliance Payments Council developed this interactive presentation to provide an educational resource for the payments industry.

The presentation shows the full EMV ecosystem, with participants who play roles in EMV issuance, acceptance and transaction processes.

Clicking on one of the participants takes you to a page for that ecosystem participant with a description of the participant’s roles, example organizations that play these roles, and key links with other ecosystem participants.

- Click NEXT to proceed

NextAbout this interactive presentation


[Please select the EMV ecosystem participant to learn more]

EMV Ecosystem Participants

IssuanceChip Suppliers Inlay

Manufacturers

Card Manufacturers

Application Providers

Issuer Processors

Program Managers

Distribution Points

Personalization Bureaus

Data Prep & Lifecycle

Management

Card Type Approval POS Terminal

Vendors

Retail System Integrators

Value-Added Resellers

ISOs

Terminal Type Approval

Issuers

Issuer Processors

Acquirer Processors

Issuer Payment Gateways

Acquiring Payment Gateways

ATM Suppliers

Consultants Standards Bodies

Regulatory Bodies

Education & Training

Industry Organizations




Acceptance and Transactions

Cardholder

Acquirers

Click on an EMV ecosystem participant to proceed

Exit


Back ExitHome


Issuance Process: Issuers

Program Managers

Distribution Points

Perso Bureaus


Management

ConsultantsStandards

Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Cardholder

Issuer Processors

Role• Provide payment devices (cards) to

customers and manage payment transactions

• Educate and train cardholders• Can also play the role of issuer

processor

Examples• Bank of America• Chase• Silicon Valley Bank• State Employees Credit Union• Travelex• UNFCU• Wells Fargo

Key Links with other Participants• Cardholders• Payment networks• Card manufacturers• Standards bodies• Industry organizations

* Key stakeholder linkages are indicated as non-gray boxes

Back ExitHome


Issuance Process: Payment Networks

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Create specifications to ensure the

highest level of secure payment transactions and interoperability

• Operate networks for routing transactions from processors to issuers

• Operate “on-behalf-of” (or early data) services for issuers to support EMV migration

Examples• American Express• Discover• MasterCard• Visa• Regional debit networks (e.g., NYCE,

PULSE, SHAZAM, STAR)

Key Links with other Participants• All

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder



Back ExitHome


Issuance Process: Chip Suppliers

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Design, manufacture and provide ICs

which are integrated on inlays and/or cards

• Normally will load the operating system (OS) of the chip

Examples• Infineon Technologies• INSIDE Secure• NXP Semiconductors• Samsung• Sony• STMicroelectronics

Key Links with other Participants• Inlay manufacturers• Very large card manufacturers (with card

integration plants)

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuer Processors

Cardholder

Chip Suppliers

Issuance Acceptance and Transactions


Back ExitHome


Issuance Process: Inlay Manufacturers

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Provide card manufacturers with a

durable and convenient solution for the manufacturing of the finished cards

• May or may not load the OS of the chip

Examples• HID Global• Smartrac• SPS (Smart Packaging Solutions)

Key Links with other Participants• Card manufacturers

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Card Manufacturers


Card Type Approval

Issuer Processors

Cardholder

Inlay Manufacturers



Inlay Manufacturers

Chip Suppliers

Back ExitHome


Issuance Process: Card Manufacturers

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Produce smart cards from sheets • Load the applications• Test the cards for quality issues• Package, ship and distribute the cards to

personalization bureau

Examples• CPI Card Group• Gemalto• Giesecke & Devrient• Morpho Cards • Oberthur Technologies• Perfect Plastic Printing • VCT• Watchdata

Key Links with other Participants• Chip suppliers• Inlay manufacturers• Issuers• Standards bodies (EMVCo)• Personalization bureaus

Card Manufacturers

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuer Processors

Cardholder



Back ExitHome


Issuance Process: Application Providers

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Payment (network) schemes that create

product-specific specifications and applications and provide/license applications to issuers through card manufacturers to comply with EMVCo specifications

Examples• American Express AEIPS, ExpressPay• Discover D-PAS• Interac • MasterCard M/Chip, PayPass M/Chip• Visa VSDC, payWave qVSDC

Key Links with other Participants• Card manufacturers• Issuers• Standards bodies (EMVCo)


(EMV)


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder


Back ExitHome


Issuance Process: Issuer Processors

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Entities that facilitate card issuance activities

on behalf of an issuer such as card enrollment, preparing and sending the card personalization information to the card vendor, and maintaining the cardholder database. The issuer processor may provide only card issuing activities or may provide other ancillary services as well (e.g., web front-end administrative and cardholder account management applications, customer service, settlement and clearing, chargeback processing)

Examples First Data FIS Fiserv FSV TSYS Self-processing issuers

Key Links with other Participants• Issuers• Program managers• Card manufacturers• Personalization bureaus• Payment networks

Issuer Processors


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder


Back ExitHome


Issuance Process: Program Managers

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Typically associated with prepaid card programs,

program managers sit between the issuer and the customer and manage most aspects of a co-branded/affinity card program, including marketing and distribution, and either provide or maintain relationships with third-parties for other functions (e.g., transaction processing, websites, call center). The program manager role is not as common for credit and debit card programs but does exist (see the example of the ICBA’s Bancard which offers a turnkey credit card solution for agent community banks through its issuing bank TCM Bank).

• Also known as Group Service Providers / Member Service Providers for credit/debit cards.

Examples Card Services for Credit Unions (CSCU) CO-OP Network Independent Community Bankers of America

(ICBA) Prepaid program managers (e.g., GreenDot,

NetSpend)

Key Links with other Participants• Issuers• Personalization bureaus• Card manufacturers• Payment networks

Program Managers


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder


Back ExitHome


Issuance Process: Data Preparation & Lifecycle Management

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Software used to enhance card management

systems to support cryptographic and application data for EMV

• Services that prepare data for EMV personalization including calculation of card verification values and/or management of keys

• Services that prepare scripts to make updates to cards (e.g., PIN, risk parameters, suspend) at ATMs or POS terminals

Examples• All card and personalization bureaus• Software providers: Datacard• Service providers:

• Bell ID• Cryptomathic• First Data• FIS• Fiserv• Gemalto• Giesecke & Devrient• Oberthur Technologies• Thales

Key Links with other Participants• Issuers• Personalization bureaus• Issuer processors

Data Preparation &

Lifecycle Management


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder


Back ExitHome


Issuance Process: Personalization Bureaus

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Provide personalization services

• Data preparation• Configuration set-up• Fulfillment of personalized chip card, with all

paper inserts; preparation for mailing to customer

• Partner with issuers to:• Define card profile, including risk parameters• Receive and manage card records and keys to

form a personalization record• Generate personalization script • Perform key management activities for EMV,

CVV/CVC, and PINs between card manufacturer and personalization bureau and between issuer and personalization bureau

Examples• CPI Card Group• First Data• FIS• Fiserv

Key Links with other Participants• Issuers• Issuer processors • Card manufacturers• Payment networks• Standards bodies

Personalization (Perso)

Bureaus



• Gemalto• Giesecke Devrient • Oberthur Technologies• TSYS

• Application providers• Data preparation• Consultants• Certification bodies

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Issuance

Issuer Processors

Cardholder

Card Type Approval

Back ExitHome


Issuance Process: Consultants

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Provide technical and business expertise in

deploying EMV technology• Share global experience and knowledge in all

aspects of EMV issuance - from card platforms, to EMV payment applications, key management, configuration, data preparation, personalization and transaction processing

• Provide training

Examples• EMV software providers:

Barnes, Bell ID, Consult Hyperion, ICC Solutions, UL Transaction Security

• Payment brands: American Express, Discover, MasterCard, Visa

• Technology providers:Accenture, Gemalto, Giesecke & Devrient, Morpho Cards, NXP Semiconductors, Oberthur Technologies

• Consulting firms:Accenture, FIME, independent consultants

Key Links with other Participants• Standards bodies• Card manufacturers• Issuers• Payment networks• Application providers• Data preparation

Consultants



• Personalization bureaus• Issuer processors• Regulatory bodies

Program Managers

Distribution Points

PersoBureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder

Back ExitHome


Issuance Process: Distribution Points

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Deliver personalized EMV payment cards

and/or credentials to consumers• Direct mail through centralized issuance• Mass delivery through centralized issuance

– debit, prepaid reloadable• Instant issuance – issuer branch, kiosks,

unattended automated issuance• Over the air – mobile device payment

credential delivery• Need certification for EMV cards vs. mag stripe

cards

Examples• Direct mail: USPS, courier service• Bulk issuance: bank branches, retail stores• Instant issuance: bank branches; public

areas (e.g., retail locations, airports, special events)

Key Links with other Participants• Standards bodies• Card manufacturers• Application providers• Data preparation• Certification bodies• Issuers• Cardholders

Distribution Points



Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder

Back ExitHome


Issuance Process: Standards Bodies

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Ensure physical and logical global

interoperability of EMV capable devices and systems: cards, mobile devices, POS systems, ATMs, acquiring networks, issuer host systems

Examples• ISO – ISO/IEC 7816 - primary standard for

smart cards; ISO/IEC 14443 for contactless smart cards

• EMVCo – payment specifications (security, functionality, interoperability)

• GlobalPlatform – cross-industry standards and specifications layering payment security and functional requirements over the standards in non-payment telecommunication and identification industry

Key Links with other Participants• Chip manufacturers• Card manufacturers• Issuers• Payment networks• Personalization bureaus• Issuer processors• Education and training• Consultants• Application providers• Data preparation • Card type approval

Standards Bodies



Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder

Back ExitHome


Issuance Process: Regulatory Bodies

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Public authority or government agency

responsible for unbiased authority over some area of human activity. For EMV, bank, consumer protection and financial regulatory bodies may be involved.

Examples• No regulatory body is governing EMV at

this point.

Key Links with other Participants• Not applicable

Regulatory Bodies



Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder

Back ExitHome


Issuance Process: Card Type Approval

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Smart card products

• EMVCo certifies the hardware security of the chip. The chip manufacturer obtains the certification from EMVCo.

• The card/chip module supplier is responsible for obtaining certification from the payment brands for the software (OS and payment application) implementation.

• The payment brands have an established multi-tier certification process setting the requirements and using the services of accredited test labs to perform the testing to ensure compliance.

• Payment application configuration and personalization• Payment brands perform certification/testing

of the final configured products before the issuer can start mass issuance. The purpose of this testing is to ensure domestic and international interoperability.

• Issuer is responsible for obtaining personalization certification from the payment brands but may use the assistance of the entity consulting with the issuer for the configuration and/or performing the personalization.

Card Type Approval


* Key stakeholder linkages are indicated as non-gray boxesClick to continue

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder

Back ExitHome


Issuance Process: Card Type Approval

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Examples• EMVCo• Payment brands• Test laboratories: card type approval (see

current list on EMVCo web site)• Applus+ LGAI Technological Center S.A.

(Spain)• CETECOM ICT Services GmbH

(Germany)• Deutscher Sparkassenverlag (Germany)• FIME Europe Test Centre (France)• FIME Asia Test Centre (Taiwan, ROC)• ICT Korea Co., Ltd. (Korea)• RFI Global Services (United Kingdom)• TUV SUD Japan Ltd. (Japan)

Key Links with other Participants• Chip manufacturers• Card/chip module manufacturers• Payment brands• Accredited test labs• Issuers

Card Type Approval



Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder

Back ExitHome


Issuance Process: Education & Training

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

Role• Education for issuer employees on

technology, infrastructure, customer service and other topics to support EMV migration

Examples• See categories for examples.

Payment brands Consultants Card manufacturers Processors Industry organizations Standards bodies

Key Links with other Participants• Issuers• Issuer processors• Program managers




Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Cardholder

Back ExitHome


Issuance Process: Industry Organizations

Role• Education for issuers and merchants• Facilitation of discussion of EMV

migration• Government advocacy• Industry conferences and networking

Examples ATM Industry Association Electronic Transactions Association (ETA) EMV Migration Forum Merchant Advisory Group (MAG) National Retail Federation (NRF) Smart Card Alliance

Key Links with other Participants• All other categories



Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Back ExitHome


Acceptance and Transaction Process: Merchants

Role• Accept EMV cards using payment applications

• In physical and virtual, online and offline locations

• That support an array of contact and contactless card types and form factors

• Add value to point-of-purchase through:• Consumer engagement (loyalty / frequency /

geolocation programs)• Enlightened use of social media that targets

consumer preferences• Provide cardholder education and training

Examples• 7-Eleven• BestBuy• JambaJuice• JCPenney• McDonald’s• Shell Oil • Walgreens• Walmart

Key Links with other Participants• POS terminal vendors• Retail systems integrators• Acquirers• Acquirer processors• ISOs• Value-added solution providers• Payment networks * Key stakeholder linkages are indicated as non-gray boxes

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Back ExitHome


Acceptance and Transaction Process: POS Terminal Vendors

Role• Provide standalone POS terminals and

integrated EMV card readers• Create EMV-compliant hardware and

operating system platforms• Maintain GlobalPlatform standards• Support single and multiple data elements

Examples• Castles Technology• Equinox• Ingenico• OTI• VeriFone

Key Links with other Participants• Merchants• Retail systems suppliers• ISOs• Acquirers• Acquirer processors• Standards bodies (EMVCo)• Certification bodies• Payment networks


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

POS Terminal Vendors

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Back ExitHome


Acceptance and Transaction Process: Retail System Integrators

Role• Facilitate interoperability among devices

and payment card schemes• Maintain GlobalPlatform standards• Create infrastructure for payment card

processing and ancillary services (e.g., loyalty, authentication, inventory management)

Examples• Accenture• Cubic• IBM• Radiant Technologies

Key Links with other Participants• Merchants• POS terminal vendors• Acquirers• Acquirer processors• ISOs• Payment networks


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Retail System

Integrators

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Back ExitHome


Acceptance and Transaction Process: Acquirers

Role• A payment network member responsible for

signing merchants, acquiring transaction data and ensuring that merchants are paid, including: • Underwriting merchants to accept network-

branded cards• Acquiring transaction data from merchants• Providing the means to authorize valid

transactions• Facilitating transaction clearing and

settlement with timely delivery of payment card revenue to merchants minus interchange and related service fees

• Managing risk, exceptions, refunds and disputes

Examples• Bank of America• Chase Paymentech• Wells Fargo

Key Links with other Participants• Merchants• POS terminal vendors• Retail systems integrators• ISOs


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Acquirers

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Back ExitHome


Acceptance and Transaction Process: Acquirer Processors

Role• Entities that process transactions on behalf of

acquirers by connecting merchant transactions to payment networks by: • Providing the POS device• Securely routing transaction from POS

device through POS payment gateway to payment network

• Managing transactions from authorization to clearing to settlement

Examples• Chase Paymentech• Elavon • First Data• Global Payment Systems• Heartland Payment Systems• RBS WorldPay (Royal Bank of Scotland)• TSYS

Key Links with other Participants• POS terminal vendors• Acquirers• ISOs• Payment networks


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Acquirer Processors

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Back ExitHome


Acceptance and Transaction Process: Acquiring Payment Gateways

Role• Facilitate payment transactions between

merchants and processors• Securely route transactions from merchant

POS devices or other end-points to acquirer processors

• Provide many-to-many connectivity between point of use applications and processors

• Provide value-added payment products and services to merchants, ISOs, and other players

Examples• Apriva• Authorize.net• eProcessing• IP Commerce• iPayments• PayWare Connect• TNS

Key Links with other Participants• Acquirer processors• Acquirers• ISOs• POS terminal vendors• Merchants• Consultants• Standards bodies


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors


Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors


ATM Suppliers


Industry Organiza-

tions

Acquirers


Cardholder



Back ExitHome


Acceptance and Transaction Process: ISOs

Role• Third-party resellers of an acquiring

processor’s services• ISOs must be aware of and communicate

and educate the changes to their merchant account clients. ISOs often provide the POS terminal for small and medium-sized businesses and will need to work with the merchant to replace the existing terminals with EMV-capable terminals.

• Not unique to EMV, ISOs, along with acquiring banks, assume much of the liability and risk as they underwrite the merchants.

Examples• There are thousands of ISOs representing

acquirer processors; no single ISO is of significant size.

Key Links with other Participants• Acquirer processors • Merchants


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

ISOs

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Back ExitHome


Acceptance and Transaction Process: Payment Networks

Role• Act as network processor and switch for credit

and debit transactions• Provide applications for contact and

contactless• Operate networks for routing transactions from

processors to issuers• May operate “on-behalf-of” (or early data)

services for issuers to support EMV migration• May serve as issuer processor

Examples (Credit and/or Debit)• American Express• Discover• JCB• MasterCard• NYCE • PULSE• SHAZAM• STAR• Visa• Other regional debit networks


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

IssuersAcquirer

Processors


ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Issuer Processors


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Acceptance and Transaction Process: Payment Networks

Key Links with other Participants• Acquirers • Acquirer processors (indirectly through

acquirer member of which the processor is a member service provider)

• Issuer processors• Issuer payment gateways


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

IssuersAcquirer

Processors


ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Issuer Processors


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Acceptance and Transaction Process: Value-Added Resellers

Role• Not ISOs, but entities that provide POS

software/hardware to various merchant categories (e.g., the food service industry, hospitality industry)

• Developers of custom POS software solutions that read track data, form the authorization request and send it to the acquirer/processor

• Interface can be with developer’s POS system or another supplier’s.

Examples• ACI• Apple• Micros• IBM• NCR• Oracle• Wincor Nixdorf

Key Links with other Participants• Acquirers• Merchants• ISOs• POS terminal suppliers• Acquiring gateways


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Value-Added Resellers

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

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Acceptance and Transaction Process: Issuers

Role• A financial institution that issues a

customer account that is tied to network-branded EMV card and/or payment device – credit, debit or prepaid. Very few issuers self-process but rely instead on third-party processors and card personalization bureaus.

• If self-processing, must be sure that its processing software supports authorization request responses for EMV originated transactions

Examples• Many banks are in the process of issuing

EMV cards. Eventually all issuers will convert to EMV as more and more merchants convert.

Key Links with other Participants• Issuer processors


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Issuers (Acceptance)

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

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Acceptance and Transaction Process: Issuer Processors

Role• Facilitates the response to the

authorization request from the merchant on behalf of the issuer

Examples• First Data• FIS• Fiserv• FSV Prepaid• Galileo Prepaid• TSYS

Key Links with other Participants• Issuers• Payment networks• Merchants• Acquirers• Acquirer processors


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Issuer Processors

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

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Acceptance and Transaction Process: Issuing Payment Gateways

Role• Conduit from the card network to the issuer

processor where a third party processor is involved in a prepaid card program

• Ensure third party issuer processor acquires appropriate responses from both ends during an authorization request

• Securely route transactions from card network to the issuing platform (issuer processor or issuer)

• Role can be as an independent gateway or can be offered by the issuer processor

• American Express is excluded from this as they do not allow third parties to program manage or issue cards

Examples• eFunds/FIS• Star Processing Inc.• U.S. Bancorp

Key Links with other Participants• Payment networks• Issuers• Issuer processors


Program Managers

Distribution Points

PersoBureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors


Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors

IssuerPayment Gateways


ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

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Acceptance and Transaction Process: Consultants

Role• Provide technical and business expertise in

deploying EMV technology• Share global experience and knowledge in all

aspects of EMV acceptance - from POS EMV kernel to payment transaction messaging, issuer scripting and EMV host transaction processing

Examples• EMV software/tools providers: Barnes, ICC

Solutions, UL Transaction Security• Payment brands: American Express,

Discover, MasterCard, Visa• Technology providers:

POS and ATM vendors• Consulting firms:

FIME, freelance consultants

Key Links with other Participants• Merchants• Retail systems integrators• Acquirers• Acquirer processors• Payment networks• Issuer processors• Issuers


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Consultants

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

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Acceptance and Transaction Process: Standards Bodies

Role• Ensure physical and logical global

interoperability of EMV capable devices and systems: cards, mobile devices, POS systems, ATMs, acquiring networks, issuer host systems

Examples• ISO – ISO/IEC 7816 - primary standard for

smart cards, ISO/IEC 14443 for contactless smart cards

• EMVCo – payment specifications (security, messaging, interoperability)

• GlobalPlatform – messaging specifications, key management

Key Links with other Participants• Merchants• POS terminal vendors• Retail systems integrators• Acquirers• Acquirer processors• Issuer processors• Issuers• ATM suppliers


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Standards Bodies

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

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Acceptance and Transaction Process: Terminal Type Approval

Role• Perform Level 1 and Level 2 testing and approval of

POS devices• Perform additional brand-specific contactless testing

of POS devices

Examples• EMVCo • American Express, Discover, MasterCard, Visa• Testing laboratories: terminal type approval (see

current list on EMVCo web site)• Applus+ LGAI Technological Center S.A. (Spain)• Beijin Unionpay Card Technology Co., Ltd (China)• CETECOM ICT Services GmbH (Germany)• CETECOM MOVON Ltd (Korea)• ELITT (France)• FIME Europe Test Centre (France)• FIME Asia Test Centre (Taiwan, ROC)• ICT Korea Co., Ltd. (Korea)• RFI Global Services (UK)• TUV SUD Japan Ltd. (Japan)• TUV SUD Product Service Ltd (UK)• VOB-ZKD (Germany)

Key Links with other Participants• Merchants• POS terminal vendors• Acquirers• Acquirer processors• Accredited test labs• Payment networks• Standards bodies


Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors

Terminal Type

Approval

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers

Consultants


Industry Organiza-

tions

Acquirers


Cardholder

Standards Bodies

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Acceptance and Transaction Process: Industry Organization

Role• Education for merchants, ISOs, acquirer

processors and others on technology, infrastructure, customer service and other topics to support EMV migration

Examples• See categories for examples

Payment brands Consultants Processors POS terminal vendors Retail systems integrators Industry organizations



Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuance

Issuer Processors



Cardholder

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers

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Acceptance and Transaction Process: Industry Organizations

Role• Education for issuers and merchants• Facilitation of discussion of EMV migration• Government advocacy• Industry conferences and networking

Examples ATM Industry Association Electronic Transactions Association (ETA) EMV Migration Forum Merchant Advisory Group (MAG) National Retail Federation (NRF) Smart Card Alliance




Issuance

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuer Processors

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Acceptance and Transaction Process: ATM Suppliers

Role• Upgrade of ATM terminals to support

contact and/or contactless EMV chip transactions

• Both hardware and software must be certified for EMV acceptance

Examples• Diebold• Fujitsu• NCR• Tidel• Triton• Wincor-Nixdorf

Key Links with other Participants• ATM operators• Certification bodies• Payment networks (debit)


ATM Suppliers

Issuance

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuer Processors

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Acceptance and Transaction Process: ATM Operators

Role• Responsible for contracting with ATM

suppliers to provide an EMV-compliant ATM terminal

• Provide consumers with ability to do banking activities

Examples• Financial institutions• Independent operators (e.g., Cardtronics)

Key Links with other Participants• Cardholders• ATM suppliers• Payment networks (debit)


Issuance

Terminal Type

Approval

Retail System

Integrators

Value-Added

Resellers

ISOsPOS

Terminal Vendors

Issuers

Issuer Processors

Acquirer Processors



ATM Suppliers



Industry Organiza-

tions

Acquirers


Cardholder

Program Managers

Distribution Points

Perso Bureaus


Management


Bodies

Regulatory Bodies



Chip Suppliers

Inlay Manufacturers

Card Manufacturers


Card Type Approval

Issuer Processors

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Smart Card AllianceAbout the Smart Card Alliance

The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology. The Alliance invests heavily in education on the appropriate uses of technology for identification, payment and other applications and strongly advocates the use of smart card technology in a way that protects privacy and enhances data security and integrity. Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart card technology, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America.

Smart Card Alliance Payments Council Member Contributors

Special thanks go to Dori Skelding, Chase Card Services, who led this project. Member contributors included:

Philip Andreae, Accenture Peter Ho, Wells Fargo Bob Murray, Acumen Building Services Debbie Bartoo, Bank of America Simon Hurry, Visa Inc. Susan Pandy, NACHA Nancy Baunis, Connexem Consulting Brent Iles, Datacard Group Sharon Pazlar, Fiserv Louis Bianchin, Valid Liz Jackson, American Express Nick Pisarev, Giesecke & Devrient Matt Bowe, Morpho Ryan Julian, Discover Financial Services Louis Portillo, American Express Patrick Comiskey, NXP Semiconductors Grace Jung, Interac Peter Quadagno, Quadagno & Associates Deana Cook, Chase Card Services Dale Laszig, Independent Sanjiv Rawat, Giesecke & Devrient Jose Correa, NXP Semiconductors Paul Legacki, Infineon Technologies JC Raynon, VeriFone Fred Csaky, FIS James Lock, JPMorgan Chase Bill Robertson, Apriva Jo Ann Davaris, American Express Don Malloy, NagraID Security Dori Skelding, Chase Card Services Terry Dooley, SHAZAM Oliver Manahan, MasterCard Worldwide Ellie Smith, Discover Financial Services Mike English, Heartland Payment Systems Ken Mealey, American Express Garfield Smith, Oberthur Technologies Allen Friedman, TSYS Cathy Medich, Smart Card Alliance Brian Stein, Accenture Ron Hempel, JPMorgan Chase Andra Munteanu, Discover Financial Services Astrid Wang-Reboud, Gemalto

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Smart Card AllianceAbout the Payments Council

The Smart Card Alliance Payments Council focuses on facilitating the adoption of chip-enabled payments and payment applications in the U.S. through education programs for consumers, merchants, issuers, acquirers/processors, government regulators, mobile telecommunications providers and payments service providers. The group brings together payments industry stakeholders, including payments industry leaders, merchants and suppliers, and works on projects related to implementing EMV, contactless payments, NFC-enabled payments and applications, mobile payments, and chip-enabled e-commerce. The Council’s primary goal is to inform and educate the market about the value of chip-enabled payments in improving the security of the payments infrastructure and in enhancing the value of payments and payment-related applications for industry stakeholders. Council participation is open to any Smart Card Alliance member who wishes to contribute to the Council projects.

Copyright Notice

Copyright © 2013 Smart Card Alliance, Inc. All rights reserved. Reproduction or distribution of this publication in any form is forbidden without prior permission from the Smart Card Alliance. The Smart Card Alliance has used best efforts to ensure, but cannot guarantee, that the information described in this report is accurate as of the publication date. The Smart Card Alliance disclaims all warranties as to the accuracy, completeness or adequacy of information in this report. This resource does not endorse any specific product or service. Product or service references are provided to illustrate the points being made.

The EMV ecosystem described in this resource is based upon Smart Card Alliance Payments Council research and analysis as of publication time. Any changes or updates will be communicated in future publications on the EMV Connection web site (http://www.emv-connection.com), as needed.

Trademark NoticeAll registered trademarks, trademarks, or service marks are the property of their respective owners.

© 2012 UL LLC S The EMV Ecosystem An Interactive Experience for the Payments Community Smart Card...

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