USA issuers announce EMV cards (Chip & PIN -or- Chip & Signature).
Jan 13, 2012, 9:46 pm
#571
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Exactly. I've tested this. When I forgot the PIN to my chip-pin card, I lost the ability to swipe and sign. The card became useless. I swiped, and the machine rejected the card because the track data apparently disclosed the fact that the card had an EMV chip. Even though I wanted the product and the merchant wanted my money, the transaction was impossible because of the track data and how the merchants PoS device was (commonly) inadvertently configured.
Jan 13, 2012, 10:03 pm
#572
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Jan 14, 2012, 4:15 am
#573
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Some would disagree with you, and consider the "proper" configuration to be the one that yields the highest profit for the merchant, which is not necessarily the same configuration that minimizes fraud when the yield is higher.
Only if configured as such. If the user configures it to accept the track data without regard to EMV presence, then it's supposed to do so.
Jan 14, 2012, 4:29 am
#574
Join Date: Aug 2010
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Do you know the price? You wrote quite a lot of text and then didn't give a price.
Sure, but the demand for the EMV terminals is no greater than it was pre-changeover. In both cases the product is manufactured in significant numbers, so that factor alone would not change the cost. Competition would be a better factor to look at. How many players are involved in EMV terminal production?
Sure, but the demand for the EMV terminals is no greater than it was pre-changeover. In both cases the product is manufactured in significant numbers, so that factor alone would not change the cost. Competition would be a better factor to look at. How many players are involved in EMV terminal production?
Jan 14, 2012, 10:35 am
#575
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The church I work at had their terminals recently replaced. They didn't request anything special, and it looks to me like it has a chip reader.... No idea if it's active. Next time I call them I'll ask them if it will handle a chip card. Anyone with a chip card in northern Delaware want to stop by and make a donation? 
Jan 14, 2012, 5:58 pm
#576
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Perhaps the possibility exists that merchants are given disincentives by Visa/MC for doing so? The only terminals I've seen that can easily bypass the EMV chip are Chinese ones. Every time I use my UnionPay EMV card in Shanghai the terminal will pop up "Is this an EMV card?" and the merchant pushes "no" to just use the mag-stripe. Of course, I have to type in a PIN and sign either way.
Jan 14, 2012, 6:33 pm
#577
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Sure... this requirement is contained within the Visa International Operating Regulations, http://usa.visa.com/download/merchan...tions-main.pdf page 444:
An Acquirer must ensure that an EMV-Compliant Chip-Reading Device:
- Reads the Chip if an EMV- and VIS-Compliant Chip is present, and does not allow the Chip- Reading Device to override the Chip Authorization controls by manually prompting the device to use the Magnetic Stripe. The Magnetic Stripe may be read only if the Chip is not EMV- and VISCompliant, or the Chip or Chip reader is inoperable.
- Reads the Chip if an EMV- and VIS-Compliant Chip is present, and does not allow the Chip- Reading Device to override the Chip Authorization controls by manually prompting the device to use the Magnetic Stripe. The Magnetic Stripe may be read only if the Chip is not EMV- and VISCompliant, or the Chip or Chip reader is inoperable.
Jan 14, 2012, 6:49 pm
#578
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The church I work at had their terminals recently replaced. They didn't request anything special, and it looks to me like it has a chip reader.... No idea if it's active. Next time I call them I'll ask them if it will handle a chip card. Anyone with a chip card in northern Delaware want to stop by and make a donation?
Jan 14, 2012, 7:00 pm
#579
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What's the point of shipping the terminals without the necessary software?
Jan 14, 2012, 7:50 pm
#580
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That being said, that terminal along with most other modern terminals can have their software updated remotely which would allow EMV functionality to be enabled at a later date if required.
Jan 14, 2012, 10:49 pm
#582
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VISA timeline for chip acceptance
Back in August 2011 VISA published a timeline website requiring chip acceptance by April 2013, at least that is how I read it.
http://usa.visa.com/merchants/risk_management/cisp.html
This also discusses other landmark dates for other technologies.
http://usa.visa.com/merchants/risk_management/cisp.html
This also discusses other landmark dates for other technologies.
Jan 15, 2012, 10:40 am
#583
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Sure... this requirement is contained within the Visa International Operating Regulations, http://usa.visa.com/download/merchan...tions-main.pdf page 444:
An Acquirer must ensure that an EMV-Compliant Chip-Reading Device:
- Reads the Chip if an EMV- and VIS-Compliant Chip is present, and does not allow the Chip- Reading Device to override the Chip Authorization controls by manually prompting the device to use the Magnetic Stripe. The Magnetic Stripe may be read only if the Chip is not EMV- and VISCompliant, or the Chip or Chip reader is inoperable.
- Reads the Chip if an EMV- and VIS-Compliant Chip is present, and does not allow the Chip- Reading Device to override the Chip Authorization controls by manually prompting the device to use the Magnetic Stripe. The Magnetic Stripe may be read only if the Chip is not EMV- and VISCompliant, or the Chip or Chip reader is inoperable.
As a side note I asked HSBC Premier USA again when they would be offering chip cards and still no news; although they sent me a new-issue MasterCard recently that is a much more pleasing color and much thinner than my previous card.
Jan 15, 2012, 11:28 am
#584
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I wonder how open to interpretation that requirement is. In New Zealand I've seen terminals prompting the merchant to allow signature validation instead of PIN. The chip-reading device is the PIN-pad held in the customer's hand (with both chip and mag-stripe reading capability), while the merchant terminal is the POS system or the 'base' of the terminal. This way the customer can't override it, but the merchant can. Presumably their merchant agreement has disincentives for doing so.
For New Zealand, on page 221 of the same document:
PIN as Cardholder Verification Method in New Zealand – Issuer Requirements – AP Region
In New Zealand, all newly-issued and re-issued Visa Cards must be issued with a PIN as the preferred CVM for Chip-Initiated Transactions.
Effective 1 April 2012, when PIN bypass is performed for a Chip-initiated Transaction on a New Zealand issued PIN-Preferring Chip Card, the Transaction must be sent Online to the Issuer or the Issuer's agent. An Issuer must respond with a Decline Response to a domestic PIN Bypass Transaction
In New Zealand, all newly-issued and re-issued Visa Cards must be issued with a PIN as the preferred CVM for Chip-Initiated Transactions.
Effective 1 April 2012, when PIN bypass is performed for a Chip-initiated Transaction on a New Zealand issued PIN-Preferring Chip Card, the Transaction must be sent Online to the Issuer or the Issuer's agent. An Issuer must respond with a Decline Response to a domestic PIN Bypass Transaction
In simple terms, an EMV card has a list of acceptable CVMs, in order of preference. This is set by the issuer. Depending on the market, you're card could be set as:
- Offline PIN
- Online PIN
- Signature
- No CVM required
(For the US Chip and Signature cards that are being issued, the list is likely just Signature and No CVM required)
When you insert the card, it will negotiate with the terminal, which will also have a list of acceptable CVMs. The card will basically go one-by-one from its most preferred CVM and if the terminal also supports that, that is what gets used for the transaction. Doing a 'PIN Bypass' simply causes the terminal and card to renegotiate for a different CVM.
Jan 15, 2012, 11:30 am
#585
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Back in August 2011 VISA published a timeline website requiring chip acceptance by April 2013, at least that is how I read it.
http://usa.visa.com/merchants/risk_management/cisp.html
This also discusses other landmark dates for other technologies.
http://usa.visa.com/merchants/risk_management/cisp.html
This also discusses other landmark dates for other technologies.
In other words, as of that date any US merchant who wants to enable EMV processing should be able to do so as the backend network is required to support it.