EMV is a set of international standards that defines the interoperability of transactions between chip based payment devices such as cards, key fobs and smart phones with payment acceptance terminals across the international payments landscape.
EMV enables payment transactions through the introduction of cryptographic functions and dynamic data. The cryptographic functions allow the terminal or issuer to verify the authenticity of the card. The dynamic data is unique to each transaction and cannot be replicated. This devalues the transaction data in flight and reduces the risk of counterfeit fraud.
The flow of an EMV transaction is significantly different than for a magnetic stripe transaction. Unlike a magnetic stripe transaction, there is a considerable amount of communication that occurs between the card and the terminal in an EMV transaction. To complete a chip transaction, the card and the terminal complete a series of steps:
- POS initiates an EMV transaction to the application managing the EMV enabled device.
- The cardholder inserts chip card into device.
- The chip card and card reader negotiate application selection:
- determine transaction type (credit, debit)
- reads application parameter data
- determines the Card Verification Method (PIN, Signature, none)
- Chip generates ARQC and passes from CED to the POS application to build a complete Authorization request (plus cryptogram)
- Authorization request is sent from the POS application to Processor (Vantiv)
- Authorization request is sent from Processor to Issuer
- Authorization response with ARPC is sent from Issuer to Processor
- Authorization response is sent from Processor to POS application to EMV enabled device; device confirms response with chip on card and passes the application response message back to POS and a receipt is generated
- Card is removed from EMV device
This additional processing requires software vendors to be diligent in their designs and implementations to ensure that transactions occur efficiently. Vantiv provides a format preserving token with every card-present response, which can be shared seamlessly with mobile and card not present environments to enable OmniCommerce applications.
For enterprises adding EMV to their payment systems, Vantiv offers a direct end-to-end integration, test and certification environment called Vantiv VIABLE (Vantiv in a Box Leverage EMV). VIABLE helps developers accelerate the process of becoming qualified and approved for certification for Visa, MasterCard, AMEX and Discover.
Vantiv also provides semi-integrated solutions for developers looking to implement EMV without the requirements of direct card brand certifications. You can learn more about semi-integrated solutions that already support EMV by visiting developer point of sale resources.
Additional resources are available to Vantiv ONE members.