Implementing EMV at the ATM: An UpdateA workshop presented by the ATMIA and the US Payments Forum (ATM Working Committee)
14 February 2017
Implementing EMV at the ATM: An Update
• Moderator:– Deborah Spidle, Director EMV Solutions, Paragon Application
Systems• Panelists:
– Marc Cleven, Sr. Director, Global Chip Operations, Visa– Craig Demetres, ATM Product Manager, JP Morgan Chase– Dave Krzic, ATM & Debit Services, Elan Financial Services– Ron Maceri, ATM and Security Solution Manager, NCR– Brenda Pino, VP Physical Channels Operations, BMO Harris
Implementing EMV at the ATM: An Update
• This workshop is not intended to be “EMV 101”– We assume you already have a basic familiarity with EMV
concepts and terminology– Resources and references will be provided at the end of this
session• This PPT will be provided to all attendees at a later date
Antitrust Statements
• By registering for this workshop, you agreed that you have read and will comply with the following US Payments Forum and ATMIA Antitrust Compliance Statement and all applicable USPF bylaws, Smart Card Alliance Antitrust Guidelines, and ATMIA Antitrust Guidelines: – Meetings of USPF and/or ATMIA members and participants necessarily involve
cooperation of industry competitors. Accordingly, it is the express policy of USPF and ATMIA to require that all of their activities be conducted strictly in accordance with applicable antitrust laws. It is therefore extremely important that attendees adhere to meeting agendas, comply with the applicable USPF bylaws, the Smart Card Alliance Antitrust Guidelines, and the ATMIA Antitrust Guidelines, and at all times avoid the exchange of information that is prohibited under applicable US state, federal or foreign antitrust laws.
– Examples of matters that may not be discussed include: price fixing, agreements to allocate customers or markets, boycotts and other "concerted refusals to deal”, as well as discussion of or agreements regarding discriminatory pricing, discounts, awards, penalties, compliance and enforcement programs and other related matters.
• If you have questions about these matters, please contact your company counsel, or (a) if you are an USPF member, feel free to contact USPF Executive Director Randy Vanderhoof, who will put you in contact with USPF counsel; or (b) if you are a ATMIA member, feel free to contact ATMIA Executive Director David Tente, who will put you in contact with ATMIA counsel.
Disclaimers
• This workshop is intended to share experiences and lessons learned by some ATM owners before, during, and after their EMV migrations.
• This workshop will not cover every scenario you may encounter, or every task you may need to perform, during your EMV migration.
• Your environment, business requirements, policies, etc. may vary from those of others attending this workshop.
• Some of the needs of a specific ISO or Affiliate Independent ATM Deployer (IAD) will vary from those of a financial institution ATM deployer.
• Attendees are strongly encouraged to consult with their manufacturer, processor, other ATM industry partners, and appropriate professional and/or legal advisors regarding all applicable rules, requirements, procedures, and implementation decisions associated with EMV.
• The US Payments Forum and the ATMIA are not responsible for any of the views, opinions, suggestions, or other information shared or otherwise made available in connection with the workshop (“information”), or for any actions you may or may not take based on such information. The information does not constitute legal advice and should not be relied on for any legal purpose, whether statutory, regulatory, contractual, or otherwise. All warranties of any kind are disclaimed, including all warranties relating to or arising in connection with the use of or reliance upon any of the information. Any person that uses or otherwise relies in any manner upon the information does so at their own sole risk.
Agenda
• Liability shifts• Current state of the US ATM EMV migration• Implementation considerations• Chargebacks• Troubleshooting tips• Lessons learned and suggested best practices• Consumer experiences• After EMV… what?• Resources and references• Q&A
Liability Shifts
• What are the liability shifts that are relevant for ATMs?– Pulse & Shazam: October 1, 2016– MasterCard: October 21, 2016– Visa and Discover: October 1, 2017
• Point of interest: AFD liability shift has been moved to 2020• What is the impact of the liability shifts on the US ATM
community?• Benefits of migrating ATMs to EMV include
– Avoid potential liability in the event of counterfeit card fraud– Higher transaction approval rates, especially for cross‐border
transactions– Support for dynamic data provides the foundation for future
technology• Potential impacts if you delay or don’t migrate
– How can an ATM owner assess their risk and the amount of potential chargebacks?
Current State of US ATM EMV Migration
• MasterCard*– 50% of market ATMs are EMV‐enabled and are processing
EMV transactions– More than 40% of MasterCard‐processed ATM transactions
are now chip– Fallback rates for ATM are running about 6‐7% of chip
transactions
*Source: MasterCard, January 3, 2017
Current State of US ATM EMV Migration
• Visa– Approx. 25% of all US ATMs are actively supporting Visa chip
cards
Current State of US ATM EMV Migration
• What is the panel seeing from– Other networks– Financial institutions– Processors– Vendors
• Is there a hardware shortage/backlog?
Implementation Considerations
• List of AIDs– What has been certified by the FI with the payment
network, or by the acquirer with the payment network– What can happen when presented with an “unknown” AID
• Filtering of AIDs for debit– Enabling automatic selection of US Common Debit AID
• Pass all of the required EMV tags from the ATM to the processor or host system
Implementation Considerations
• Ensuring data integrity– Send the correct Track 2 data
• Send mag stripe data if chip not read; send chip data if chip read– Indicate the correct terminal entry capability and how data
was obtained (mag stripe vs. chip)– Send the correct transaction code
Implementation Considerations
• Monitor transaction activity– Know the pre‐EMV implementation auth/decline rate so you
can compare to post‐EMV implementation rate• Fallback
– Work with your acquirer and/or sponsor back to make sure you are familiar with the specific policies and procedures for each payment network related to fallback, including any penalties for excessive fallback rates
– Work with your acquiring processor to monitor fallback rates– Keep the card reader clean
• Review decline reason codes
Chargebacks
• What are we seeing since the October liability shift?• Work with your acquirer and/or acquiring processor to
understand the procedures for handling chargebacks and representments– Make sure you are familiar with the specific chargeback
policies and procedures for each payment network– Review each chargeback to make sure it’s legitimate– Make sure you are familiar with the specific representment
policies and procedures for each payment network
Troubleshooting Tips
• Use existing processes and common sense• Determine the scope of the problem
– Are problems occurring only at a specific ATM, or across multiple ATMs?
– Are problems occurring only with cards having a specific BIN (i.e. a particular issuer)?
– Are problems occurring when a specific network is involved, or with all networks?
– Are problems occurring when a specific AID is involved, or with all AIDs?
• Gather data (logs, audits)• Trace transaction from ATM to issuer
Lessons Learned and Best Practices
• What did you do as part of your project that worked out really well?
• What did you NOT do, that you wish you had done?
Reviewing the Consumer Experience
• What kind of guidance can be provided to consumers?– Signage on/around ATM– Screen messaging
• Are consumers leaving cards behind?– Card before cash, or cash before card?
After EMV … What?
• Unlike the static magnetic stripe, EMV supports “dynamic data”, which is the foundation for many other technologies
• Will ATMs need to support one or more of the following:– Contactless interface on dual interface EMV/chip cards– Contactless EMV in non‐card form factors, e.g. watches– Mobile– QR codes– One‐time passwords/”Code to the Phone”– Biometrics
• “Most payment methods never really die”– Terminal owners may need to support multiple forms of
payment• What will benefit both the consumer and the ATM owner?
Resources and References
• US Payments Forum web site (www.emv‐connection.com)– Standards and Terminology – EMV 101: Fundamentals of EMV Chip Payments– Implementing EMV at the ATM (white paper)– Implementing EMV at the ATM (recorded webinar)– Implementing EMV in the US: How the US Common Debit
AIDs Facilitate Debit Transaction Routing and Ensure Durbin Compliance
– Chip card videos– EMV Chargeback Best Practices (white paper and recorded
webinar)• www.gochipcard.com• www.atmia.com
Q&A
Thank you for attending!