:: What chip and PIN means for you How can merchants ensure that they are fully compliant with new regulations without incurring the huge costs associated with Chip and Pin? Many merchants in the restaurant, hotel, car hire and retail sectors now realise that with FEXCO DCC, not only are they able to offer a convenient customer service to their international customer but also generate a new revenue stream. FEXCO DCC, which if implemented in an environment that handles a significant volume of foreign cards, can help make the business case. The funds received from the gain on the foreign exchange can then be allocated to the fund to help pay for the implementation of Chip and PIN. The retail and banking industries have joined forces for a ground-breaking programme called chip and PIN to combat the problem of credit and debit card fraud. There are two elements involved in making a plastic card transaction secure. The first is to ensure that the card is genuine; the second that the person presenting the card is the true owner. Chip does the former and PIN does the latter. The chip therefore protects against counterfeit fraud and the PIN against the fraudulent use of lost and stolen cards and those intercepted in the post. Chip and PIN is a major development in combating fraud and is expected to dramatically reduce fraud losses. By 2005 most credit and debit card transactions, where a cardholder has been issued with a chip and PIN card and is present during the transaction, will be verified by the customer keying in a Personal Identification Number (PIN) rather than by signing a paper receipt. The Chip and PIN Programme is the biggest change in the way we pay since decimalisation. To put the system into action will be a task of exceptional scale, involving not just technology changes but also a change in the payment behaviour of some 42 million cardholders and 1.5 million retail staff. The massive programme will see more than 850,000 retailer terminals, 120 million cards and 40,000 cash machines upgraded. Point-of-sale PIN terminals will be of various shapes and sizes like tills are now. Some PIN terminals will have portable or cordless PIN pads, like those often seen in restaurants in France. :: General Information for the T & E Sector :: Top Tips for introducing Chip and Pin :: Behind the Glass :: PIN Bypass :: Fallback Transactions :: Always Off-Line Terminals :: EMV Q & A’s General Information for the T & E Sector Top Tips for introducing Chip and Pin Behind the Glass The purpose of this paper is to describe the design considerations that will affect the customer and cashier experience relating to card acceptance at the Point of Sale in a ‘Secure Behind the Glass’ environment. These environments will be encountered where, for various reasons, the cashier is separated from the cardholder by a security screen in for example Bank branches, Bureau de Change and Petrol Station ‘Night Windows’. PIN Bypass The purpose of this guideline is to provide vendors, acquirers, retailers and service providers with information on the PIN Bypass facility that is available within the EMVCo specifications, considerations on whether it should be supported by the terminal, how it may be implemented and how it may subsequently be withdrawn from use. UK banks have agreed to allow PIN Bypass in order to assist in the smooth transition from signature CVM to PIN at PoS; other countries that have not implemented the facility have experienced major customer service problems. Fallback Transactions During the transition to use of PIN at Point of Sale, it is recommended that terminals should permit fallback to signature in the event that the PIN becomes locked or the cardholder is unable to remember the PIN. In these cases the transaction must be sent online to the issuer or its agent for authorisation. Always Off-Line Terminals The EMV process expects the terminal to seek an authorisation from the issuer where the card requests it. All terminals in most environments should therefore have the ability to connect to the issuer online. There are, however, a few retail environments where it is impractical or not cost-effective to support on-line authorisation. These include terminals on board trains, ferries, ships and aircraft. These terminals will identify their ‘type’ to cards as Off-Line Only EMV Q & A’s BACK TO TOP

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