Card Technology - ATMIAEMV Encoder included EMV Encoder included EMV Encoder included EMV Encoder...
Transcript of Card Technology - ATMIAEMV Encoder included EMV Encoder included EMV Encoder included EMV Encoder...
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Card TechnologyNovember 6, 2017 / Jennifer Baur, Conduent & Jamie Topolski, Fiserv
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Recent USAToday Headline:Wisconsin company to install rice-sized microchips in employees1
1 – Bowerman, Mary. “Wisconsin company to install rice-sized microchips in employees” USAToday.com, https://www.usatoday.com/story/tech/nation-now/2017/07/24/wisconsin-company-install-rice-sized-microchips-employees/503867001/ (accessed July 28, 2017).
“Welcome to the future?
A Wisconsin technology company is offering its employees microchip implants that can be used to scan into the building and purchase food at work. Whether or not to get a chip is up to the employee to decide.”
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Agenda
• Where did we start?– Brief History of Food Stamps/EBT
• Where are we now?– EMV Technology – Overview, impact to EBT– Instant Issuance Options & Uses
• What’s the future hold?– Online Shopping Pilot Update– Mobile Account Access– Mobile Wallets/Virtual Cards – Biometrics
• Wrap Up
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Where did we start?
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EBT Highlights
1984 -88 1990 1993 2000 2008 2016
EBT Pilots1984: 1st pilot started inReading, PA
1988: Pilots begin –Albuquerque, NM; RamseyCounty, MN; & Park CircleDistrict of Baltimore, MD
1st Statewide ProgramMD expands program statewide
SNAP2008 Farm Bill: the FoodStamp program is renamedto Supplemental NutritionAssistance Program (SNAP)
Greater emphasis on nutritionbegins
EBT EstablishedLeland Domestic Hunger Relief Actestablishes EBT as alternative topaper food stamps
Amends Food Stamp Act of 1977
FNS develops EBT regulations
Interoperability/ PortabilityCongress passes Interoperability andPortability Act
Online Purchasing Pilot
FNS issues RFV to participatein an Online Purchasing Pilot.
Work is underway by retailersand processors, with pilot tostart in 2018.
1994 1996EBT Mandate
Personal Responsibility and WorkOpportunity Reconciliation Act ofAugust 22, 1996
States must implement before October1, 2002 (41 implemented in 2001; lastconversion in 2003)
1st Multi-State CoalitionStarted with SAS (Southern Allianceof States) - 8 states, procured byDept. of Treasury
1995: 3 additional (NAS, WSEA,ND/SD)
2020WIC Mandate
October 1, 2020 – all WICstate agencies required toimplement EBT
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Where are we now?
EMV Overview
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What is EMV™? How does it reduce fraud?
• Standard for secure payment transactions
• Developed by Europay, MasterCard and Visa in 1995
• Every payment network must develop or license a compatible payment application
• Provides enhanced protection against card fraud
• EMV chips protect keys that are unique for each card – can’t be copied or spoofed
EMV is a trademark owned by EMVCo LLC
• Every chip transaction includes a unique cryptogram
• The issuer can validate that the card and transaction are genuine• Stolen EMV card data can’t be used to create fake cards
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Who uses EMV?
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EMV Benefits: Authentication and Self-sufficiency
Authentication Self-sufficiencyWhat it means
The issuer can determine if the card and transaction are genuine for card-presenttransactions
The card can function offline, without a network connection (approve or decline transactions, validate the PIN)
Why it is needed
Prevent fraud/theft Unreliable and/or expensive telecom networks
How it works 1. Secret keys (IMK, MDK) are securely loaded and stored in the chip card during personalization 2. These keys generate a unique cryptogram for every transaction3. The issuer can validate the cryptogram to determine if the card and transaction are genuine
1. Additional keys (IPK), authorization rules, and (optionally) the PIN are securely loaded and stored in the chip card during personalization2. The POS terminal can validate the keys to confirm that the card is genuine 3. The card can validate if the PIN entered is correct4. The card analyzes the transaction and approves or declines based on the authorization rules
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EMV Impact on Payments Infrastructure
Terminal Acquirer Network Processor Card
• Purchase and install new terminals
• Install new software• Load public keys and
AIDs• Test and certify
• Support EMV data in financial messages
• Maintain debit routing choice
• Test and certify
• Support EMV data in financial messages
• Develop testing and certification
• Develop payment applications
• Support EMV data in financial messages
• Generate EMV keys• Validate EMV
cryptograms• Test and certify
• Mill and embed chips in cards
• Modify card design• Enhance data
preparation• Modify card
personalization• Test and certify
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EMV Considerations for the EBT Community
• Development of common Application Identifier (AID)/application for EBT– Participation by all ecosystem parties required
• Increased card costs to switch to EMV• Upgrade of POS terminals to support EMV transactions
– New equipment with chip readers– Loading of AID for EBT– Certification by FNS
• Does EMV address the fraud experienced by EBT card programs
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Instant Issue
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Options to Meet Your Needs
Instant Issue Equipment
Centrally issued and personalized cards
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Temporary cards2
1Instant Issue Helps Increase Cardholder Satisfaction & Card Use
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What’s Driving the Interest?
Enhance the cardholder experience
Instant replacement of compromised cards
Instant issuance of EMV chip cards
Competitive pressures
Potential for increased revenue
• Instant access to benefits/funds
• No activation challenges
• Response to natural disasters
• Unreliable, unknown, or changing mailing address
• Instant replacement for lost or compromised cards
• Fraud reduction
EMV™ is a trademark owned by EMVCo LLC.
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Instant Issue: Non-Personalized Cards
• No investment in equipment and software• Instant access to benefits – clients don’t have to wait to
receive in the mail• Order in bulk with or without a PIN• Same functionality as a personalized, mailed card • Can issue as temporary and mail a permanent card later,
if desired
NON-PERSONALIZED CARD ISSUED
Economical solution to instantly issue cards
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How it Works
Vendor encodes and personalizes cards with a generic identifier i.e. “Valued Cardholder,” and ships in bulk to state offices
Cards stored in secure vault in inactive state
Agency personnel pull a card from the vault, activate using the processing platform, and hand card to client recipient
(Optional) Permanent card with cardholder’s name is shipped directly to customer
Temporary card no longer valid once permanent card activated
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Instant Issue Advantage: Equipment
Personalized cards issued in agency office
• In-office desktop equipment used to apply cardholder information at issuance• Capable of supporting both magnetic stripe and EMV chip card issuance• Option of issuing embossed (raised print)
or unembossed (flat print) cards
• Installation, training, maintenance
• Consumables
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How it Works
Core application running on agency processor’s main server
Workstation access to create the card
Equipment to produce the card and enable PIN selection
Uses custom keys for programming
Connectivity to the core processing system and/or EFT card management system
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Module Equipment: Printers
Maxima 861 Evolis Primacy Zebra XP Series 3 Fargo DTCii Fargo HDPii Plus
Embosser Direct-to-Card Direct-to-Card Direct-to-Card Retransfer
Embossed Print Flat Print Flat Print Flat Print Flat Print
Cannot print images Good for printing gallery or custom images and can start with white stock
Print on both sides of cardPrints edge to edge
Good for printing gallery or custom images and can start with white stock
Print on both sides of card
Prints edge to edge
Good for printing gallery or custom images and can start with white stock
Print on both sides of card
Prints edge to edge
Best for printing gallery or custom images and can start with white stock
Print on both sides of card
Prints over the edge
Ribbon: Black, Silver, Full Color Ribbon: Black, White, Full Color Ribbon: Black, Silver, Full Color Ribbon: Black, Full Color
EMV Encoder included EMV Encoder included EMV Encoder included EMV Encoder included EMV Encoder included
29.3”H x 19.1”D x 11.4”W 9.72”H x 8.07”D x 15”W 9.3” H x 14.5” D X 7.9” W 10.05”H x 10.27” D x 22.94” W 11.5”H x 28.6”D x 9.25”W Dual Hopper (as shown in image)
11.5”H x 24.6”D x 9.25”W Single Hopper
Single hopper Single hopper Single hopper with an exception feed Dual-hopper with exception feed Single or Dual hopper with exception feed
119 lbs. 8.9 lbs. 11.6 lbs. 11 lbs. 28 lbs.
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Card Options
White Plastic
• Card design is printed at time of personalization
• Uses consumables for each card
• Can include a photo on the card
• Same card can be used for multiple agencies’ programs
Combination
• Custom litho• Photo ID is printed at
time of personalization
Custom Litho
• Minimum card order sizes• Multiple card designs /
programs• Leverage same card
stock for instant and central issue cards
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Both Instant Issuance options offer recipients immediate access to benefits/funds, but each have unique considerations when implementing
Instant Issuance Considerations
Type of Issuance Benefits Drawbacks Comments
Bulk, Non-personalized • No set-up/investment costs• Ability to bulk order encoded cards• Simplified process to issue cards
• Cards are non-personalized or equipment is needed to add name in issuing office
• Multiple programs cannot share card stock
• Order timelines need to allow time for encoding at card vendor
• Cannot support photo cards easily
Preprinted cards sent to agency offices, with account number printed & encoded. Agencies can choose to send out a personalized card to replace instant issued-card.
On-site Instant Issuance • Variety of card/equipment options• Ability to personalize cards onsite• Ability to support multiple
agencies• Ability to print photo cards
• Investment in hardware & ongoing consumables for issuing offices
• Equipment training for personnel• Ongoing maintenance of equipment
Card type options: white/printed onsite, custom preprinted, combination of the 2
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Key considerations when contemplating photo cards for your SNAP or WIC card:
• Rationale for including photos on cards
• Training for all constituencies
• Logistics/costs associated with producing photo cards (in-agency or at card vendor)
• FNS guidelines for photo cards
• State policy/ regulations
Photo Cards
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What’s the future hold?
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Background:
• Mandated by the 2014 Farm Bill to test feasibility and implications of acceptance of SNAP benefits through online transactions.
• Online transactions required to be secure, easy to use, private, and provide similar support as found in retail stores
• Pilot to include at least 5 online retailers in at least 3 states
• September 2016: FNS issues RFV for a 2 year pilot
Online Shopping PilotToday:
• 10 retailers selected to participate in phase 1
• 7 states anticipated to participate based on the retailers selected
• Secure PIN entry through Acculynk’sPaySecureTM service
• Development work underway by the processors and retailers
• Planned 2018 launch
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Mobile Wallets/ Virtual Cards
• Securely store card in phone
• Similar considerations to EMV & Online Shopping
• Reduces clients’ lost card risks
What’s Next?
Biometrics
• Use of retina scan or fingerprint
• Implications for authorized users
• Infrastructure impacts across ecosystem
Mobile Account Access
• Increase in smart phone usage in EBT demographic
• Provide self-service how clients can access
• How to optimize to provide maximum benefit to clients
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Wrap Up
Questions & Answers
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Contact Information
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Jennifer Baur• [email protected]
• (302) 518-3374
Jamie Topolski• [email protected]
• (651) 846-3616