VISA has initiated a migration from magstripe cards & signatures to chip cards & PINs. From now until 2010, chip-enabled VISA payment cards will gradually replace more than 24 million Canadian-issued magnetic stripe VISA cards.
Merchants play a crucial role in ensuring that the necessary payment infrastructure is in place to provide consumers (Canadian and international) with opportunities to use chip cards in Canada. Approximately 600,000 Canadian merchant locations will require hardware replacement to EMV-compliant chip reading terminals with PIN pads.
A chip is essentially a computer on a payment card that stores software and data in a way that is very difficult to copy, compared to the data on a magstripe. When used with an EMV-compliant terminal, the chip can make pre-arranged decisions including approving or declining transactions. One key function of the chip is the ability to verify a user's PIN. This is known as offline PIN check.
Interac has announced that they endorse the migration to chip technology for the IDP (Point of Sale) and SCD (ABM) networks. A target has been set for 2007 for the first Interac chip transaction. Other key dates include: "New models of ABMs and POS terminals entering the marketplace to be certified chip-capable beginning in 2008," and "A substantial conversion of cards, ABMs and POS devices will have taken place by the end of 2010".
IBM and WN have a lot of experience with EMV migrations. The two companies have been instrumental in EMV projects in Europe for several years.
In order to meet EMV Compliance the following upgrades may be necessary:
- Hardware
- All ABM card readers
- PCs
- Encrypting PID PAD
- Software
- Operating system
- ABM software kernel (ProChip/EMV)
- Wincor applications such as ProDevice, ProCash NDC/DDC, ATLINK etc
- Image update & testing assistance
- Switch provider must certify
- Credit card communication “ABM ↔ switch ↔ Issuer” by card issuer
- Debit card communication “ABM ↔ switch↔ issuer” by Interac
VISA Canada and Interac compliancy date: 2010
- Ensure hardware is ready
- Approved chip-capable reader
- Approved encrypting PIN pad
- Processor to support Windows XP
- Ensure software is ready
- Approved Kernel
- Extensions to message protocol
- Test
- End-to-end tests with acquirer and issuer
IBM has the experience to help.
For further information on IBM’s products and services designed to assist with your migration to EMV, please contact us.