9. What Is a Chip Card?
s A plastic credit card with an embedded computer chip
containing a microcomputer
s Yesterday a Calculator in your Card
s Today a IBM PC
VISA CANADA CONFIDENTIAL
10. Background – Visa 1988 – EMV 1993
The international schemes decided
Smart Cards are the way forward
Europay, MasterCard Visa International developed a joint
EMV Integrated Circuit Card Specifications for
Payment Systems
Fraud Control Cost Reduction
Credit Risk Value Added
Management Services
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11. Why Now
sIncreases Security & Privacy
– Virtually impossible to copy
– Support the evolution of security
techniques
sCombats Fraud
– Rising cost of fraud
– The increasing risk of fraud migration
– The high cost of Fraud Management
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12. To Assure the Future
Transit Telephone
Access Electronic
CORE:
Control Payment Services: Banking
Credit and Debit
Debit/Credit
Electronic Loyalty
Commerce
Stored
Authentication Value
VISA CANADA CONFIDENTIAL
13. Chip Cards – powerful and versatile
s Increases Security & Privacy
s Combats Fraud
s Increased Utility
s Greater Efficiency
Preserving Confidence in the Payments System
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14. Broad International Acceptance
Countries that have EMV by March 2003
s Austria s Egypt s Australia
s Belgium s Israel s Brazil
s Denmark s Jordan s Canada
s Kazakhstan
s France s Japan
s Kuwait
s Great Britain s Mexico
s Latvia
s Greece s New Zealand
s Lebanon
s Italy s Palestinian Territories
s Peru
s Luxembourg s Poland s South Korea
s Netherlands s Romania s Taiwan
s Sweden s Russian Federation s United States
s Switzerland s Turkey s Venezuela
s United Arab Emirates
VISA CANADA CONFIDENTIAL
15. Broad International Acceptance
s Over 100 million Visa chip cards (EMV)
s Millions more Visa chip cards are issued every month
s Est. 3.4MM chip devices deployed out of 20MM
worldwide (2.9MM during year 2002)
s VisaNet can process full chip data
s The VIOR has been modified to Support Chip
Projection: 42% of Visa volume will be chip-based by 2006
Projection: 42% of Visa volume will be chip-based by 2006
VISA CANADA CONFIDENTIAL
16. Visa Chip Cards evolved from Issuer-centric to
Issuer-enabled, consumer-centric…
quot; Easy and quot; Preserve existing
convenient for the infrastructure
consumer to use
quot; Enable Issuers to
quot; Easy to focus on core business
incorporate into
quot; Allow parties to
existing programs
maintain control of
quot; Easy for all parties their current programs
to implement and environments
VISA CANADA CONFIDENTIAL
17. The Goal - Serve the Unit of One the Cardholder
sLifestyle
sValues
sConvenience
sSimplicity
sControl
VISA CANADA CONFIDENTIAL
