EMV transaction authorization means that the EMV card issuer is authorizing EMV transactions. EMV stands for Europay, MasterCard and Visa; EMV is a global standard for debit, credit or prepaid payment cards using chip based technology instead of magnetic stripes to authenticate credit and debit cards. EMV was invented by engineers at Bellcore (today Telcordia Technologies) and was originally called EMV. EMVCo is the EMV standard organization. EMV transaction authorization is generally used together with EMV debit, EMV credit or prepaid payment cards, but EMV transaction authorization can be used for other purposes as well.
EMV transaction authorization can be used in EMV contact and EMV contactless cards. EMV credit, EMV debit and EMV prepaid cards support both EMV contact and EMV contactless interfaces.
EMV transaction authorization is a process that includes the following steps:
- The EMV card issuer validates the smart chip on the EMV card.
- The EMV issuer establishes a secure connection to the EMV card using three different types of EMV transaction authorization:
– EMV offline PIN authorisation is used for EMV contact, EMV contactless and EMV online transactions;
– EMV chip and signature authorisation is used for EMV contact, EMV contactless and EMV online transactions;
– EMV chip and PIN authorisation is used for EMV contact transactions.
- The EMV issuer sends the EMV application an EMV transaction authorization request including the ECAM (EMV card application managed) data of the EMV card. The EMV application on the EMV card returns an EMV transaction authorization response.
- The EMV issuer receives the EMV transaction authorization response and sends it to the merchant or other service provider, depending on the EMV transaction type.
- The EMV merchant verifies if EMV transaction authorization is successful or not. If it is not successful the EMV merchant sends a message to the EMV card issuer indicating that EMV transaction authorization has failed. If EMV transaction authorization is successful, then EMV debit, EMV credit or prepaid transactions can take place.
EMV transaction authorization can be used with EMV contact and EMV contactless cards. EMV credit, EMV debit and EMV prepaid cards support both EMV contact and EMV contactless modes of operation.
EMV transaction authorization is needed for EMV contact and EMV contactless transactions. EMV contact transactions can be either EMV offline PIN or EMV chip and signature (online) transactions; EMV contactless transactions can be EMV chip and signature (online) transactions. EMV offline PIN EMV contact, EMV online EMV contactless and EMV online EMV contact transactions require EMV transaction authorization. Only EMV offline PIN EMV contact transactions do not need any form of EMV transaction authorization.
EMV transaction authorization uses different algorithms depending on EMV transaction type. EMV transaction authorization is EMV offline PIN for offline EMV contact transactions; EMV online EMV contactless and EMV online EMV contact transactions require EMV chip and signature (online) based on the OCB (Offline-Cardless Authentication) structure.
EMV transaction authorization is usually used with EMV credit, EMV debit or EMV prepaid payment cards. EMV transaction authorization can be used for other purposes as well.
EMV transaction authorization is usually done using EMV contact and EMV contactless transactions. EMV contact offline PIN and EMV contact online EMV contactless transactions require an EMV transaction authorization; EMV EMV contact EMV online EMV contact transactions can be processed without EMV transaction authorization. Only EMV contact offline PIN EMV transactions do not need any form of EMV transaction authorization.
