Why Is A Smart Card Standard Needed - Ingenico Elite 510 Supplementary Manual

The EMV specifications were written with
the following goals in mind:
• The card and acceptance devices must
communicate together and indicate what
applications the card and acceptance devices
have in common
• The acceptance device can run common
applications and ensure that standards for risk
control and security are applied for debit/credit
applications
• The microprocessor-based payment card
provides worldwide acceptance and
interoperability
Ingenico's Ingesys is a front end EMV server that allows
ISOs, processors and financial institutions to comply with
international EMV standards. For more information about
Ingesys please visit Ingenico's web site at www.ingenico.com.
W
HY IS A SMART CARD STANDARD
NEEDED?
Fraud Reduction
Fraud is not as prevalent in the U.S. as
internationally, but is expanding rapidly in
e-commerce. Increased cardholder security could
increase use of the Internet for online shopping.
Recent consumer surveys have found that the
e-commerce market could easily see double-digit
growth if cardholder security fears were alleviated.
Additionally, Internet merchants accepting smart
card enabled transactions could receive incentives,
such as a discounted rate.
14. INGENICO
Manage a Growing Number of Transactions
Global debit and credit transaction volumes have
increased dramatically over the last few years and
will continue to do so for the foreseeable future.
POS terminals that read magnetic stripe cards
require an ON LINE connection to obtain the bank's
authorization. If smart cards are used for
debit/credit applications, the main part of the
transaction can be performed OFF LINE, saving
time and money. Additionally, the ability to perform
transactions offline expands the retailer's ability to
reach a consumer anytime, anywhere without need
for network and telephone availability.
Ensure Interoperability of Different Debit/Credit
Applications
A prerequisite for the establishment of a global
payment card scheme is that a card is able to work
anywhere and that the associated transactions be
processed regardless of geographic boundaries.
This prerequisite is generally referred to as
interoperability.
Multiple Services on a Single Card
Financial institutions that are issuing smart card
and magnetic stripe based cards are doing so to
provide payment and value-added services such
as loyalty. Magnetic stripe cards alone cannot
provide multiple services.