Slide 1: Pinless Transaction Clarifications
Pinless Transaction Clarifications April, 2017 © 2017 First Data Corporation. All Rights Reserved.
Slide 2: Agenda
Agenda • Definition Level Set • Application Selection Overview and Scenario Explanation • EMV No CVM • PIN Bypass • Debit Expansion Programs – PINless POS Product – Signature Debit Product • PAVD – PIN Authenticated Visa Debit • Specification Information 2 © 2017 First Data Corporation. All Rights R
Slide 3: Definitions
Definitions – Dual Message – Two messages used to complete a transaction. Message one is the authorization request. If approved, a second message is created and sent via offline batch process to ultimately charge the consumer. – Single Message – One message for authorization and settlement. – Tradit
Slide 4: Application Selection Overview
Application Selection Overview • All EMV debit cards issued in the United States contain two or more Application Identifiers (AIDs): – A “Global AID” that only allows the transaction to be processed over the Global Network that appears on the front of the card (e.g.Visa or Mastercard,); and – A “Com
Slide 5: Application Selection Overview
Application Selection Overview • It is critical to understand that selection of the Global AID takes away the ability of the merchant or the acquirer to route the transaction. It simply limits the merchant’s available network options. The Common AID, on the other hand, does not limit the merchant’s
Slide 6: Examples of Not Utilizing Application Selection
Examples of Not Utilizing Application Selection • Configuration #1: AID Selection Screens – Cardholder presented with display of available AIDs • Configuration #2: AID Selection Based on Issuer Priority – Solution auto selects the first priority AID listed on chip • Configuration #3: Credit/Debit Se
Slide 7: Configuration #1: AID Selection Screens
Configuration #1: AID Selection Screens • Under the first configuration, the cardholder is presented with an AID selection screen, which requires the cardholder to select the AID before the transaction may proceed. • The terminal displays a screen with the two AID labels—for example, “Visa Debit” an
Slide 8: Configuration #2: AID Selection Based on Issuer Priority
Configuration #2: AID Selection Based on Issuer Priority • The second configuration identified is where the terminal is programmed to automatically select the AID based upon the priority assigned to each AID by the card issuer. • Per Visa’s rules, every issuer in the US is mandated to prioritize Vis
Slide 9: Configuration #3: Debit/Credit Selection Screens Used to Select the AID
Configuration #3: Debit/Credit Selection Screens Used to Select the AID • The final incorrect configuration we have seen is where the terminal presents the cardholder with the traditional “Debit/Credit” selection buttons. But instead of using these buttons to select the form of authentication, as ha
Slide 10: Contactless Readers
Contactless Readers • It also is important to understand that many terminals are configured to handle contact-based cards differently than contactless cards. In particular, we understand many terminals have been programmed to automatically route all contactless transactions based upon AID priority,
Slide 11: EMV No CVM Transactions
EMV No CVM Transactions • No CVM is a CVM method that the terminal and the card can support. Although it does not employ verification of the cardholder like signature or PIN it is still a CVM. – Unlike failed CVM which means that no CVM method was used or agreed upon between the card and the termina
Slide 12: PIN Bypass
PIN Bypass • PIN bypass is recommended to be supported in order to allow cardholders the option to not enter a PIN value when the merchant allows. • Common AID’s only support online PIN and No CVM as potential CVM methods. PIN bypass functionality may be allowed at the merchants discretion. CAID Tra
Slide 13: Debit Expansion Program
Debit Expansion Program 13 © 2017 First Data Corporation. All Rights Reserved.
Slide 14: PINless POS Product
PINless POS Product 14 © 2017 First Data Corporation. All Rights Reserved.
Slide 15: PINless POS Product
PINless POS Product • By accepting PINless POS Debit transactions merchants can enable their customers to pay for their transactions with their debit card without using a PIN. – The transaction is $50.00 or less. – The entry mode can be magswipe, contact or contactless EMV. • For EMV transactions on
Slide 16: PINless POS Product
PINless POS Product • Retailer Value – Improving Time, Control, and Economics – A cost effective routing replacement for signature and no-signature debit transactions – Speeds up checkout – Improves cardholder convenience by allowing a simple swipe, avoiding confusion and the extra steps of entering
Slide 17: PINless POS Product
PINless POS Product • The POS device must be coded to send in the indicators that tell the front end that it supports the PINless POS Product and is configured to accept the response back that the transaction routed single message debit as well as print the network label ID on the receipt. • For any
Slide 18: PINless POS Product
PINless POS Product • The following MCC’s cannot be flipped to single message in support of the PINless POS Product 18 © 2017 First Data Corporation. All Rights Reserved.
Slide 19: Scenarios Where a No CVM Transaction Doesn't Qualify as PINless POS
Scenarios Where a No CVM Transaction Doesn’t Qualify as PINless POS • Single message formatted transaction. • Merchant does not participate in PINless POS • POS device does not support PINless POS • Transaction amount is over $50 • EMV transaction includes one of the Global Credit or Global Debit AI
Slide 20: PINless POS Magswipe No PIN Transaction Flow
PINless POS Magswipe No PIN Transaction Flow 20 © 2017 First Data Corporation. All Rights Reserved.
Slide 21: PINless POS No PIN EMV Common AID Transaction
PINless POS No PIN EMV Common AID Transaction 21 © 2017 First Data Corporation. All Rights Reserved.
Slide 22: Signature Debit Product
Signature Debit Product 22 © 2017 First Data Corporation. All Rights Reserved.
Slide 23: Signature Debit Product
Signature Debit Product • Description – First Data has introduced a new Signature Debit Product offering that will enable expanded authentication options including signature, no-signature and no cardholder verification method (No CVM). The new Signature Debit Product reinforces First Data’s ongoing
Slide 24: Signature Debit Product Offers New Benefits
Signature Debit Product Offers New Benefits • The infrastructure to support the Signature Debit Product will provide the following benefits: – Helps issuers in meeting their Durbin compliance obligations by enabling additional networks as an alternative routing choice on the card for use on transact
Slide 25: Signature Debit Product - Functionality
Signature Debit Product - Functionality • EMV chip processing for our Signature Debit Product depends on the implementation of the common AID’s; only common AIDs can be routed as Signature Debit as the global AIDs do not support alternate routing. • Participating merchants must obtain a signature an
Slide 26: Visa PIN-Authenticated Visa Debit Single Message System Processing Requirement – US Region
Visa PIN-Authenticated Visa Debit Single Message System Processing Requirement – US Region 26 © 2017 First Data Corporation. All Rights Reserved.
Slide 27: Visa PIN-Authenticated Visa Debit Single Message System Processing Requirement – US Region
Visa PIN-Authenticated Visa Debit Single Message System Processing Requirement – US Region • Visa Rule ID# 0027085: PIN-Authenticated Visa Debit Transaction Single Message System Processing Requirement – US Region - “A US Acquirer must ensure that a PIN- Authenticated Visa Debit Transaction is proce
Slide 28: Visa PAVD
Visa PAVD • All POS devices must be coded to not prompt for an Online PIN if: – The merchant is not entitled for traditional debit processing – The final amount of the transaction is not known, regardless if the merchant is entitled for traditional debit processing or not. – These transactions do no
Slide 29: Transaction Flow for PAVD
Transaction Flow for PAVD Transaction Flow for Transaction Flow for VISA VISA Debit Debit Transactions Transactions Transaction Flow for VISA Debit Transactions Transactions sent Is the Final Send PIN & FD Dual Message ? US Common YES YES Is Merchant YES will route to a to First Data for YES YES Amo
Slide 30: PAVD At Risk Transaction Scenarios
PAVD At Risk Transaction Scenarios Transaction scenarios that could lead to a PAVD violation. 30 © 2017 First Data Corporation. All Rights Reserved.
Slide 31: Specification Information
Specification Information For Informational Purposes Only – please refer to the latest specification document to make sure you have the latest information. 31 © 2017 First Data Corporation. All Rights Reserved.
Slide 32: First Data ISO 8583 Global Spec (North & Nashville)
First Data ISO 8583 Global Spec (North & Nashville) Specifications First Data ISO 8583 Global Spec (North & Nashville) PINless POS (Alternate Field Descriptor TAG OC Position = 1 Routing Indicator) Subfield Name = Alternate Routing Indicator Value Sets 0 -Terminal does not support Alternate Routing
Slide 33: Buypass ISO 8583 Spec
Buypass ISO 8583 Spec Specifications Buypass ISO 8583 Spec PINless POS (Alternate Routing Field Descriptor PINless POS Debit Acceptance Card Accepted as Processing Code Indicator) Value Sets Mandatory in a PINless POS Debit 0200 Transaction Mandatory in a PINless POS Debit Request and Time-out Rever
Slide 34: Buypass ATL105 Spec
Buypass ATL105 Spec Specifications Buypass ATL105 Spec PINless POS (Alternate Field Descriptor PINless Debit Acceptance Routing Indicator) Value Sets This field is mandatory for requests in which the POS device will accept PINless debit. Valid Values: 0 = Device does not accept PINless Debit 1 = Dev
Slide 35: Rapid Connect (North/Nashville)
Rapid Connect (North/Nashville) Specifications Rapid Connect (North/Nashville) PINless POS (Alternate Field Descriptor XML Tag Name: Routing Indicator) PLPOSDebitFlg Value Sets Request Values: 1 – PINLess POS Debit is supported Response Values: C – Processed as Credit D – Processed as Debit Signatur
Slide 36: Rapid Connect (Buypass)
Rapid Connect (Buypass) Specifications Rapid Connect (Buypass) PINless POS (Alternate Routing Field Descriptor XML Tag Name: Indicator) PLPOSDebitFlg Value Sets Request Values: 1 – PINLess POS Debit is supported Response Values: C – Processed as Credit D – Processed as Debit Signature Debit Field De