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The Smart Payment Card

Bill Reding

11 April 2002

Bill_Reding@Datacard.com

2002 Datacard Platform Seven Ltd, All Rights Reserved

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Topics

Digital money, fraud and its impacts

How financial market is moving to smart

cards and the issues faced

How to transition to smart card

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Digital Money, Fraud and its

Impacts

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Money

Bank

valueCash

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Market trends, fraud tendencies

Card payments

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The effect of magstripe fraud

Guns-N-drugs R US

Enter your credit card details:

Transport

Debit / credit

Loyalty

e-purse

...

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The effect of magstripe fraud

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XYZ BANK

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How the financial markets are

transitioning to smart cards,

and the issues they face

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Transition to chip for

debit/credit Issuers

Card schemes

2005

National schemes

UK: chip and PIN

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Impacts on Issuers

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XYZ BANK

More data

Authorisation

system changes

Issuance system

changes

Infrastructure

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Considerations for some Issuers

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XYZ BANKPIN encryption

Dynamic authentication

Multi-application

Issuer scripts

PIN

Post issuance

Managing complexity Smart Card Management System

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How the proceed with the

transition

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Considerations on moving to chip

(1) Look at the customer impact

(2) Relax, now that chip has overcome fraud

(3) Reconsider (2)

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The risks

Q. Where will the fraud go?

A. The weakest point

human frailty

issuance

magstripe (fallback)

...

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Countermeasures

Security

Chips - hardware, software

Chip and card management

Cradle to grave

Key management

Systems

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Secure Devices

Transport, e-Purse, ...

Look at the customer impact

1234 1234 1234 1234JOHN DOE

XYZ BANK

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Moving to Multi-Application

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XYZ BANK

Technology issues

DifferentiationMarkets andcustomer offerings

e-purse

retail loyalty

e/m-commerce

transport

government

Customer devicesSmart Card

ManagementSystem

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Using an SCMS

Managing complexity

Customer data

Products

Applications

Card management systems

(MULTOS, GlobalPlatform, Prisma, ...)

Versions

Multi-issuer / provider

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Questions?