Contactless

For Issuer & Acquirer

April 8, 2018
Contactless Agenda

1 Contactless Payment
What is contactless payment?
3 Contactless Implementation
Implementation task for Contactless

2 Contactless Roadmap
Releases and Roadmap for contactless
4 Q & A for Contactless

©2018 Mastercard. Proprietary and Confidential.

APRIL 8, 2018
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Contactless Payment

What is contactless Payment ?

Benefits of Contactless

Contactless Security

Contactless Technology

©2018 Mastercard. Proprietary and Confidential.

Overview Contactless work

APRIL 8, 2018 3
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Contactless Payment
What is contactless Payment ?

Embedded
Contactless Indicator Chip

Embedded
Antenna

©2018 Mastercard. Proprietary and Confidential.

APRIL 8, 2018 4
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Contactless Payment

•
Benefits of Contactless

Supports new payment acceptance locations, i.e., transit

• Provides a faster, simpler way to pay for purchases
• Offers greater convenience eliminating need to restrict spend to cash on hand
• New payment experience for customers

• Provides a key differentiator and infrastructure for mobile payment capabilities

• Displaces cash and expands payments footprint
• Promotes more frequent account usage and higher GDV
• Improves customer “stickiness”

©2018 Mastercard. Proprietary and Confidential.

• Enables POS for mobile/NFC payments
• Supports Dual Interface chip to enable more secure transactions
• Simpler way to pay results in faster checkout
• Promotes higher average spend

APRIL 8, 2018 5
 Contactless Payment

1 Fraud & Data Reuse Prevention

Contactless Security

• Online Authentication
o Authorization Request Cryptogram (ARQC)
o Dynamic Card Validation Code (dCVC3)
• Offline Authentication
o Combined Data Authentication (CDA)
• POS Entry Mode indicator
o Prevents replay in an alternate mode
• Use of Offline counters
o Prevents endless taps without cardholder verification
01
02

©2018 Mastercard. Proprietary and Confidential.

Privacy Protection
•Cardholder name must not be included in the transaction data
•Transaction log can be blocked from reading via contactless interface
•Read range is limited (0-4 cm)
•Cardholder does not have to handover their card to the merchant

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Contactless Payment
Contactless Mode

Contactless Magstripe Mode (Optional)

• Supports Magstripe-mode Contactless transaction
• Card is authenticated online by validating dynamic CVC3

©2018 Mastercard. Proprietary and Confidential.

Contactless Chip Mode
• Supports M/Chip-mode Contactless transaction
• Card is authenticated online by validating ARQC or offline by CDA
• Support Magstripe-mode Contactless transaction

APRIL 8, 2018 7
 1 Contactless Payment

Technology Payment Selection

Overview Contactless work

Read chip If both card and terminal are chip-enabled

No Fallback for contactless

Yes Fallback No
Chip Error ? Not accepted
allowed

No Yes

©2018 Mastercard. Proprietary and Confidential.

Chip transaction Fallback to Magstripe
DE = 05 Transaction
DE = 07 (Contactless) Must Go Online
DE22=’80’

APRIL 8, 2018 8
 1 Contactless Payment

Application Selection
Overview Contactless work

1. Which AIDs are supported by the card?

2. Card supports:
• Mastercard
• Maestro

3. Do you select :
• Mastercard?
• Maestro?

I select Mastercard

©2018 Mastercard. Proprietary and Confidential.

Note: In contactless, terminal automatically select the application with highest priority

APRIL 8, 2018 9
2 Contactless Roadmap

Mandate for Contactless

Release for Contactless

©2018 Mastercard. Proprietary and Confidential.

APRIL 8, 2018 10
2 Contactless Roadmap
Release & Mandate

12 Oct 2018 all newly-deployed

POS terminals must support
both EMV and contactless
technology
Jul 2016 OBS3 Mandate
1 October 2020, all newly-deployed
Integrated POS (IPOS) terminals in
the Latin America and the
Caribbean region must support
both EMV and contactless
technology

2016 2017 2018 2019 2020

2023

12 April 2019, all newly-issued

Oct 2017 CDA Mandate on cards must support both EMV 1 April 2023, all
Contactless Interface deployed POS

©2018 Mastercard. Proprietary and Confidential.

and contactless technology.
terminals
18 October 2019, all newly- (exclude AP
deployed MPOS terminals must region)
support both EMV and contactless
technology

11
3 Contactless Implementation
Implementation task for Contactless

1. Contactless Implementation For Issuers

2. Contactless Implementation For Acquirer

©2018 Mastercard. Proprietary and Confidential.

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 3 Contactless Implementation
Implementation tasks for Issuers
Task Title
• Mastercard Defines Business Requirements
Forms
• Masterpass Charter Form
Est. Duration

PRE-ISSUANCE
• Mastercard Creates Project
PLANNING
• Mastercard Defines Project Scope
• Mastercard Provides Implementation Deliverables
• Chip Project Workbook 10 days
• Implementation Plan
• Auto Parameter Worksheet (APW)

CARD-ORIENTED • Customers change card design • Sample Submission Form

CHANGES • M/Chip Advance Profile Generator
30 days
• Customers select card product
• Customer develop personalization system
• Customers registered for Card Personalization Validation

HOST CHANGES • Customer need to update authorization format

(DMS & SMS) 60 days
• Customer need to update clearing & batch format
• Customer update host mandatory for contactless

©2018 Mastercard. Proprietary and Confidential.

• Customer does off-line testing • Offline Test script
TESTING 10 days
• Mastercard Review Log • Test Acknowledge Notification (TAN)

• Master card monitor go-live project

30 days
GO-LIVE

APRIL 8, 2018 13
 3 Contactless Implementation
Implementation tasks for Acquirers
Task Title
• Mastercard Defines Business Requirements
Forms
• Masterpass Charter Form
Est. Duration

PRE-ACCEPTANT
• Mastercard Creates Project • Chip Project Workbook 10 days
PLANNING
• Mastercard Defines Project Scope • Implementation Plan
• Mastercard Provides Implementation Deliverables • Auto Parameter Worksheet (APW)

TERMINAL & • Customer need to update authorization format • MasterCard LOA for Contactless Product
ACQUIRER HOST (DMS & SMS) • EMVCo LOA for Terminal Contactless Product
60 days
CHANGES • Customer need to update clearing & batch format • MasterCard Terminal Quality Management
• Customer update host mandatory for contactless • PCI-PTS, if PED is supported
• Customer update Terminal Management System

• Customer selects an approved terminal

MTIP Customer completion of Offline Network Interface Validation
• 10 days
• Customer perform MTIP testing
• Customer receives MTIP Result

©2018 Mastercard. Proprietary and Confidential.

• Customer does off-line testing • Offline Test script
TESTING 10 days
• Mastercard Review Log • Test Acknowledge Notification (TAN)

• Master card monitor go-live project

30 days
GO-LIVE

APRIL 8, 2018 14
 3 Contactless Implementation

Contactless Issuer
Implementation timeline

W1
MONTH 1
W2 W3 W4 W1
MONTH 2
W2 W3 W4 W1
MONTH 3
W2 W3 W4 W1
MONTH 4
W2 W3 W4

Pre-Issuance Planning

Card Personalization Validation

Host Changes

Testing

Go Live
Contactless Acquirer
Pre-Issuance Acceptance

©2018 Mastercard. Proprietary and Confidential.

Terminal & ACQ host Changes

Testing

MTIP

Go Live
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Q & A for Contactless

16

©2018 Mastercard. Proprietary and Confidential.