EMV Overview

This article guides you through understanding and processing Europay, Mastercard, and Visa (EMV) chip payments and transactions using Authorize.net. EMV chip technology is the global standard for secure Card Present (CP) credit and debit card transactions. The embedded smart chip generates a unique, one-time transaction code each time it is used at a chip-activated terminal, making it virtually impossible to duplicate in counterfeit cards and significantly reducing in-store fraud.

EMV chip technology may also be referred to as:

• Chip and PIN
• Chip and Signature
• Chip and Choice

Scope and Applicability

EMV chip technology applies only to Card Present (CP) contact chip-enabled card transactions at the physical point of sale. It does not apply to:

• E-commerce transactions
• Mail Order/Telephone Order (MOTO) transactions
• Contactless or Near Field Communication (NFC) transactions

Prerequisites

Before processing EMV transactions, ensure you have the following in place:

• An Authorize.net Merchant Account connected to a supported processor
• Authorize.net's Mobile Point of Sale (mPOS) or Windows application, or a custom-built application using the Authorize.net EMV Software Development Kit (SDK)
• A compatible EMV chip card reader purchased through POS Portal

Processor Support for EMV Chip Transactions

The table below outlines Authorize.net support for EMV chip or swiped transactions by processor using the In-Person SDK, mPOS, or Windows applications.

Identifying Your Connected Processor

Follow the steps below to find the processor connected to your Authorize.net account:

1. Sign in to the Merchant Interface.
2. Be on or switched to New Experience(2.0)
3. Click Account in the left navigation.
4. Click My Business
5. Click Processor Details tab
6. Locate the Processor name in that view

Identifying EMV Transactions in the Merchant Interface

With the addition of EMV support, a new field — Entry Method — has been added to Transaction Details and Merchant/Customer Email Receipts. This field indicates how each credit card transaction was submitted.

Understanding EMV Receipt Data

EMV email receipts include the following fields:

• Merchant Store Identifier (MID)
• Terminal Device Identifier (TID)
• Application Name (example: Visa)
• Application Primary Account Number (PAN) (example: xxxx1234)
• Card Entry Mode (example: Chip Read)
• Transaction Total (example: USD$)
• Authorization Mode (example: Issuer)
• EMV Tag Data (recommended for all approvals):
  • Application Identifier (AID) - Tag 4F
  • Terminal Verification Result (TVR) - Tag 95
  • Issuer Application Data (IAD) - Tag 9F10
  • Transaction Status Information (TSI) - Tag 9B
  • Authorization Response Code (ARC) - Tag 8A
• Cardholder Verification (example: Signature)

EMV Transaction Response Codes

The table below lists the response codes returned during EMV transactions.

Frequently Asked Questions

• Do you bear liability for fraudulent transactions if you do not use an EMV chip-capable device?
  Yes. If a fraudster uses a counterfeit of a card that is EMV chip-enabled, you will be liable for the loss if the transaction was not processed through an EMV chip-enabled device. However, if a fraudulent EMV chip card is processed through an EMV chip-enabled device, the issuers will continue to be liable for that loss.
• Do the liability shift changes apply to e-commerce, mail order/telephone order (MOTO), contactless, or mobile Near Field Communication (NFC) transactions?
  No. The EMV chip liability shift only applies to card-present (contact) EMV chip-enabled card transactions at the physical point of sale.
• Are you required to update your point of sale to accept EMV chip transactions?
  It is not a requirement at this time to update your hardware to support EMV chip transactions. However, if you do not want to be liable for counterfeit transactions processed in person, you will need to support EMV chip technology. For more information on liability coverages, contact your Merchant Service Provider (MSP).
  
  Note: Not all customers have EMV chip-enabled cards. You still need to be able to process traditional magnetic stripe cards as well. The liability for fraud on magnetic stripe-only cards has not changed.
• What is Quick Chip for EMV?
  Quick Chip is available for all processors that support EMV. Quick Chip for EMV accelerates the existing EMV chip checkout process, allowing customers to check out in about two seconds or less using a chip-enabled card.
• What is the In-Person Software Development Kit (SDK) and why should you use it?
  To accept EMV chip transactions, your payment solution and every EMV chip device you use must be certified with each of the card brands (Visa, Mastercard, etc.).
  
  To help you accept EMV chip cards quickly and easily, Authorize.net created the In-Person SDK, which is the software that communicates the customer's chip information from the EMV chip reader to Authorize.net, then back to the EMV chip reader. The In-Person SDK has already been certified with the card brands for use with an Authorize.net-supported, EMV chip-compatible card reader, allowing you to accept EMV chip transactions on a supported processor.
  
  The In-Person SDK is available for iOS, Android, and Windows, but is only available on supported processors.
• Does the EMV SDK support tips?
  Within the SDK, the merchant or developer has the following tip configuration options available:
  • Inperson iOS SDK
  • Inperson Android SDK
  • Declare the total and tip amount in one step
  • Perform an Authorize Only transaction, then a Prior Auth Capture with a different total that includes the total and tip
  • Three customizable pre-defined percentages
  • No tip
  • Custom tip
• Is Over The Air (OTA) update supported?
  The EMV SDK supports the ability for the merchant to update their EMV reader with the latest firmware and Authorize.net configurations. This is supported with all versions of the SDK.
  
  Merchants have the following options available to them:
  • Check to see if an update is available
  • Update the firmware
  • Update the configuration
  • Check device information
  If an update is needed, it can take 5–15 minutes to download and install.
• Will you need to make any software or development changes?
  If you are using Authorize.net's mobile point of sale (mPOS) or Windows application, ensure you are using the most recent version.
  
  If you are connecting to Authorize.net through a non-mPOS or Windows payment solution, you will need to update your solution to add support for Authorize.net's In-Person SDK and purchase an EMV chip-compatible card reader from POS Portal.
• Does Authorize.net support Near Field Communication (NFC) payments?
  At this time, Authorize.net does not support NFC (contactless) transactions.

Glossary

• AID – Application Identifier
• ARC – Authorization Response Code
• EMV – Europay, Mastercard, and Visa
• IAD – Issuer Application Data
• MID – Merchant Store Identifier
• MOTO – Mail Order/Telephone Order
• mPOS – Mobile Point of Sale
• MSP – Merchant Service Provider
• NFC – Near Field Communication
• OTA – Over The Air
• PAN – Primary Account Number
• SDK – Software Development Kit
• TID – Terminal Device Identifier
• TSI – Transaction Status Information
• TVR – Terminal Verification Result