chip and PIN cards

[shahid123456]

i am going to ask some questions which might be of beginner level but sorry in advance for that


i want to know the differnce between PCI and EMV

and my next question is that

is it necessary to have EMV compliant card and EMV compliant POS terminal for pin based transactions i.e. in europe they have chip and pin based cards which are EMV compliant, so for using PIN is it necessary to have EMV compliant card

[andrewj]

i am going to ask some questions which might be of beginner level but sorry in advance for that

You don't need to apologize for wanting to learn.

i want to know the differnce between PCI and EMV

Well, you could start with some of the posts on this topic found here:

http://pcianswers.com/category/chip-pin/

But specifically, EMV (or 'chip and PIN' as it is known in some parts of the world) is a protocol standard that defines how cards and terminals talk together, and what messages are used in a financial transaction. Although it is true that one of the goals of EMV is to reduce fraud in the regions in which it is introduced, the EMV standard simply defines how to perform a transaction using smartcards.

PCI DSS, however, _is_ a security standard that defines how card data should be handled. This standard does not differentiate where the data comes from, and therefore covers both 'traditional' magnetic stripe card data, as well as data from EMV based cards.

is it necessary to have EMV compliant card and EMV compliant POS terminal for pin based transactions i.e. in europe they have chip and pin based cards which are EMV compliant, so for using PIN is it necessary to have EMV compliant card

Yes. The EMV standard requires the customer to have an EMV compliant card (ie a 'chip' or 'smart' card), and the merchant to have an EMV compliant terminal.

[AredeGot73]

what they did, is get a PIN machine, take out the internal electronics, and replace it with their own.

its NOT a working pin machine, just something they made that looks like a PIN machine....

but yeah, its kinda easy to fool ppl into typing in their PIN number and swiping their cards this way, but what are you gonna do?

[jbhall56]

Chip and PIN was introduced to reduce card present transaction fraud, i.e., face-to-face or in person transactions. This was a big problem in Europe which is where it was first introduced.

The EMV standard has the ability to also secure on-line transactions, but a standard on how to do that was never agreed to by the card issuers, banks and other interested parties. A number of banks and merchants issued their own proprietary solutions for using Chip and PIN cards to secure on-line transactions with their organizations. However, none of these proprietary solutions ever caught on outside of their own organizations.

In the US, the American Express Blue card has a chip on board, but it does not work as a Chip and PIN card overseas. American Express also has issued a USB card reader for the Blue card, but again, it is proprietary to that card.