EMVCo, LLC
`A Guide to EMV Chip Technology
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`A Guide to EMV Chip Technology
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`Version 2.0
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`November 2014
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`Copyright © 2014 EMVCo, LLC. All rights reserved.
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 001
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`

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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`Version 2.0
`November 2014
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`Table of Contents
`TABLE OF CONTENTS .................................................................................................................. 2
`
`LIST OF FIGURES .......................................................................................................................... 3
`
`1
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`2
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`3
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`1.1
`1.2
`
`2.1
`2.2
`
`INTRODUCTION ................................................................................................................ 4
`
`Purpose .......................................................................................................................... 4
`References ..................................................................................................................... 4
`
`BACKGROUND ................................................................................................................. 5
`
`What are the EMV Chip Specifications? ........................................................................ 5
`Why EMV Chip Technology? ......................................................................................... 6
`
`THE HISTORY OF THE EMV CHIP SPECIFICATIONS ................................................... 8
`
`Timeline .......................................................................................................................... 8
`3.1
`3.1.1 The Need for a Global Chip Card Standard ................................................................... 8
`3.1.2 The Evolution of the EMV Chip Specifications ............................................................... 9
`3.1.3 Common Core Definitions .............................................................................................. 9
`3.1.4 Extending EMV Chip Technology to Contactless and Mobile ...................................... 10
`3.2
`EMV Chip around the World ........................................................................................ 11
`
`4
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`EMVCO LLC..................................................................................................................... 13
`
`4.1
`4.2
`4.3
`4.4
`
`EMVCo Mission ............................................................................................................ 13
`Structure of EMVCo Management and Operations ..................................................... 14
`The Role of the Payment Systems in Contrast to EMVCo .......................................... 15
`EMVCo Relationship with Other Standards Bodies ..................................................... 16
`
`5
`
`EMV CHIP TECHNOLOGY – HOW IT WORKS .............................................................. 17
`
`Stepping Through an EMV Chip Transaction .............................................................. 17
`5.1
`5.1.1 Steps for an EMV Contact Transaction ........................................................................ 18
`5.1.2 Steps for an EMV Contactless Chip Transaction ......................................................... 18
`5.2
`EMV Chip Features ...................................................................................................... 19
`5.2.1 Application Cryptogram ................................................................................................ 19
`5.2.2 Risk Management and Authorisation Controls ............................................................. 20
`5.2.3 Cardholder Verification Processing .............................................................................. 21
`5.2.4 Offline Data Authentication .......................................................................................... 22
`
`6
`
`TESTING AND APPROVAL ............................................................................................ 24
`
`EMVCo Objective ......................................................................................................... 24
`6.1
`6.1.1 Terminal Type Approval ............................................................................................... 24
`6.1.2 Card Type Approval ..................................................................................................... 25
`6.1.3 Chip Security Evaluation .............................................................................................. 25
`
`IMPLEMENTATION CONSIDERATIONS ....................................................................... 26
`
`Issuer Considerations .................................................................................................. 26
`Retailer and Acquirer Considerations .......................................................................... 28
`
`THE NEXT GENERATION OF EMV CHIP SPECIFICATIONS ....................................... 30
`
`Business Drivers .......................................................................................................... 30
`EMV Next Generation Specifications ........................................................................... 31
`Milestones .................................................................................................................... 32
`
`GLOSSARY...................................................................................................................... 33
`
`7.1
`7.2
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`8.1
`8.2
`8.3
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`7
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`8
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`9
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`- 2 -
`Copyright © 2014 EMVCo, LLC. All rights reserved.
`
`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 002
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`List of Figures
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`Version 2.0
`November 2014
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`FIGURE 1: EMV CHIP SPECIFICATIONS TIMELINE .................................................... 8
`FIGURE 2: PERCENTAGE OF CARD-PRESENT TRANSACTIONS THAT ARE EMV ........... 12
`FIGURE 3: EMVCO INTERACTION STRUCTURE ..................................................... 14
`FIGURE 4: PROCESSING STEPS FOR AN EMV CONTACT CHIP TRANSACTION ............. 18
`FIGURE 5: APPLICATION CRYPTOGRAMS .................................................................. 19
`FIGURE 6: RISK MANAGEMENT AND SCRIPT COMMANDS .............................................. 20
`FIGURE 7: CARDHOLDER VERIFICATION PROCESSING ................................................. 21
`FIGURE 8: OFFLINE DATA AUTHENTICATION ............................................................ 22
`FIGURE 9: ISSUER EMV IMPLEMENTATION ACTIVITIES ............................................... 26
`TABLE 10: ISSUER IMPLEMENTATION CONSIDERATIONS ......................................... 27
`FIGURE 11: EMV ACCEPTOR IMPLEMENTATION ACTIVITIES ......................................... 28
`TABLE 12: ACQUIRER IMPLEMENTATION CONSIDERATIONS ..................................... 29
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`Copyright © 2014 EMVCo, LLC. All rights reserved.
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 003
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`Version 2.0
`November 2014
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`1 Introduction
`
`
`1.1 Purpose
`The purpose of this paper is to provide an overview of the specifications and
`processes related to EMV chip products and transactions. The document is
`intended to describe the “what” and the “why” of EMV chip technology within the
`context of the wider payments industry.
`
`Additionally, the document describes the role of EMVCo, LLC (EMVCo), and how
`various payment industry stakeholders may interact with EMVCo to participate in
`the ongoing management of the various EMV Specifications.
`
`The document was first published in 2011, and this current version (released in
`2014) has been updated to focus on the EMV Chip Specifications, as well as
`reflect the growing ownership of EMVCo.
`
`Information regarding other specifications published by EMVCo can be found at
`www.emvco.com.
`
`
`1.2 References
`Information for this document has been drawn from several sources, including
`the following:
`
`
` The EMVCo web site: www.emvco.com
`
`
`
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` EMV Integrated Circuit Card Specifications for Payment Systems, version
`4.3, November 2011 (EMVCo, LLC)
`
` EMV Contactless Payment Specification For Payment Systems, version
`2.4, February 2014 (EMVCo, LLC)
`
` Type Approval Process Documentation for terminals and cards available
`from EMVCo, LLC
`
`Issuer and Application Security Guidelines, v2.4, April 2014 (EMVCo,
`LLC)
`
`
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`Copyright © 2014 EMVCo, LLC. All rights reserved.
`
`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 004
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`2 Background
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`Version 2.0
`November 2014
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`2.1 What are the EMV Chip Specifications?
`The EMV Chip Specifications that encompass both Contact and Contactless
`payments are global payment industry specifications that describe the
`requirements for interoperability between chip-based payment applications and
`acceptance terminals1 to enable payment. The specifications are managed by
`the organisation EMVCo.
`
`Named after the original organisations that created the specification - Europay,
`MasterCard and Visa - the EMV Chip Specifications were first published in 1996.
`Approaching twenty years later, there are now over two billion active EMV chip
`cards used for credit and debit payment, at over 35 million EMV acceptance
`terminals deployed around the world2.
`
`The distinguishing feature of EMV chip transactions is that the payment
`application is resident in a secure chip that is embedded in a plastic payment
`card (often referred to as a chip card or smart card), a
`personal device such as a mobile phone or other form
`factors such as wristbands or watches. The secure
`chip provides three key elements:
`
`
`It can perform
`
`processing functions.
`
`
`
`
`
`It is able to store confidential information very
`securely.
`
`It can perform cryptographic processing.
`
`
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`
`
`These capabilities provide the
`means for secure consumer payments.
`
`In order to execute a payment, the chip must connect to a
`chip reader in an acceptance terminal. There are two
`possible means by which this physical connection may be
`made which are often referred to as contact or contactless.
`With contact, the chip must come into physical contact with the chip reader for
`the payment transaction to occur. With contactless, the chip must come within
`sufficient proximity of the reader, (a maximum of 4cm), for information to flow
`
`
`1 Acceptance terminals include attended and unattended point of sale (POS), and automatic teller
`machines (ATMs).
`2 These figures were reported by EMVCo as of Q4 2013 and represent the latest statistics from
`American Express, Discover, JCB, MasterCard, UnionPay and Visa as reported by their member
`financial institutions globally.
`
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`Copyright © 2014 EMVCo, LLC. All rights reserved.
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 005
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`Version 2.0
`November 2014
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`between the chip and the acceptance terminal. In both scenarios, the acceptance
`terminal provides power to the chip to enable the chip to process.
`
`Chips that are embedded in form factors such as plastic payment cards may
`support only a contact interface, only a contactless interface, or both contact and
`contactless. Chip cards that support both contact and
`contactless interfaces are referred to as dual interface.
`When the chip is installed inside a non-card form factor,
`such as a mobile phone, contactless is typically the only
`option for connection to the acceptance terminal.
`
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`
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`2.2 Why EMV Chip Technology?
`The EMV Chip Specifications are designed to significantly improve the security
`for face-to-face payment transactions by providing features for reducing the
`fraud that result from counterfeit and lost and stolen cards.
`
`The features that are defined within the EMV Chip Specifications that enable this
`are as follows:
`
`1. Authentication of the chip card to verify that the card is genuine so as to
`protect against counterfeit fraud for both online authorised and offline
`transactions.
`
`
`2. Risk management parameters to define the conditions under which the issuer
`will permit the transaction to be conducted offline and the conditions that force
`transactions online for authorisation, such as if offline limits have been exceeded.
`
`
`3. Digitally signing payment data for transaction integrity.
`
`4. More robust cardholder verification methods to protect against lost and stolen
`card fraud.
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`Copyright © 2014 EMVCo, LLC. All rights reserved.
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 006
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`Version 2.0
`November 2014
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`Counterfeit and lost and stolen fraud represents significant cost to all participants
`in the payment process, including retailers, acquiring banks, card issuers and
`cardholders. Costs are realised through the processing of cardholder disputes,
`research into suspect transactions, replacement of cards that have been
`counterfeited or reported as lost and stolen, and eventual liability for the
`fraudulent payment itself. By reducing counterfeit and lost and stolen card fraud,
`EMV chip technology offers real benefits to retailers, acquirers, card issuers and
`cardholders.
`
`
`
`
`
` Become involved in EMVCo
`
`
`EMVCo can help deliver real benefits – for retailers, acquirers, card issuers and vendors
`to the payments industry.
`
`Why not have a say in the ongoing development of the EMV Specifications?
`
`Become an EMVCo Technical or Business Associate. For more information refer to the
`EMVCo website www.emvco.com.
`
`
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`- 7 -
`Copyright © 2014 EMVCo, LLC. All rights reserved.
`
`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 007
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`3 The History of the EMV Chip Specifications
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`Version 2.0
`November 2014
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`3.1 Timeline
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`Figure 1: EMV Chip Specifications Timeline
`
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`3.1.1 The Need for a Global Chip Card Standard
`Chip cards have been with us for approximately forty years but have evolved
`considerably both in terms of functionality and security in that time. From the first
`inventions and patents of the early 1970s through to the initial commercial
`deployments in the 1980s, chip cards predate the delivery of the EMV Chip
`Specifications by more than a decade.
`
`The first mass deployment of chip cards for payment by the banking industry was
`in France. Driven by a need to reduce high levels of fraud due to counterfeit and
`lost and stolen magnetic stripe cards, the French banks conducted field trials of
`microprocessor chip cards embedded in plastic bank cards in 1984.
`By 1994, all French bank cards carried a chip using a French developed
`specification for chip card credit and debit payment known as B0′. Through
`issuing chip cards with PINs, the French banks were able to dramatically reduce
`fraud due to counterfeit and lost and stolen cards.
`
`
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`Copyright © 2014 EMVCo, LLC. All rights reserved.
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 008
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`Version 2.0
`November 2014
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`Following the French success, a number of European markets issued chip based
`bank cards through the 1990s to counter the growing fraud due to counterfeit and
`lost and stolen cards. However, all of these programs were based on domestic
`market specifications that were not interoperable. This trend of establishing
`proprietary domestic chip specifications in Europe through the early 1990s
`created a situation where chip technology helped protect against fraud for
`domestic transactions but magnetic stripe was the only method of acceptance
`when the cardholder travelled outside their local market.
`
`In the early 1990s, the United Kingdom and Japan were considering the
`migration of their bank cards from magnetic stripe to chip. Both markets were
`reluctant to continue the propagation of non-interoperable domestic chip
`environments and so the driver for a global chip standard was born.
`
`
`3.1.2 The Evolution of the EMV Chip Specifications
`In 1994, three international payment systems, Europay, MasterCard and Visa
`began the development of a global chip specification for payment systems. This
`globalisation continued over the years, with JCB joining in 2004, American
`Express in 2009, and both UnionPay and Discover in 2013.
`
`An initial version of the specification titled EMV ’96 Integrated Circuit Card
`Specification for Payment Systems, was released in 1996. The first production
`version of the EMV Chip Specifications, version 3.1.1 was subsequently
`published in 1998.
`
`The most recent version of the EMV Chip Specifications is version 4.3, published
`in 2011. Over the years since their initial publication the specifications have
`evolved to meet the changing requirements of the payment industry, and
`benefited from over a decade of implementation experience in multiple markets
`across the globe.
`
`Despite the ongoing change, a driving principle that stands behind the evolution
`of the EMV Chip Specifications has been that each new release or version is
`always backwards compatible with prior releases. This helps protect the
`investment in the EMV chip infrastructure made by payment industry
`stakeholders.
`
`3.1.3 Common Core Definitions
`The EMV Chip Specifications allow the issuer the flexibility to define their own
`risk management processing that occurs in the chip card and the issuer host, and
`the information content (known as Issuer Application Data) that flows between
`the chip and issuer host. This has resulted in each payment system defining its
`
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`- 9 -
`Copyright © 2014 EMVCo, LLC. All rights reserved.
`
`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 009
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`Version 2.0
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`own EMV chip payment application specification3 which requires an issuer to
`implement different card personalisation and host authorisation systems per
`payment system.
`
`In 2004, Common Core Definition (CCD) was introduced as part of the version 4.1
`EMV specification. CCD defines a set of card application implementation options,
`card application behaviours, and data element definitions sufficient to accomplish
`an EMV transaction. Should an issuer wish to comply with CCD, it allows an
`issuer to define a common EMV chip based payment application that may be
`applied to all payment systems.
`
`In 2005, EMVCo published a functional specification for an issuer payment
`application, called EMV Integrated Circuit Card Specification for Payment
`Systems Common Payment Application (CPA) that complies with the CCD
`requirements, and defines card applications, implementation options and card
`application behaviours. Issuers could choose to deploy CPA-compliant chip
`cards as an alternative to cards supporting one of the international payment
`systems’ individual applications.
`
`
`3.1.4 Extending EMV Chip Technology to Contactless and Mobile
`The evolution of contactless chip has transpired in quite a different way when
`compared with the EMV Contact Chip Specifications. While the development of
`contact chip occurred collaboratively amongst payment industry organisations
`from the onset, contactless development has occurred in a competitive
`environment, with the individual payment systems developing their own
`specifications.
`
`In 2007 the EMV Contactless Communication Protocol Specification (CCPS) was
`published so that the hardware and firmware specifications (known as
`contactless Level 1) would be common for all payment system contactless
`payment applications.
`
`This was followed in 2008 by the EMV Contactless Specifications for Payment
`Systems – Entry Point Specification, which facilitated multiple payment system
`contactless applications to reside in a single contactless terminal.
`
`In addition to accepting EMV contactless chip cards, contactless terminals that
`are compliant with the EMV Contactless Specifications can be designed to also
`accept contactless chips embedded in other form factors such as mobile phones.
`This is possible with the implementation of Near Field Communications (NFC)
`support in the mobile phone or equivalent device.
`
`
`
`3 International payment system EMV based card specifications include American Express AEIPS,
`Discover DPAS, JCB J/Smart, MasterCard M/Chip, UnionPay IC Card and Visa VIS.
`
`
`- 10 -
`Copyright © 2014 EMVCo, LLC. All rights reserved.
`
`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 010
`
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`Version 2.0
`November 2014
`
`EMVCo, LLC
`A Guide to EMV Chip Technology
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`3.2 EMV Chip around the World
`From the earliest field trials in 1997, to the progression of national migrations
`from magnetic stripe to EMV chip in various markets around the world, the EMV
`Chip Specifications are a global standard for chip payment, and they continue to
`grow in usage.
`
`Today there are over two billion active EMV chip cards in circulation and over 35
`million EMV acceptance terminals deployed around the world4. But, of course the
`real value proposition is the extent to which EMV transactions actually occur.
`Accordingly, in 2014 EMVCo transitioned to reporting EMV chip transaction
`percentages by region. The following diagram provides an overview of the
`percentage of card-present transactions that are EMV by major region.
`
`
` Protect your investment in EMV infrastructure.
`The EMV Chip Specifications continue to develop to meet the changing needs of the
`payment industry.
`
`Make sure you can provide input into the future development of the EMV Chip
`Specifications. Become an EMVCo Technical or Business Associate. For more
`information refer to the EMVCo website www.emvco.com.
`
`
`4 These figures were reported by EMVCo as of Q4 2013 and represent the latest statistics from American
`Express, Discover, JCB, MasterCard, UnionPay and Visa as reported by their member financial institutions
`globally.
`
`
`- 11 -
`Copyright © 2014 EMVCo, LLC. All rights reserved.
`
`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 011
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`Version 2.0
`November 2014
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`Figure 2: Percentage of Card-Present Transactions that are EMV
`
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`- 12 -
`Copyright © 2014 EMVCo, LLC. All rights reserved.
`
`
`
`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 012
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`Version 2.0
`November 2014
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`4 EMVCo LLC
`In February 1999, Europay, MasterCard and Visa
`created the limited liability company, EMVCo, as a
`separate entity to manage, maintain, and enhance
`the EMV Chip Specifications.
`In 2002, Europay was acquired by MasterCard.
`In 2004, JCB joined with MasterCard and Visa as
`co-owners of EMVCo, and in 2009, American Express joined as the fourth
`owning entity. In 2013 both UnionPay and Discover became joint owners, giving
`each payment brand an equal 1/6th ownership of EMVCo, LLC.
`
`
`4.1 EMVCo Mission
`The primary goal of EMVCo was initially to facilitate the interoperability of chip-
`based transactions. This was achieved through two primary activities:
`
`
`1. The management, maintenance and ongoing enhancement of the EMV
`Chip Specifications.
`
`2. Managing testing and approval procedures for all EMV chip capable
`terminals and certain aspects of EMV chip cards to assess compliance
`with the EMV Chip Specifications.
`
`
`In December 2013 the mission statement of EMVCo was revised to reflect its
`changing scope following the decision to develop specifications beyond those
`solely for chip based transactions. The original primary goals detailed above are
`reflected in the following, updated Mission Statement:
`
`“To facilitate worldwide interoperability and acceptance of secure payment
`transactions by managing and evolving the EMV Specifications and related
`testing processes.”
`
`EMVCo Mission Statement December 2013
`
`
`
`
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`- 13 -
`Copyright © 2014 EMVCo, LLC. All rights reserved.
`
`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 013
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`4.2 Structure of EMVCo Management and Operations
`The structure of EMVCo’s management and operations, and interactions with
`third party advisors is illustrated in the following diagram.
`
`
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`Version 2.0
`November 2014
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`
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`Figure 3: EMVCo Interaction Structure
`
`
`American Express, Discover, JCB, MasterCard, UnionPay and Visa have
`appointed individuals to work at both management and Working Group levels
`within the EMVCo organisation. The Board of Managers, under guidance and
`direction of the Executive Committee, governs EMVCo. The Executive
`Committee, in turn, receives input from the EMVCo Advisors on business and
`strategic issues. The organisation has established several Working Groups,
`composed of representatives from its members, to carry out the work of EMVCo.
`The Board assigns work items, functions and responsibilities to the Working
`Groups as appropriate.
`
`EMVCo maintains the EMVCo Associates Programme, in which third parties can
`provide input to EMVCo and participate in certain EMVCo activities as a
`Business Associate or Technical Associate. Business Associates provide
`EMVCo with input on strategic business and implementation matters related to
`the use of the EMV Specifications. Each Business Associate may appoint an
`individual to serve on the Board of Advisors and, accordingly, advise the EMVCo
`Executive Committee.
`
`
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`Copyright © 2014 EMVCo, LLC. All rights reserved.
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 014
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`Version 2.0
`November 2014
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`Payment industry stakeholders may participate as a Technical Associate and
`provide EMVCo with input and receive feedback on detailed technical and
`operational considerations connected to the EMV Specifications and related
`processes. Technical Associates are able to engage with all of the EMVCo
`Working Groups and receive updates or provide input on the Working Group
`activities and specifications. Seats on the EMVCo Board of Advisors are
`reserved for Technical Associates representing distinct market sectors. Technical
`Associate representation on the Board of Advisors is determined through an
`annual election process.
`
`Organisations that currently participate in EMVCo as Business Associates or
`Technical Associates are listed on the EMVCo website.
`
`EMVCo also maintains the EMVCo Subscriber Service, which anyone can join as
`a Subscriber to receive advance notice of pending developments and changes,
`submit queries to EMVCo, and participate in a more regular dialogue with
`EMVCo. Organisations that may benefit from being Subscribers are participants
`in the global payment industry, including vendors, consultants, laboratories,
`payment systems, retailers and regional associations.
`
`EMVCo hosts an annual User meeting for Associates and Subscribers.
`
`Eligibility, fee structures, and application details relating to participation in
`the Associates Programme and Subscriber Service can be found on the
`EMVCo website, www.emvco.com.
`
`
`4.3 The Role of the Payment Systems in Contrast to EMVCo
`EMVCo is the global technical body that facilitates the worldwide interoperability
`and acceptance of secure payment transactions by managing and evolving the
`EMV Chip Specifications and related testing processes. EMVCo does not define
`or issue products, and it has no mandate to enforce EMV compliance within the
`marketplace.
`
`EMVCo operates separately from the international Payment Systems that own
`EMVCo, with its own separate approval and decision making processes. The
`Payment Systems assume the role of defining and issuing products, and
`enforcing EMV compliance for products that carry their respective brands.
`
`Additionally, the individual payment systems publish their own EMV chip
`payment application specifications for their own respective branded chip card
`products; these define the options for card risk management processing and
`other features not defined by EMVCo. Also, the Payment Systems maintain the
`responsibility for the functional testing and type approval for cards that are
`compliant with their own product specifications.
`
`
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 015
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`A Guide to EMV Chip Technology
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`The individual payment systems have to personalise the EMVCo kernel to
`ensure product acceptance matches global and regional rules.
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`Version 2.0
`November 2014
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`4.4 EMVCo Relationship with Other Standards Bodies
`The EMV Chip Specifications cannot be considered in isolation, and to this end,
`EMVCo collaborates with other industry bodies and standards organisations.
`Examples of this collaboration are given below.
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`1. International Organisation for Standardisation (ISO) - The EMV Chip
`Specifications are based on underlying International Organisation for
`Standardisation (ISO) standards as follows:
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`ISO/IEC 7816: Identification Cards – Integrated Circuit(s) Cards
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`
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`ISO/IEC 14443: Identification Cards – Contactless Integrated Circuit(s)
`Cards – Proximity Cards
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`2. Payment Card Industry Security Standards Council (PCI SSC) is
`primarily concerned with the protection of sensitive payment information
`such as account information and personal identification numbers (PINs).
`The EMV Chip Specifications and PCI standards are complementary in
`enhancing payment security and reducing fraud due to counterfeit and lost
`and stolen cards.
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`3. The Near Field Communication (NFC) Forum – EMVCo has been
`working to extend EMV technology to the contactless and mobile
`channels. This has required alignment with the NFC Forum which is
`responsible for developing the specifications for communication between
`NFC devices and services
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`4. GlobalPlatform - Part of EMVCo’s activities is to review the functionality
`and security of platforms on which an EMV chip payment application will
`reside. Alignment with standards bodies such as GlobalPlatform are
`important as EMV chip payment applications are increasingly
`implemented on shared chip platforms that support multiple applications,
`each from a different application owner.
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`Copyright © 2014 EMVCo, LLC. All rights reserved.
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 016
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`EMVCo, LLC
`A Guide to EMV Chip Technology
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`Version 2.0
`November 2014
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`5 EMV Chip Technology – How it Works
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`5.1 Stepping Through an EMV Chip Transaction
`There is a fundamental difference between a magnetic stripe and an EMV chip
`transaction. For a magnetic stripe transaction, the card is simply a data store that
`is read by the terminal and then the card is no longer used. The terminal
`performs all the processing in conjunction with the issuer and / or payment
`system and applies the rules for the transaction.
`
`During an EMV transaction, the chip is capable of processing information and
`determines many of the rules that determine the outcome of the transaction. The
`terminal helps enforce the rules set by the issuer on the chip. These rules can
`include enforcing services such as offline data authentication, verifying the
`cardholder identity via PIN or signature, online authorisation and so on. It is up to
`the issuing bank to define which of these services is required for the current
`transaction, via the rules placed on the chip. If the terminal is unable to provide
`the services requested by the chip, the issuer can set rules that will result in the
`chip declining the transaction.
`
`Accordingly an EMV chip transaction requires interaction between the chip and
`the terminal which is a protocol that is defined by the EMV Chip Specifications.
`The protocol defines a series of steps, which are described in the following
`sections.
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`- 17 -
`Copyright © 2014 EMVCo, LLC. All rights reserved.
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`RFCyber's Exhibit No. 2003, IPR2022-00413
`Page 017
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`

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`EMVCo, LLC
`A Guide to EMV Chip Technology
`
`5.1.1 Steps for an EMV Contact Transaction
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`Version 2.0
`November 2014
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`Figure 4: Processing Steps for an EMV Contact Chip Transaction
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`5.1.2 Steps for an EMV Contactless Chip Transaction
`The major difference between an EMV contactless chip transaction and an EMV
`contact chip transaction is that the transmission of information between the chip
`and t