Mag-Stripe Vs EMV Chip Card

Magnetic Stripe Card	EMV Chip Card
1. Data in Magnetic Stripe Card are not in Encrypted format.	1. Cards cannot be cloned as it uses Encrypted technology. Two totally independent encrypted value fields, Triple DES encryption.
2. If scratched or bent it can easily damaged. (Additional replacement cost)	2. High durable than Magnetic Stripe Card.Two totally independent encrypted value fields, Triple DES encryption.
3. Easily affected by Magnetic field. Even by magnet of motor, speaker, or other magnetic cards in same wallet.	3. Triple DES encryption. Not affected by magnetic fields.
4. No such option available.	4. Oncard security traps & Card is password protected.
5. Each reader installation requires at least one dedicated leased data line to off premises server or dial-up connection to validate. (extra cost)	5. Data is stored on card, no need to connect to transaction processor for “transaction approval”.
6. Each card needs to be validated on the host. Requires at least a minimum of 1 modem per location, (10 to 30 seconds + the cost of the call).	6. Data is stored on card, no need to connect to transaction processor for “transaction approval”. (< 5 seconds)
7. Each time card is used, extra cost per transaction.	7. Data is stored on card, no need to connect to processor for “transaction approval”.
8. Upgrading cost for old ATM and POS machine is higher in which has only Magnetic Stripe reader.	8. Dual function smart card and magnetic-stripe readers are cheaper.
9. Lower physical card cost.	9. Higher physical card cost.

EMV Terminal
• The issuing bank defines the processing rules via parameters on the chip
• The chip on the card processes transactions information and determines how to apply the rules for processing
• The terminal helps enforce the rules on  the chip
• If terminal is unable to provide the services requested by the chip, the issuer may set rules that will result in the chip declining the transaction.

EMV  Transaction Flow
1. Card is inserted into EMV Terminal
2. First Half of EMV Transaction Protocol
a. Application Selection
b. Read Application Data
c. Offline Data Authentication
d. Processing Restrictions
e. Cardholder Verification
f. Terminal Risk Management
g. Terminal Action Analysis
h. Card Action Analysis
3. Online Authorization Request from Card to Terminal
4. Authorization Request from Terminal to Vantiv
5. Authorization Request from Vantiv to Issuer
6. Authorization Response from Issuer to Vantiv
7. Authorization Response from Vantiv to Terminal
8. Completion and script processing. If Issuer approved but card denied transaction a reversal is produced
9. Card is removed from EMV Terminal

EMV Introduces New Security Functions:
Card Authentication Security, Cardholder Verification options, Authorization options , Contact/Contactless & Mobile Technology

EMV Card Authentication:
A) Online Card Authentication:
• Card: Generates  an EMV  Dynamic Cryptogram
• Issuer Host: Host Validates the EMV Dynamic Cryptogram

B) Offline Card Authentication (optional)
• Card provides the terminal a dynamic security certificate
• Terminal validates the dynamic security certificate
• Online  Authorization

Cardholder Verification (CVM) :
• More than one CVM is supported  on a card
• Issuers choose what CVMs to support
• Issuer chooses the priority order of the CVMs

EMV CVM List
• Signature
• Online PIN
• Offline PIN
• No CVM
 
Online vs. Offline PIN
EMV Online PIN
• Works the same as mag stripe host based PIN
• All EMV cards use online PIN for ATM
• No system changes required
• The U.S. is an online market

EMV Offline PIN
•  Most Offline PIN transactions go online for authorization
•  Changes required:
a.  PIN selection/activation process
b.  Customer PIN Communications
c.  Offline PIN change process
d.  Synchronization with the online PIN
e.  Add ability to send PIN and PIN counter updates to the card

EMV Authorization/Approval
(1) Online Authorization
Works much like a magnetic stripe card transaction
• New EMV data is sent to the host
• Dynamic authentication technology is used
• New risk assessment rules are followed

(2) Offline Authorization (Optional)
The card authorizes the transaction
• No communication with a host system for authorization
• Card contains offline authorization criteria and counters

EMV requires certification and validation
A) Terminal
• EMVCo terminal type approval – hardware and logic testing
• Payment network brand testing for each brand supported
B) Acquirer
• Processor Network Host Certification
• Host certification already completed by EMV Service Provider
C) Chip
• EMV Chip application certification (Before they can be sold)
• Card Personalization validation (For each product issued)


Magnetic Stripe Terminal :
• Card is simply a static storage device that is read by the terminal
• The terminal performs card swipe, PIN encryption  and signature capture (integrated environments) functions

Terminal Mag Stripe Transaction Flow
1. Card is swiped through Terminal
2. Authorization Request from Terminal to Acquirer
3. Authorization Request from Acquirer to Issuer
4. Authorization Response from Issuer to Acquirer
5. Authorization Response from Acquirer to Terminal

Some Information Regarding ATM/POS and Online Transaction

Some Information Regarding ATM/POS and Online Transaction

(एटीएम , पोस र अनलाइन कारोबार सन्दर्भमा केही सूचना) :

आजको आधुनिक प्रबिधिको युगमा हामी मध्य धेरै जनाले डेबिट वा क्रेडिट कार्डको प्रोयोग बिभिन्न प्रायोजनका निम्ती गरिरहेका हुन्छौ ।

यसरी प्रयोग गर्दा कहिले कसो केहि प्रयोग कर्ताले  समस्या भोगेको पनि हुनु होला,

एटिएम मसिनमा प्रयोग गर्दा आउन सक्ने संभावित समस्या :

• पैसा निस्केन खातबाट रकम घटेन भने कुनै समस्या हुँदैन तर
• पैसा निस्केन खाताबाट रकम घट्यो,
• वा भने जती पैसा निस्केन थोरै मात्र निस्कियो,
• वा पैसा निस्कियो तर फेरी एटिएम मसिन मै अड्कियो अनि मसिन भित्रै छिर्यो

यस्तो अवस्थामा के गर्ने त?

समस्या आएमा सर्वप्रथम आफ्नो मौजात रुजु गर्ने , यदी नघट्नु पर्नेमा पनि घटेको रहेछ भने निम्न जानकारी सहित आफुले डेबिट/क्रेडिट कार्ड लिएको बैंक मा तोकिएको समय भित्र सम्पर्क गर्ने

कार्ड नम्बर , कारोबार मिती र समय, झिक्न खोजेको रकम , प्रयोग गरेको एटिएम मसिन र त्यसको ठेगना , यदी रिसिप्ट प्राप्त भए सो समेत 

पोस मसिन वा अनलाईनबाट प्रयोग गर्दा आउन सक्ने संभावित समस्या :

• खाता बाट रकम घट्यो तर भनेको समान तोकेको समय प्राप्त नहुनु
• वा कहिले प्राप्त नहुनु ,
• वा एउटा समान भनेको अर्कै समान प्राप्त हुनु
• वा भनेको भन्दा कम क्वालिटिको समान वा बिग्रेको वा कम परिमाण मा प्राप्त हुनु 

यस्तो अवस्थामा के गर्ने त ?

समस्या आएमा सर्वप्रथम आफ्नो मौजात रुजु गर्ने , यदी नघट्नु पर्नेमा पनि घटेको रहेछ भने निम्न जानकारी सहित आफुले डेबिट/क्रेडिट कार्ड लिएको बैंक मा तोकिएको समय भित्र सम्पर्क गर्ने

कार्ड नम्बर , कारोबार मिती र समय, तिरेको रकम ,खरिद गर्न खोजेको बस्तु वा सेवा,परेको समस्या,अनलाईन बिक्रेताको नाम (ठेगाना) , यदी अनलाईन रिसिप्ट प्राप्त भए सो समेत,  

ध्यान दिनु पर्ने कुराहरु :

• समस्या लाई तोकिएको समय भित्र सम्पर्क गर्नु पर्छ नत्र कानुनी रुपमा मान्यता प्राप्त नगर्न सक्छ,
• समस्या को बारेमा आवश्यक जानकारी बैंकलाई अनिवार्य उपलब्ध गराउनु पर्छ नत्र त्यो कारोबारको बारेमा समाधान का निम्ती चाहिने जानकारी प्राप्त गर्न अप्ठ्यारो पर्न सक्छ र प्रकृया लम्बिन सक्छ,
• बिश्वासिलो बिक्रेताबाट मात्र कारोबार गर्ने बानी बसाल्दा धेरै उचित हुनेछ,
• आफ्नो बैंक खाता, कार्ड र पिन कोड को जानकारी अरुलाई वा असम्बन्धित व्यक्ती वा संस्थालाई दिनु हुँदैन
• आफ्नो कार्ड हराएमा बैंक लाई तुरुन्त जानकारी गराएमा बन्द गर्न भन्नु पर्छ ।
• पिन कोड कसैले थाहा पाएको लागेमा तुरुन्तै परिवर्तन गरिहाल्नु पर्छ, र बेला बेलामा आफुलाई कंठा हुने गरी पिन कोड परिवर्तन गर्नु बेश हुन्छ
• आफुले प्रयोग गर्ने सुबिधाको बारेमा सक्दो प्रकृया र जानकारी प्राप्त गरी सोही अनुरुप कार्य गर्नु पर्छ 
• आधुनिक पेमेन्ट प्रबिधिलाई सोक वा देखावटी होईन आवश्यकता पुर्ती गर्ने साधन बनाउनुहोस्
• अनावश्यक सेवा वा सुबिधा नलिनुहोस् वा प्रयोग नगर्नु होस्
• कुनै समस्या आएमा सम्बन्धित ठाउँबाट आवश्यक परामर्श लिएर कार्य गर्नाले सो समस्या चाडै समाधान हुन सक्छ
• आफ्नो लागी कुन सेवा सुबिधा उपयुक्त हुन्छ त्यही लिनुहोस् अरुले के गरेको छ त्यसको पछी नलाग्नु होस्

UltraCash - A New Payment Techonlogy

UltraCash Information in Nepali Language:

UltraCash भारतमा विकसित नयाँ प्रविधी हो, यसमा दुई मोबाइलबीच डाटा स्थानान्तरण लागि धेरै उच्च आवृत्ति(frequency) र अश्राव्य(inaudible) ध्वनि छालहरू(Wave)को प्रयोग हुने गर्दछ।

यो प्रविधिमा फोनको स्पिकर र माइक्रोफोन प्रयोग हुने हुँदा यसका लागी मात्र कुनै विशेष किसिमको हार्डवेयरको आवश्यकता पर्दैन जसका कारण सबै फोनमा सहजै काम गर्न सक्छ।

अर्को शब्दमा यो प्रविधिले  NFC (Near Field Communication)को माध्यमबाट भुक्तानी प्रकृया सम्भव बनाउँछ।

Security:

Ultracash का सेट अप,सफ्टवेयर र सुरक्षा PCI-DSS अनुरूप प्रमाणित छन् । भुक्तानी कार्ड उद्योग (Payment Card Industry) - डाटा सुरक्षा मानक (Data Security Standard)ले Ultracash एप भित्र भएका सबै डाटाहरुलाई उच्च प्राविधिक सुरक्षा प्रदान गरिएको हुन्छ जुन मापदण्ड अनुरूप छ भन्ने सुनिश्चित गर्दछ।

Ultracash ले डाटाको गोपनीयता र सुरक्षाको लागि ठुला ठुला बैंक र सुरक्षा अडिट एजेन्सीहरू मान्यता प्रदान गरेको छ ।

भुक्तानी प्रविधी आरबीआईको निर्देशन अनुरुप छ र यसमा प्रायोगकर्ताले  Two Factor Authentication को माध्यमबाट अधिकतम सुरक्षा प्राप्त गर्दछन् ।

Process:

पसलामा गएर तपाईंले UltraCash प्रयोग गरेर भुक्तानी गर्न चाहनुहुन्छ भन्ने कुरा पसलेलाई बताउनुहोस् ।

पसलेले तिर्नु पर्ने रकम आफ्नो मोबाईलको एप मा राख्छ र फोन अन नै राख्नेछ ।

सुरक्षित पिन प्रयोग गरेर तपाईँले एपमा लगिन गर्नुहोस् र त्यसपछि निर्देशित कुराको पलना गर्नुहोस :

भुक्तानी सुरु क्लिक गर्नुहोस् - यसले ओटिपी प्राप्त गर्ने भनेर सोध्छ, ओटिपी प्राप्त गर्ने भनेर क्लिक गर्नुहोस ।

आवेदकलाई ओटिपी प्राप्त भएपछि, Pay Now विकल्प देखाउँछ,

आफ्नो फोन व्यापारीको फोन नजिकै लानुहोस् र Pay Now बिकल्प क्लिक गर्नुहोस्।

तपाईंले आफ्नो फोनमा चलानी(Bill) देख्नु हुनेछ, फेरि Pay मा क्लिक गर्नुहोस् गरेर पेमेन्ट प्रकृया पुरा गर्नुहोस् । (नोट: ओटिपी प्राप्त गर्न १० - ३० सेकेन्ड लाग्छ)

तपाईंले मोबाइल रिचार्ज, DTH वा बिल भुक्तानी (Recharge Section in App)) आफ्नो बैंक खाता बिबरण भरेपछी गर्न सक्नुहुन्छ ।

Online and POS transaction Vs Physical Cash Transactions

Importance of Online and POS transaction rather than Physical Cash Transactions:
कागजी नोट कसरी प्रयोग गर्नका साथै कसरी कम प्रयोग गर्ने बारे पनि सोच्ने कि ?
विश्वको धेरै राष्ट्रले कागजी नोटको प्रयोगलाई कम गर्न अनलाईन पेमेन्ट सुबिधामा जोड दिएका छन् र तेसै अनुरूप पुर्वाधारको पनि बिकास गर्दै गएको र यस कार्यका निम्ती यस्तो सुविधा दिने स्वदेशी कम्पनिलाई प्रोत्साहान र अन्य सुविधा दिएका छन्
तेस देशका नागरिकलाई कागजी नोट प्रयोग गर्नु भन्दा अनलाईन तथा पस(point of sale) मेसिन बाट भुक्तान गर्नु सरल र सुरक्षित मान्छन् जस मध्य केहि निम्न प्रकारका छन् :
१) कागजी नोट छिटै च्यातिने र झुत्रो हुने डर हुँदैन,
२) कागजी नोट धेरै व्यक्तिको सम्पर्कमा हुने हुँदा धेरै सरुवा रोगहरु एक अर्कामा सर्नबाट रोकिन्छ,
३) धेरै रकम बोकेर हिड्दा हुने शाररिक र मानसिक जोखिमबाट मुक्त हुन सकिन्छ,
४) समान किन्दा छुट्टा रकम फिर्ता गर्दा हुने अफ्ठयारोबाट छुटकारा,
५) छुट्टाको निहुमा बर्षमा हामीले भुक्तनी गरेको बढी रकमको बचत,
६) घरमै बसेर बिभिन्न बिक्रेताको सामान मुल्य र स्तरबारे जानकारी,
७) सडकमा हुने सवारी जाम, तेलको प्रयोग र दुर्घटनामा कमि,
८) चोबिसौ घण्टा अनलाईन पेमेन्ट को सुबिधा प्रयोग गर्न सकिने,
९) घण्टौ लाम लागेर भुक्तानी गर्नु पर्ने कार्यबाट मुक्ति,
१०) बजार क्षेत्रको विकास भएर विश्वभर बिस्तार हुनु जसले गर्दा राष्ट्रिय समानले अन्त राष्ट्रिय बजार पाउने सम्भावना बढ्छ
यस्ता अरु धेरै फाईदा छन् जस बारेमा सर्वसाधरणलाई जानकारी गराउन जरुरी छ ।  

e-payment user response

People need to Use SCT Debit Card

Reason behind Joining SCT:

·          All member banks are treated equal manner.

·          Opportunity to access ATM & POS throughout Nepal. ATM in India and Bhutan through specified financial institution’s ATMs.

·          Users are provided thermally printed card with ISO standard track information which has high durability and reliability.

·          There is not any hidden cost charges for product and services provided by SCT.

·          Secure transaction in ATM as well as POS machine.

·          Skilled manpower handling each specific task.

·          Securely delivery of requested cards and respective pin mailer to member banks in committed date.

·          Sufficient backup for Hardware and Software resources.

·          Security, Quality and Prompt Services.

·          24x7 hrs services are available which monitored through connectivity of ATM, POS and other device connected on SCT switch.

·          Free training available whenever it is necessary.

·          Immediate response for any query or problems from member banks or SCT users.

Changes in human life style through SCT debit card which can be listed as below:

·          Previously the customer don't have any concern about card services but now most of the customer looks whether there is debit card services are available or not before opening the account in particular banks.

·          ATM/POS/Ecommerce is in the reach of general public of Nepal.

·          People can able to withdraw amount from anywhere and any bank ATM which are in SCT Network.

·          Flow of e-cash increases due to its smooth and secure transaction.

·          Various problems such as health hazard, fake notes issues and paper note life are being solved due to online payment services.

·          Consciousness on using debit cards securely has increased.

Benefit for User:

·          No need to write checks for cash and stand in branch lines.

·          Free from risk of carrying Hard cash.

·          Solve the problem for paying small amount during shopping at departmental stores.

·          Several of diseases that are spread through paper notes or coins can be controlled.

·          Life of Hard cash can be increased.

·          People can easily compare the price of different product while doing online shopping.

·          People will get familiar to use new payment technology available in market.

·          Card holders can do several of banking tasks like cash withdraw, balance query at convenient locations.

·          ATM’s of SCT Network is opened for 24 hours in certain location so that withdraw is possible even in emergency period.

·          Customer can issue nine supplementary cards for single account customers.

Benefits for F.I.

·          F.I. may participant in the SCT Network as an issuer and or Acquirer.

·          It adds the positive marks for F.I. debit cards.

·          Supports cash withdrawals, balance query & pin change.

·          18X7 service available for F.I. and its customers.

·          Connect their customers with their cash deposited in bank account wherever they are.

·          Limited number of teller required to serve customer at office.

·          Increases the number of F.I. customers.

Benefit for Nation

·          Increase the life of physical Money.

·          Easy to tack necessary record.

·          Secure & Healthy Environment

·           

Description of Products/Services:

Debit Card: A debit card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. At first F.I. order certain number of fresh card as per requirements via SCT. Those fresh cards should be sent as per customer request to SCT.  SCT will personalize those fresh cards and make it SCT debit card. Those finished SCT debit card will again sent to F.I.

Pin mailer: With personalize cards there is pin code provided to customers. Incase customer forget his/her previous pin mailer Repin will generated.

Card Management Software: For the convenient of member, SCT has offered a Card Management Software which is used by member banks to view card transaction and update the card status. Also it has various features that are useful and related to card transactions.

ATM/POS Networking: ATM is computerized machine that permits bank customers to gain access to their accounts with a magnetically encoded plastic card and a code number. ATM connected in SCT network enables the customers to perform several banking operations without the help of a teller, such as to withdraw cash, obtain bank statements, and cash transfers (on testing phase). A point of sale/service (POS) machine is used to conduct retail transactions. SCT user can pay their shopping amount through POS transaction.

POS Cash Advanced: This is pos sale cash advance where customers obtain money from his/her debit card at pos terminal. In this SCT user have to pay certain charges. It is suitable mainly in remote location where ATM machine not available or not able to install.

SCT MOCO:
FOCUSONE Payment Solutions in collaboration with SmartChoice Technologies (SCT) has launched a new mobile payment system “SCT MoCo”. The technology enables registered users to use their mobile phones to make utility payments and financial transactions. The mobile application is linked to a SCT Debit card. The system makes use of existing telecoms, banks and merchant's ecosystems so that use of the service is as easy as having one more plastic card or a wallet in one’s pocket.
SCT MoCo users can make payments of any sort such as purchase payments, utility payments and online payments through their mobile phones. All payments can be made ON-SITE or OFF-SITE that will be revolutionary to any time of payments made in Nepal so far.

Benefits of MoCo are:
·          MoCo extends SCT plastic cards to mobile, enabling financial transactions via mobile phones.
·          A hassle free sign up process. If you have a smart phone (Android/iPhone), data connectivity and SCT card, you can start using MoCo in just a few minutes.
·          Regulatory approved 2 factor authentications: MoCo password + SCT card PIN.
·          Uses secure communication channel via data. Doesn't use insecure SMS, IVR, or USSD.
·          SCT card information is never revealed to third-party (merchants).
·          Capability of linking more than one SCT card to a specific account.

SCT nPay :
SCT nPay is a new and innovative service launched by nPay in collaboration with SCT, Nepal’s no. 1 and widely used ATM and Merchant Network, for its card holders to do online payment transactions.
SCT nPay allows merchants/sellers to accept online payment for their services through SCT cards. After signing a Merchant Agreement with nPay, merchant will need to integrate their website with nPay's gateway. After merchant customers’ checkout from the website, they enter Card Number and PIN on nPay secure payment page. When the payment is completed, npay will send  an email notification to the registered email address.
SCT nPay accepts only SCT cards. It supports only Nepalese Rupees (NRs). SCT nPay gateway is hosted in one of the highly secured data center with 256 bit SSL Encryption certificate. nPay supports physical/electronic goods and services which are not prohibited/restricted by government rules and regulations.

 Benefits of nPay:
 SCT nPay has following benefits: it is simple, fast and secured way of payment
·         Simple: SCT nPay interface is developed for non expert users, any one with little computer knowledge can use our service, Also we provide secure tracking of transactions.
·         Fast: Fund transfer has been always a great problem and tedious job for any customers who want to shop online. We are here to solve your problems. You just need SCT card number and your card pin number.
·         Secured: nPay uses multiple layers of security, including fraud-monitoring systems and encrypted tokens using SHA256 hash algorithms to help keep payment information safe.


Why to Use SCT debit Cards:
·          Easy to get from any member Banks
·          Lower Cost
·          Secure (both card and pin required in any kind of transactions)
·          Can be use for Online Payment Solutions. No money need to store in Application vault.

Drawback of storing amount in Application Vault:
·          User will lose Interest of that vault Amount.
·          User can’t retain that amount as hard cash during required time.
·          No legal liability or rules to secure that amount.


नगद राशिलाई ई-भल्ट मा राख्नुका बेफाईदाहरु :
•   प्रयोगकर्ताले  बैंक बाट प्राप्त हुने ब्याजको रकम गुमाउनु पर्ने हुन सक्छ ।
•   प्रयोगकर्ताले आवश्यक समयमा नगद भौतिक रुपमा पुन प्राप्त गर्न असमर्थ वा पुन प्राप्त गर्नका लागी केहि मुल्य चुकाउनु पर्ने साथै धेरै प्रकृया तथा समय खर्चिनु पर्ने हुन सक्छ ।
•   ई-भल्टमा राखेको रकमलाई कानुनी संरक्षण तथा नियमले नबाधेको हुन सक्छ, कुनै कारणले सो रकम हराएमा पुन प्राप्त गर्ने कानुनी आधार नहुन सक्छ ।


त्यसैले यस्तो सेवा लिदा बिचार पुराएर मात्र लिनु पर्छ जसले आफ्नो बैंक मा भएको रकमलाई करोबार गर्ने बेलामा मात्र बैंक को खाताबाट घटाओस् ।