Today at the Cartes & Identification 2008 Exposition in Paris, MasterCard launched MasterCard Advanced Authentication for Chip - a new EMV authentication solution, for the hundreds of millions of EMV cards in the market that are currently not personalized for the MasterCard Chip Authentication Program.
This new authentication method is an innovative approach that allows two-factor authentication on the numerous EMV cards already issued in EMV markets, in addition to functions already available for cards which are personalized according to the MasterCard Chip Authentication ProgramTM (CAP). Issuers who decide to make strong authentication accessible to their cardholders no longer need to reissue their cards.
Additionally, the new Advanced Authentication for Chip solution supports issuers in markets where PIN is not used to verify cardholders by making sure that the card is genuinely issued and authenticated through the MasterCard network.
This new product is endorsed by a number of major vendors and ensures that:
- Standard EMV cards already issued, with or without off-line PIN, are supported regardless of the presence of explicit CAP personalization.
- The large base of EMV cards in issuance without offline PIN can now be strongly authenticated in remote environments.
- Advanced Authentication for chip readers also support cards personalized with CAP ensuring backwards compatibility with implementations already active in the marketplace.
Advanced Authentication for Chip is operated by the cardholder inserting an EMV card into a personal card reader. Once inserted, the personal card reader will perform specific card checks. If the card does not support offline PIN, the reader will immediately display a one-time password. Otherwise cardholders will first be prompted to enter their PIN. Similar to CAP, this one-time password can then be submitted over the internet, phone, and other channels to the issuing bank for verification. The reader can also be used to respond to presented challenges and create unique signatures incorporating transaction data.
The specification underlying Advanced Authentication for Chip governs how the personal card readers will deal with different EMV card profiles and eensures the widest possible acceptance.
In this way, banks that have EMV cards with PIN in the field can now introduce the security of two-factor authentication using chip cards without having to make any changes to their legacy cards. For EMV cards without PIN the solution offers full authentication of the card. This means that EMV cardholders in many more markets can benefit from more secure transactions in e-commerce, e-banking, telephone banking, telephone orders and other interaction points with their banks.
On the successful launch of this innovative product, Toni Merschen, Group Head Chip at MasterCard, said, "In order to be at the heart of commerce we need to ensure that every MasterCard cardholder can confidently transact in every environment. MasterCard Advanced Authentication for Chip gives cardholders that confidence by ensuring that all of their transactions, whether via the web, telephone or even in their bank branch are conducted in a secure way."
"It is also key that our new products are backed by the industry," continued Merschen, "which is why it is important that we launch the product with solutions from a number of vendors on day one, with more others finalizing their solutions in the coming days and months."