Table of Contents

implementing electronic card payment systems
Implementing Electronic Card Payment Systems
by Cristian Radu   ISBN:1580533051
Artech House © 2003

This cutting-edge book offers you a better understanding of the security problems associated with magnetic stripe cards, and presents the business case for chip migration.

Table of Contents
Implementing Electronic Card Payment Systems
Chapter 1 - Introduction
Part I - Magnetic Stripe Debit and Credit Cards
Chapter 2 - Payment Card Processing
Part II - Chip Migration with EMV „¢
Chapter 3 - Chip Migration
Chapter 4 - EMV „¢ Compliant Data Organization
Chapter 5 - EMV „¢ Certificates
Chapter 6 - Debit and Credit with EMV „¢
Chapter 7 - EMV „¢ Chip Migration Issues
Part III - Remote Debit and Credit with EMV „¢
Chapter 8 - Remote Card Payments and EMV „¢
Appendix A - Security Framework
Appendix B - Generic Security Threats
Appendix C - Security Services
Appendix D - Security Mechanisms
Appendix E - Block Ciphers
Appendix F - RSA Encryption and Signature Scheme
Appendix G - E-Commerce and M-Commerce Related Technologies
List of Figures
List of Tables
List of Examples

Back Cover

Europay, MasterCard, and Visa developed a standard for chip cards, referred to as the EMV, allowing consumers and businesses greater protection against fraud compared with magnetic stripe cards. Implementing Electronic Card Payment Systems provides a comprehensive overview of the EMV chip solution and explains how this technology provides a chip migration path , where interoperability plays a central role in the business model. This cutting-edge book offers a better understanding of:

  • Security problems associated with magnetic stripe cards
  • The business case for chip migration
  • Multiapplication EMV chip card layout design
  • The implementation of multiapplication selection mechanisms in EMV chip cards and terminals
  • A tutorial presentation of an EMV transaction profile

This first-of-its-kind resource also discusses the organizational and management issues in connection with the EMV chip migration and the use of EMV chip cards in e-commerce and m-commerce transactions. An excellent reference for today s IT/e-commerce professionals and postgraduate students alike, the book helps readers fully understand this emerging, complex payment card technology.

About the Author

Cristian Radu is currently an independent consultant for payment system and telecom operators in Belgium. He has over 15 years of experience as an engineer and researcher. Dr. Radu earned his Ph.D. in electrical engineering at the Catholic University of Leuven, Belgium.

Implementing Electronic Card Payment Systems

Cristian Radu

Artech House

Library of Congress Cataloging-in-Publication Data

Radu, Cristian.
Implementing electronic card payment systems / Cristian Radu.
p. cm. ”(Artech House computer security series)
Includes bibliographical references and index.
ISBN 1-58053-305-1 (alk. paper)
1. Electronic funds transfers. 2. Credit cards. 3. Debit cards. 4. Payment ”Data processing.
5. Electromagnetic compatibility. I. Title. II. Series.
HG1710 .R33 2003
658.8 ² 8 ”dc21 2002033224

British Library Cataloguing in Publication Data

Radu, Cristian
Implementing electronic card payment systems. ”(Artech House computer security series)
1. Electronic commerce ”Security measures 2. Electronic funds transfers 3. Smart cards
I. Title
005.8 ² 2


Cover design by Yekaterina Ratner

Copyright 2003 ARTECH HOUSE, INC.

685 Canton Street
Norwood, MA 02062

SET ¢ is a trademark owned by SET Secure Electronic Transaction LLC. CEPS ¢ is a trademark of CEPSCo, LLC. EMV ¢ is a trademark owned by EMVCo, LLC. The author acknowledges that the use of the word EMV ¢ shall never imply authorization or endorsement by EMVCo, LLC, nor will it imply that the author has obtained EMVCo approval for the content of this book. The author agrees and acknowledges that the use of the EMV ¢ specifications for writing this book does not create any relationship between EMVCo and the author. 3-D Secure ¢ is a trademark owned by Visa International. 3-D SET ¢ is a trademark owned by Visa International. SPA ¢ is a trademark owned by MasterCard International.

All rights reserved. Printed and bound in the United States of America. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher.

All terms mentioned in this book that are known to be trademarks or service marks have been appropriately capitalized. Artech House cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark.

International Standard Book Number: 2002033224
Library of Congress Catalog Card Number: 1-58053-305-1

10 9 8 7 6 5 4 3 2 1

To Valentina, Cristina, and Matei


At the end of this work it is a real pleasure for me to thank all the people who helped me during the writing of this book.

During my time with Integri I felt the warm friendship of all my colleagues, whose constructive assistance helped me a lot in working out many technical issues. The support of Fr d ric Klopfert and Jan De Meester, directors of the Integri management team, is also highly appreciated. They encouraged me to start this work and they gave me the opportunity to participate in many interesting projects.

For their patient assistance with all my questions related to the elaboration of the final manuscript and for the constant encouragement during the whole project, I acknowledge Ruth Harris and Tim Pitts from Artech House Books.

Last, but definitely not least, I want to thank my wife, Valentina, my daughter Cristina, and my son Matei for their overwhelming love, devotion, and understanding that helped me to finish the work on this book.

About the Author

Cristian Radu was born on September 2, 1962, in Craiova, Romania. In 1981 he obtained his B.A. from the High School Of Mathematics and Physics Nicolae Balcescu of Craiova. In 1986 he graduated from the Automation and Control Faculty program at the Polytechnic University of Bucharest, Romania. He holds a Ph.D. in electrical engineering from the Catholic University of Leuven, Belgium.

After his graduation, Dr. Radu worked as an electrical engineer with the Automation Institute of Bucharest, Romania, until January 1990. From February 1990 through March 1993 he worked as an assistant professor with the Automation and Control Faculty at the Polytechnic University of Bucharest. In April 1993, he joined the Computer Security and Industrial Cryptography Group in the ESAT Department of the Catholic University of Leuven. Dr. Radu obtained two European Union research scholarships and participated in several European research projects related to the analysis and design of electronic payment schemes. In October 1997 he defended his Ph.D. dissertation, "Analysis and Design of Offline Electronic Payment Systems". From December 1997 through March 2002, he worked as a payment system consultant for Integri NV in Belgium. Since March 2002 he has worked as an independent consultant for payment system and telecom operators in Belgium.