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Every day, we use cards, whether digital or physical, to pay for things without giving much thought to how it all works. What fascinates me is how these cards operate, not just because they’re an everyday tool we rely on so easily, but because of the incredible complexity and coordination that happens behind the scenes with every single transaction.

What seems like a simple tap, swipe, or insert is actually a finely-tuned system of technology, security protocols, and networks all working in sync to complete the payment in mere seconds.

This ecosystem is supported by key players, including issuers, processors, acquirers, and tech providers, each working behind the scenes to facilitate the transactions. In a CP scenario, the process involves several coordinated steps:

• 1. The POS system initiates the transaction by signalling the terminal to prepare for secure communication with the card.

• 2. The card insertion or tapping creates a secure connection with the terminal for data exchange.

• 3. The terminal and card communicate to select the correct payment application for the transaction.

• 4. The terminal conducts a check to ensure the card’s authenticity and prevent potential fraud.

• 5. The customer may be prompted to enter a PIN or provide biometric verification to confirm their identity.

• 6. The terminal decides whether to process the transaction offline or send it online for bank approval, based on the transaction’s risk profile.

• 7. The EMV chip cards can override the terminal’s decision and request online processing if needed for extra security.

• 8. If going online, the card creates an authorisation request cryptogram as a unique, encrypted digital signature.

• 9. The terminal forwards the payment request, including the auth, to the payment processor and issuer.

• 10. The issuing bank checks the transaction data, account status, and potential fraud indicators.

• 11. If approved, the bank sends an authorisation response cryptogram with the response to the terminal.

• 12. The terminal processes the bank’s response and updates the POS with the outcome.

• 13. Post-authorisation, the issuer may send updates to the card, such as changes to spending limits etc.

• 14. The terminal signals that it is safe for the customer to remove the card, finalising the interaction.

• 15. The terminal displays a confirmation, and a receipt may be printed or a digital notification sent to complete the process.

👉🏽#Paymentexperts, any perspectives to share on #cards🎤?

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𝑾𝒐𝒏𝒅𝒆𝒓 𝒘𝒉𝒐 𝒘𝒆 𝒂𝒓𝒆?

𝘞𝘦 𝘢𝘳𝘦 𝘢 𝘵𝘦𝘢𝘮 𝘰𝘧 𝘗𝘢𝘺𝘮𝘦𝘯𝘵𝘴 𝘚𝘵𝘳𝘢𝘵𝘦𝘨𝘪𝘴𝘵𝘴 𝘣𝘭𝘦𝘯𝘥𝘪𝘯𝘨 𝘰𝘶𝘳 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘺 𝘦𝘹𝘱𝘦𝘳𝘵𝘪𝘴𝘦 𝘸𝘪𝘵𝘩 𝘢 𝘤𝘳𝘦𝘢𝘵𝘪𝘷𝘦 𝘢𝘱𝘱𝘳𝘰𝘢𝘤𝘩 𝘵𝘰 𝘢𝘴𝘴𝘪𝘴𝘵 𝘰𝘶𝘳 𝘤𝘭𝘪𝘦𝘯𝘵𝘴 𝘵𝘩𝘳𝘰𝘶𝘨𝘩 𝘊𝘰𝘯𝘴𝘶𝘭𝘵𝘪𝘯𝘨, 𝘚𝘵𝘳𝘢𝘵𝘦𝘨𝘺, 𝘙𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘢𝘯𝘥 𝘛𝘩𝘰𝘶𝘨𝘩𝘵 𝘓𝘦𝘢𝘥𝘦𝘳𝘴𝘩𝘪𝘱 𝘱𝘳𝘰𝘫𝘦𝘤𝘵𝘴.

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