"EMV technologies: financial and information applications, loyalty programs" lecture

The lecture is devoted to financial applications, loyalty applications (smart card applets) and data storage applications used within the EMV technology

The lecture covers the following subjects:

  • a brief overview of EMV, adjacent technologies and standards, types of additional smart card applications, their advandages and disadvantages;
  • detailed description of financial transaction flow;
  • loyalty applications;
  • description of data storage applications.

Financial applications: EMV transaction flow

Each step of a EMV transaction is discussed in detail. Specifically, the following questions are covered:

  • ways of application selection;
  • the essence and peculiarities of data verification in offline mode (SDA, DDA и CDA);
  • processing restrictions;
  • cardholder verification;
  • authentication cryptogram generation;
  • card and terminal risc management;
  • VSDC и M/Chip cards risc management peculiarities.


General questions on loyalty are discussed:

  • the essence of loyalty programmes and paths of client attraction;
  • major participants of loyalty programmesо, their roles and interaction schemas;
  • ways of granting discounts using the bonus system, including the consideration of time factor.

Rules, conditions and capabilities of loyalty system, which must be anticipated by loyalty programme operator, ways of securing operations.

An example of a loyalty programme is discussed:

  • rules, counters, access conditions;
  • loyalty applet structure;
  • security considerations.

Data storage applications

Ways of storing constant information about cardholder are discussed.

A simple data storage application, created using PSE technology, as well as Visa and MasterCard data storage applications are described:

  • V3S - Visa Smart Secure Storage;
  • MODS - MasterCard Open Data Storage;

The operations logic, security features, data access conditions, types of cards, required to apply these solutions are discussed.