During each attempted transaction authorization, the transaction authorization system and card management system on the back-end must react within milliseconds to complete a number of tasks, in order to authorize the transaction and update the card, while it still remains available in the terminal:

  1. Receive and interpret the authorization request incoming from merchant acquirer network.
  2. Respond to the authorization request (ARQC) with an authorization response (ARPC)
  3. With response, return any instructions from the card management system to the card and application(s) in question

The above outlines what needs doing - to orchestrate all this, even more must happen on the back-end:

Incoming Authorization Request

On the basis of the card number (PAN) and from that product identifier (BIN), the appropriate keys must be looked up, and used to derive the keys already in the app on the card.

Authorization Response

Matching the keys and validating the incoming transaction request, allows the transaction to the proceed. Typically a core banking system will decide if there is sufficient security on the account to accept the transaction. With this in place, the response indicating accept or decline is assembled and is returned back over the merchant acquirer network.

Card Management in the Field

Since the previous transaction, a number of events may have happened to the account in question. Perhaps the PIN was changed, perhaps a PIN limit reset, perhaps offline velocity paramters modified, or perhaps an app or the card was revoked. In all of such cases, the backend system prepares a set of card management commands to submit to the card on the next transaction alongside the authorization response. It is the responsibility of the transaction authorization part of the card management system to keep track of scripts being attempted sent to the card, as well as monitoring the status of whether or not such scripts have been successfully deployed.

The above outlines an EMV card management and transaction authorization system. To learn more about Aconite's Transaction Authorization and Card Management system, please contact us.

 

Resources

Product Collaterals (pls ask)

Standards (Links)

Payment Schemes (Links)

Common Abbreviations