transaction:
• Data elements set at personalization
• Data elements linked to the current transaction • Data elements linked to the previous transactions
This section briefly describes the impact of each data element on Card Risk Management.
3.3.1 Card Issuer Action Codes
The Card Issuer Action Codes are data elements that allow you to specify the conditions that determine:
• Whether the M/Chip 4 application declines or approves a transaction offline
• Whether the M/Chip 4 application sends the transaction online when the transaction is performed at an online-capable terminal (e.g. when the offline limits are exceeded).
Refer to the “Card Issuer Actions Codes” section in chapter 2 for further details.
3.3.2 CRM Country Code
The CRM Country Code contains the country specified by the issuer. The M/Chip 4 applications use the CRM Country Code internal data element to differentiate between domestic and international transactions as follows: • If the CRM Country Code matches the Terminal Country Code, the
transaction is domestic.
• If the CRM Country Code does not match the Terminal Country Code, the transaction is international.
An action (decline or go online) can be triggered based on the Card Issuer
3.3.3 CRM Currency Code
The CRM Currency Code is an internal data element containing the currency of the Cumulative Offline Transaction Amount. The M/Chip 4 application uses the CRM Currency Code and the Currency Conversion Table to determine which of the two offline counters, the Cumulative Offline Transaction Amount and the Cumulative Offline Transaction Number, to increment.
An action (decline or go online) can be triggered based on the Card Issuer
Action Code settings if the offline counters (Cumulative Offline Transaction
Amount and Cumulative Offline Transaction Number) exceed the limits.
3.3.4 Lower Cumulative Offline Transaction Amount
The Lower Cumulative Offline Transaction Amount is an internal data element that specifies the lower value used to check against the Cumulative Offline
Transaction Amount in either of the following situations: • The transaction is in the counter currency.
• The M/Chip 4 application can convert the transaction into the counter currency.
An action (decline or go online) can be triggered based on the Card Issuer
Action Code settings of the ‘Lower Cumulative Offline Limit exceeded’ bit.
3.3.5 Upper Cumulative Offline Transaction Amount
The Upper Cumulative Offline Transaction Amount is an internal data element that specifies the upper value used to check against the Cumulative Offline
Transaction Amount in either of the following situations: • The transaction is in the counter currency.
• The M/Chip 4 application can convert the transaction into the counter currency.
An action (decline or go online) can be triggered based on the Card Issuer
3.3 Configuring Card Risk Management Data Elements
3.3.6 Lower Consecutive Offline Limit
The Lower Consecutive Offline Limit is an internal data element that specifies the lower limit that is used to check against the Consecutive Offline
Transactions Number in either of the following situations: • The transaction is not in the counter currency.
• The M/Chip 4 application cannot convert the transaction into the counter currency.
An action (decline or go online) can be triggered based on the Card Issuer Action Code settings of the ‘Lower Consecutive Offline Limit exceeded’.
3.3.7 Upper Consecutive Offline Limit
The Upper Consecutive Offline Limit is an internal data element that specifies the upper limit that is used to check against the Consecutive Offline
Transactions Number in either of the following situations: • The transaction is not in the counter currency.
• The M/Chip 4 application cannot convert the transaction into the counter currency.
An action (decline or go online) can be triggered based on the Card Issuer Action Code settings of the ‘Upper Consecutive Offline Limit exceeded’.
3.3.8 Currency Conversion Table and Currency Conversion
Parameters
The Currency Conversion Table is an internal data element that you define. If the Currency Conversion Table contains the transaction currency, the M/Chip 4 application converts the transaction amount, using the Currency Conversion
Parameters, and adds the transaction value to the Cumulative Offline
Transaction Amount.
If the Currency Conversion Table does not contain the transaction currency and the transaction currency is not the currency of the Cumulative Offline
Transaction Amount (i.e. the currency of the CRM Currency Code), the M/Chip 4 application does not convert the transaction value. Instead, it counts the transaction by incrementing the Cumulative Offline Transaction Number. To ensure the accuracy of the Cumulative Offline Transaction Amount, you should avoid currencies with a highly volatile conversion rate against the
3.3.9 Default ARPC Response Code
The Default ARPC Response Code is an internal data element that you define during personalization. It allows you to customize the application behavior when there is no Issuer Authentication Data for an online transaction. The setting of the Default ARPC Response Code is only active if the magstripe grade issuer mode is supported (in the Application Control). The Default
ARPC Response Code replaces the ARPC Response Code when all of the following conditions are met:
• The Issuer Authentication Data is not present in an online transaction. • The magstripe grade issuer mode is activated (i.e. Application Control [1][8]
is set to ‘1b’).
• The transaction is approved by the terminal and issuer which means: − The Authorization Response Code is neither ‘Y3’ (“Unable to go
online—Offline approved” response code generated by the terminal at second GENERATE AC) nor ‘Z3’ (“Unable to go online—Offline declined” response code generated) and
− The terminal requests a TC.
Table 3.4 provides the values that you must use for the personalization of the
Default ARPC Response Code.
Table 3.4—Mandatory Values for Default ARPC Response Code
Bit Meaning Value
Byte 1
8-5 Reserved ‘0000b’ mandatory
4-1 PIN Try Counter ‘0000b’ mandatory
Byte 2
8-6 Reserved ‘000b’ mandatory
5 Approve online transaction ‘1b’ mandatory
4 Update PIN Try Counter ‘0b’ mandatory
3 Set go online on next transaction ‘0b’ recommended 2-1 Update counters – reset counters to zero ‘10b’ mandatory
3.3 Configuring Card Risk Management Data Elements
3.3.10 Additional Check Table
The Additional Check Table is an internal data element that you define during personalization.
The M/Chip 4 application compares the values in the Additional Check Table with the values given by the terminal in CDOL 1 Related Data. The M/Chip 4 application reflects the result of this comparison in the decision-making information part of the Card Verification Results.
The M/Chip 4 application only checks the Additional Check Table when the
Application Control [2][3] is set to ‘1b’.
3.3.11 CDOL 1 and CDOL 2 Related Data
Transaction-related data is communicated to the application via the CDOL 1
Related Data and CDOL 2 Related Data data elements. Table 3.5 identifies this data and briefly describes the role it plays in Card Risk Management.
Table 3.5—Role of CDOL-Related Data in Card Risk Management
Data element Role in Card Risk Management
Amount, Authorised and Transaction Currency Code
Used to determine if the offline counters would exceed the limits.
Terminal Country Code Used to determine if the transaction is domestic or international.
Terminal Type Used to determine if the terminal is offline only and if it is CAT level 3.
CVM Results Used to check that the terminal is not misled about the offline PIN verification.
Issuer Authentication Data Used to determine the actions that you decided upon in an online transaction.
Authorization Response Code Used to determine the action decided by the terminal in an online transaction or if the terminal cannot go online.
If the M/Chip 4 application also uses the Additional Check Table, other information from CDOL 1 Related Data may also influence the Card Risk Management.
3.3.12 Offline PIN, PIN Try Counter and PIN Try Limit
The PIN Try Counter is an internal counter that counts the number of offline PIN tries remaining. Whenever the correct PIN is entered, the PIN Try Counter is reset to the PIN Try Limit.
You can customize the M/Chip 4 applications as follows: • To support offline PIN
• To set the PIN Try Limit
• To trigger an action (decline or go online) in the following situations: − When offline PIN verification is not performed
− When the offline PIN verification performed is incorrect − When there are no PIN tries remaining
3.3.13 Previous Transaction History
The Previous Transaction History data element keeps track of events that occurred in previous transactions. You reset the Previous Transaction History in an online transaction.
The following events related to a previous online transaction are kept in the
Previous Transaction History:
• You decided that the next transaction should go online. • The issuer authentication failed.
• A script command was processed. • A script command failed.
You can customize the M/Chip 4 application to trigger a specific action (e.g. go online) if one of the above events took place.
3.3.14 Application Control
The Application Control enables you to:
• Activate or inactivate the magstripe grade issuer mode.
• Allow the application to skip or not to skip the CIAC – Default check on the CAT level 3 terminals.