EMV Transit Management

Cardtek EMV Transit Management
In Europe alone, more than 57 billion travels take place with inner-city public transport. This generates an annual transaction volume of approximately 150 billion Euros. The market’s volume and user rates establish the future visions of banks and global card companies.
In today’s cities, there are a variety of metro, busses, light rail systems, ferries, connected with stops, stations, lines, zones, and transfer points.
there are different profiles of users including students, elders, pensioners, and workers, Therefore different fee structures and complex systems are used based on the time, location, frequency of use, profile, distance, and changing zones.
, these systems are changing from token and paper ticket components to EMV open loop sysems at global standards With account based structures
So, how can we use the contactless bank cards we carry in our wallets for transportation? With this contactless card, how do we adapt to these complex systems and fee infrastructures? How can we actualize the transformation on currently established infrastructures with minimum change and cost?

The first step is to accept the Open loop cards in the terminal, install the secuity kernel and update the terminal software.
In the second step, a central host system is provided. This system is situated on a PCI DSS certificated data center. The current close loop card system and the AFC system is not affected by this setup therefore there is no need for migration.
Next, current automated fare collection and risk management system solutions (if any) are appropriately integrated with global systems. Finally, the contracted bank carries out the integrations in accordance with global regulations.
With the exception of PCI DSS, all areas are separated with a special tokenization infrastructure and token numbers are used instead of sensitive data. This way, all of the costs and transformations required for appropriating the entire infrastructure to PCI regulations are removed.

Within the day, inconsistent or nominally consistent offline transactions take place over the terminals via credit, debit, prepaid cards, HCE, NFC, and wearable devices. When offline transaction times are less than 500ms, people do not have to wait in log lines.
These transactions are transmitted to the ETM host system when the terminal becomes online. When the transactions are transmitted to the ETM services, in order for the risk controls and fare calculations to be done simultaneously, the required parameters for token info and fare calculations are sent to the AFC system.

If the risk management dejects a risky situation or when the limit usage thresholds are exceeded an authorization request is sent to ETM solution.
In response to the authorization request, the ETM system generates a transaction in the requested amount and sends it to the associated bank and resends the response to the risk management module once again
The same flow is carried out throughout the day for all of the passenger’s transactions, which are collected. Data from the bus rides, transfers, information on changed zones, and used lines are logged by the two systems
At the end of the day, the AFC system uses parameters like the passenger’s entire transactions, transfers, and different line uses and calculates the final fare and sends it to the ETM system with a “settlement” request. The ETM system generates the “settlement” record and submits this record to the associated bank for payment.
Because the system directly sends the transactions to the banks and can do On-us transmissions, there are no additional fees and different pricing options by bank can be applied.
Non-member banks can conduct transactions by using a chosen default acquirer bank. In this situation, the chosen acquirer bank manages all of the settlement processes.
Cardtek presents a solution that allows the use of open loop cards in transportation that are suitable for variable fare models and saves current systems from strict security regulations. This solution allows for small upgrades and integrations, the minimization of cost and time, and open loop acceptance for current systems.