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A Case Study in EMV Mobile ServicingPilot for Target Prepaid REDcard from American Express®
Introduction
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Bodhi ChoudhuriVP of Engineering American Express Technologies
Patrick DostalDirector of Product Development American Express
What is REDcard?
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Target’s loyalty card program that gives cardholders 5% off online and at point of sale, free shipping, and extended returns.
Problem Statement
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Credit and Debit REDcard required prospects to be bankable and had limited spend control features.
• Debit REDcard• Requires a bank account to connect.
• Credit REDcard• Requires a credit check.
• Unbanked, under-banked and customers who did not want another credit/debit product could/did not get access.
The Solution
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Run a limited pilot to explore rounding out the mix with an accessible card account with a rich feature set.
• Target Prepaid REDcard from American Express®
• No credit check• No bank account required• Spend control features
• POS cash loading• Reserve Account• Mobile servicing
Mobile Servicing with Prepaid REDcard
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Prepaid requires servicing on-the-go. The fully responsive site enables all servicing capabilities.
• Mobile Servicing Features• Check balance• See transactions• Load card account
<web link
The Breach Situation
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In 2013 Target suffered a large breach that changed the processing landscape for Target and REDcard.
• Target Breach Fallout• Target’s CFO testified in a Senate
hearing that Target will “begin to issue chip-enabled Target REDcards and accept all chip-enabled cards by early 2015.”1
1. https://corporate.target.com/_media/TargetCorp/global/PDF/Target-SJC-032614.pdf
EMV Requirements
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Prepaid REDcard would be required to align with the EMV requirements of the rest of the REDcard portfolio.
• EMV Enabled Card• Must be EMV-enabled
• PIN-preferring Card• Must meet PIN preferring
requirements for Target POS• PIN Servicing Requirements
• Must allow customer PIN selection and PIN servicing
The EMV Solution
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Launch chip and PIN enabled version of the Prepaid REDcard® with all PIN servicing features of REDcard.
• EMV Enabled Card• Must be EMV-enabled
• PIN-preferring Card• Enabled with chip and offline PIN
• PIN Servicing Requirements• Self-select PIN• View PIN• Change PIN
Mobile Servicing with Chip/PIN Prepaid REDcard
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Chip and offline PIN introduces servicing complexities that we solved for through mobile servicing.
• EMV Mobile Servicing Features• Check balance• See transactions• Load card account• View PIN• Change PIN
<web link
Next Steps with Prepaid REDcard®
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We’ve been able to see success with Prepaid REDcard but are now awaiting decisions to take it national.
• Migrate existing mag-stripe customers to EMV
• Determine national roll-out