Course Description
Card-based payment instrument (APMK) transactions in banking, including ATM, debit, and credit cards, in Indonesia have continuedto show significant growth over the past five years. Likewise, public awareness of the shift from cash to cashless transactions is also increasing. Bank Indonesia recorded an increase in the number of ATM and debit cards in circulation, from 48.8 million with a transaction volume of 2.001 trillion rupiah in 2010 to 98.6 million cards at the end of 2014 with a transaction volume of 4.445 trillion rupiah. Similar to ATM and debit cards, credit card transactions also continued to increase. By the end of 2014, the number of credit cards in circulation reached 16 million with a transaction value of 255 trillion rupiah.
The large value of transactions through these card-based payment systems (APMK) attracts banking criminals to profit illegally, with fraud reaching 33 billion Rupiah in 2014. One of the vulnerabilities in APMK is the card technology used. Debit cards in Indonesia still use magnetic stripe technology, which is highly vulnerable to fraud. To improve the security of credit card transactions, starting in 2006, Mastercard and Visa began implementing the international EMV standard (Europay Mastercard and Visa), which uses chip technology. Banks in Indonesia undertook a large-scale migration to EMV credit cards in 2008-2009.
For ATM and debit cards, banks in Indonesia still use the older magnetic stripe-based technology. Bank Indonesia issued a regulation, Bank Indonesia Circular Letter No. 13/22/DASP of 2011, which mandates the use of chip technology on ATM and debit cards, known as NSICCS (National Standard Indonesian Chip Card Specification). Bank Indonesia set a deadline of January 1, 2016, for all ATM and debit card transactions to use chip technology. This regulation requires all banks in Indonesia to migrate to this technology and replace all issued ATM and debit cards, estimated at over 80 million cards.
Implementing EMV and NSICCS is challenging for banks due to the complexity of the required technological elements and the numerous available technology options. Banks primarily face challenges in understanding the EMV/NSICCS concept, determining which technology to use, and the implementation steps. This training is designed to address these issues by providing an understanding of the concept of transaction security using EMV and NSICCS standards, the necessary devices and technologies, and the implementation steps.
Training Objectives
After completing this training, participants are expected to have a better understanding of card-based payment instruments (APMK) in the banking industry, governing government regulations, and technology trends in APMK. Participants will have a thorough understanding of the overall concept of card payment systems using the EMV and NSICCS standards, the components and parties involved, how EMV and NSICCS transaction security systems work, the available technology options, and the implementation stages. Participants will understand the key considerations in migrating from the legacy card standard (magnetic stripe) to EMV and/or NSICCS.