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Card Payments and EMV Masterclass - Part 1
Rating: 4.7 out of 5(63 ratings)
203 students

Card Payments and EMV Masterclass - Part 1

Master card payments, EMV transaction flow, authorization, clearing & settlement with real-world technical examples.
Created byManish Mohan Bhambid
Last updated 11/2025
English

What you'll learn

  • Understand the complete lifecycle of a card payment transaction
  • Differentiate On-Us vs Off-Us payment flows and SMS vs DMS systems
  • Master the EMV transaction flow using real CAPDU/RAPDU examples
  • Analyse EMV command-response communication between terminal and card
  • Gain practical knowledge applicable to real banking/fintech card issuance and payments roles

Explore related topics

Course content

1 section • 60 lectures • 2h 38m total length

  • Introduction0:30
  • About myself0:57
  • Course Curriculum Overview2:01
  • Who is this course for?0:42
  • Why is it called Card payments?0:37
  • Key Terminologies in Card Payments2:01
  • Types of Cards0:57
  • Consumer Card Types2:02
  • Corporate / Commercial Card Types1:25
  • Key Elements in Card Payments1:09
  • Authorization3:15
  • Clearing & Settlement2:09
  • Interchange Fee (POS Vs ATM)1:41
  • On Us & Off Us transaction flow2:48

    Explain honours (on-us) flow and off-us transaction flow, showing how a Metro Bank card on a metro bank or other bank ATM triggers internal checks, card networks, and issuer authorization.

  • Dual Message & Single Message system4:10
  • Single vs Dual Message system comparison3:40
  • Card Payments Fundamentals
  • What Card Schemes Exist?1:38

    Card schemes create a single connection for the acquirer, while the network handles authorization, clearing, and settlement with banks globally, enabling Visa and Mastercard cardholder access.

  • What Card Schemes Do?0:42
  • 4 Party & 3 Party Schemes0:38
  • 4 Party vs 3 Party Model comparison1:49
  • Case Study: Purchase - Card Payment Flow1:28

    Demonstrate how authorization, clearing, and settlement occur in a real purchase, outlining the roles of cardholder, issuer, acquirer, merchant, and Mastercard network, and explain interchange and merchant discount rate.

  • Authorization with message flow3:53
  • Clearing in more detail8:20
  • Settlement in more detail1:55
  • Payment Schemes & Technical Flow
  • Anatomy of a Payment Card1:37

    Review the exterior features of a payment card—pan, expiry date, and cardholder name—and explore the chip (icc) as a mini computer with cryptographic keys and mag stripe fallback.

  • Whats inside EMV chip?2:58
  • CAPDU & RAPDU1:46
  • Sample Command (CAPDU) & Response (RAPDU)1:39
  • Card & Chip Basic Structure
  • EMV Transaction flow - overview1:20

    Explore the EMV transaction flow from inserting the card's chip and ATR to application data, CDA-based offline data authentication, CVM, online authorization, and completion.

  • Start of an EMV transaction: Cold & Warm Reset1:41
  • Answer to reset2:33
  • Application Selection1:57

    Explore how a card chip stores data and logic for transactions, with multiple applications such as debit and transit, defined by Visa and Mastercard, and how terminals select correct application.

  • What is a Payment application?1:44

    Compare PSC and ID methods: PSC browses the card directory to pick a match; ID tests AIDs to form a candidate list, reflecting modern EMV versus legacy PSC.

  • Payment System Environment (PSE) method1:29
  • AID structure1:10
  • AID Method : Buidling Candidate List3:03
  • Command <> Response : Buidling Candidate List3:48

    The terminal builds a candidate list by querying card applications one by one, confirming two common apps (ending in 10 and 12) via select commands and FCI responses.

  • Final Selection2:57
  • What are Data Object Lists (DOLs)?2:43
  • EMV Transaction Flow – Reset, ATR, and Application Selection
  • Initiate Application Processing - GPO1:14
  • Initiate Application Processing - Command & Response3:23
  • AIP ( Application Interchange Profile)2:16
  • AFL (Application File Locator)3:50
  • Read Application Data6:46
  • Terminal Verification results (TVR)2:58
  • TVR Byte 1: Offline Data Authentication2:44

    Explore offline data authentication, including sda, dda, and cda, to confirm card authenticity and data integrity; dda and cda are most common, with cda the strongest.

  • TVR Byte 2: Processing restrictions4:20
  • TVR Bute 3: Cardholder Verification Methods (CVM)2:55

    explains TVR byte three, CVM, including offline PIN, online PIN, signature, combined KVM, and no KVM, and how each method is verified by the issuer and the terminal.

  • TVR Byte 4: Terminal Risk Management10:37

    Explore terminal risk management in TVR byte 4, including floor limit logic, random online checks, and velocity checks with ATC and last online ATC counters.

  • Terminal Action Analysis5:06

    Analyze the terminal action by comparing TVR bytes with issuer and terminal action codes to decide whether to reject offline, go online, or approve offline via generate AC.

  • Card Action Analysis5:15
  • Online Processing : ARQC3:41
  • Online Processing: ARPC1:50
  • Issuer to Card Script Processing2:10
  • EMV Transaction Completion1:11
  • Recap - EMV Transaction Flow6:31
  • Contactless EMV Transaction Flow3:43
  • TTQ & CTQ1:50
  • About EMVco2:16
  • EMV Transaction Flow – Advanced Concepts
  • What to expect in upcoming parts?1:25

Requirements

  • No prior knowledge is required — everything is explained from the basics.

Description

Welcome to the Card Payments and EMV Masterclass – Part 1, the most comprehensive beginner-to-advanced program designed for anyone who wants to truly understand how card payments work behind the scenes. This course takes you from foundational concepts all the way to the deep technical communication between the chip and the terminal, ensuring you gain both clarity and confidence in how modern payment systems operate.

We start with the basics of card payment terminology, payment ecosystem participants, and the flow of funds. From there, we move into increasingly advanced topics, including the internal structure of EMV chips, risk parameters, terminal decision logic, cryptogram generation, and detailed APDU command-response walkthroughs.

Key Highlights:

  • Card payments fundamentals

  • Key terminolgies

  • Authorization, Clearing & settlement

  • On-Us vs Off-Us flows

  • SMS vs DMS systems

  • 3-Party vs 4-Party models

  • EMV chip architecture and directory structure

  • Chip–terminal communication (CAPDU/RAPDU)

  • Full EMV transaction flow explained step-by-step

  • Contactless EMV transaction flow

  • Introduction to EMVCo

  • What to expect in Next parts

Whether you work in FinTech, banking, payment gateways, card issuing, acquiring, processing, QA, development,  or product management, this course will help you build a strong technical foundation through clear explanations, layered learning, and real-world examples. Get ready to understand payments like never before.

Who this course is for:

  • Beginners who want to understand how card payments work in the real world
  • Students and fresh graduates aiming to enter fintech, banking, or payment technology roles
  • Developers, QA testers, and technical teams who want to understand EMV, chip transactions, and the end-to-end payment flow
  • Product Managers, Business Analysts, and Project Managers working on card issuance, POS systems, or payment integrations
  • Fintech professionals and startup teams building or integrating card-based products
  • Anyone curious about how card machines, banks, and payment networks communicate behind the scenes

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