The document discusses a pilot program for a prepaid Target REDcard from American Express that does not require a credit check or bank account. It aimed to be more accessible than previous credit/debit REDcards. A mobile app was developed to allow card services like checking balances and loads on the go. However, the 2013 Target breach required EMV-enabled chip cards. So the prepaid card was updated with an EMV chip and PIN capability while retaining mobile services. The pilot was successful and may now expand nationally if approved.

1. A Case Study in EMV Mobile Servicing
Pilot for TargetPrepaid REDcard from American Express®

2. Introduction
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Bodhi Choudhuri
VP of Engineering
American Express Technologies
Patrick Dostal
Director of Product Development
American Express

3. 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.

4. 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.

5. 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

6. 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

7. The Breach Situation
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In 2013 Targetsuffered a largebreach that changedthe processing landscapefor
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

8. EMV Requirements
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Prepaid REDcardwould berequired to align with the EMV requirements ofthe
rest of the REDcardportfolio.
• 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

9. The EMV Solution
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Launch chip and PIN enabledversion 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

10. Mobile Servicing with Chip/PIN Prepaid REDcard
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Chip and offline PIN introduces servicing complexities that wesolvedfor
through mobile servicing.
• EMV Mobile Servicing Features
• Check balance
• See transactions
• Load card account
• View PIN
• Change PIN
<web link

11. Next Steps with Prepaid REDcard®
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We’vebeen able to seesuccess with Prepaid REDcardbut arenowawaiting
decisions to take it national.
• Migrate existing mag-stripe customers to
EMV
• Determine national roll-out