EC
European Community, also called EEC, European Economic Community


EC card
Counterfeit protection for first-generation bank and credit cards was simple: visual features such as security stamps, embossing (an early form of machine readability) and signature were all that was available. An important step towards electronic payments came with magnetic stripe technology; from now on data could be stored on the magnetic stripe in digitalized form. However, at 1000 bits their capacity was not that large, although it was enough to allow main details such as account number, name, or last transaction to be manipulated or copied. Something special was therefore devised for the EC card: cards provided with the MM feature developed by G&D can be submitted to an authentication test at all suitably equipped ATMs. After the existence of the feature has been checked, the results are encrypted and compared with a check value on the magnetic stripe. Any counterfeiting of the card by changing or copying the data on the magnetic stripe is therefore impossible and pointless. Cards are also checked for the existence of this feature in G&D payment transaction terminals in retail outlets. Any data that has been manipulated is identified and duplication of the card is effectively prevented.


EC debit procedure
Electronic payment transaction systems in which customers can pay using their Eurocheque card (or bank debit card) and a signature (rather than a PIN). Each amount is deducted separately from the customer’s account by debit entry. The system developed by the German credit services sector carries the “POZ” label (Point of Sale without guarantee of payment). Various providers offer ELV (Elektronisches Lastschriftverfahren or Electronic debit procedure) with or without guarantee of payment, as well as OLV (Online-Lastschriftverfahren or online debit procedure).


e-Cash/Electronic Cash
Payment system to be introduced for online services and the Internet which is similar to credit cards.


ECB
European Central Bank


ECC
The Error Correction Code is a checksum for data. The ECC can be used to identify errors in data according to a specific probability and correct this if necessary. The acronym ECC also stands for cryptosystems based on elliptic curves (elliptic curve cryptosystem).

ECI-compatible
Can be used in the ATM network of Europay International, e.g. international Eurocheque card; or ATMs that accept international EC cards.


E-commerce/electronic commerce
General term for business transactions conducted over data networks. These include goods ordering over the Internet and contact between individual companies.


Econote
A banknote product designed especially for small denominations that offers a high level of counterfeit protection and is extremely robust.


EDC
= Electronic Debit Card – electronic payment system of Europay International used to process international transactions; currently only partially with signature. German customers for example can use their EC card to pay at Austrian EFTPoS terminals.


EDC
The Error Detection Code is a checksum for data. The EDC can be used to identify errors in data based on a specific probability. A typical example of an EDC is the XOR or CRC checksum used in various data transmission protocols.


EEPROM
Stands for Electrically Erasable Programmable Read Only Memory and is an erasable, non-volatile memory type. This memory is used to store editable information even when the power is turned off. In smart cards it can be used to store status information and modifiable user data.


EFT
= Electronic Funds Transfer – electronic payment transfer system


EFTPoS
Electronic Funds Transfer at the Point of Sale, payment system that allows consumers to make electronic payments at cash tills at retail outlets and service providers.

eiManager^TM
Software used to maximum the profitability and availability of ATM networks.


Electrical conductivity
The electrical conductivity of the security thread can be measured using sensors and used as a machine-readable authentication feature.


Electronic cash
System of the German credit services sector that allows consumers to make electronic payments to retailers and service providers. It requires 100 percent online authorization and PIN entry.


Electronic payment transaction
Electronic payment transactions come in many forms: the electronic purse (or money card), buying via BTX, Internet payments or, as in Japan, securities transactions over the Internet. For years almost everyone has been drawing cash from their account electronically or paying electronically with an EC card (electronic cash). Electronic payment transactions between banks go even further back. For decades, banks have been sending hundreds of millions of dollars over networks as bits and bytes. Nowadays more and more users are seeking access to worldwide data networks. Secure data transfer, authentication and integrity are essential requirements. Banks and credit card organizations are increasingly communicating with one another on communication standards. Chip cards are playing an increasingly important role here as miniature personal and secure PCs.


Electronic purse
The electronic purse (or money card) is just one of many chip card applications. To use it, you first load your card with cash at the bank counter. It is mostly used for purchasing and paying in small amounts. The electronic purse will be used more and more in future, especially for applications that require the right change, such as parking meters or on the bus, and generally for buying things from machines, like coffee, cigarettes or sandwiches. The software in the terminals means that you’ve always go the right change.

Elliptic curve cryptography
Cryptographic methods based on operations using elliptic curves (complex mathematical objects which will not be explained in detail here). Published by V. Miller (1986) and N. Koblitz (1987). The advantage of them is that key lengths can be shorter for a given degree of security than for other public keys. The method is faster as a result.


ELV
“Elektronisches Lastschriftverfahren” or electronic debit procedure; payment system by which customers identify themselves by PIN rather than their signature. This is called the “wild procedure” by the German credit services sector, as it is in direct competition with their electronic cash and POZ (point of sale without guarantee of payment) systems.


Embedding
The OLE function for linking and embedding objects can be used to transfer information from a source document to a target document. An embedded object is a copy of information from a source document which is inserted in a target document. However, the object is not linked to the original document.


Embossed hologram
In an embossed hologram the holographic image information is transferred in an embossable structure and can then be duplicated through mechanical imprinting on a suitable film surface. This process makes it possible to replicate single holograms economically and thereby allows the mass production and distribution of embossed holograms on a commercial basis, e.g. for advertising purposes, but also for protecting confidential documents.


Embossing
Embossing on plastic cards, for example name and account number on credit cards for mechanical imprinting of a document inserted in the reader slot together with the card.

EMV
General specification for payment transaction cards with a chip and associated terminals of the Europay, MasterCard and Visa companies. These specifications have become the worldwide industry standard for credit, debit, and money cards and are thus the payment transaction equivalent of the GSM 11.11 telecommunication standard.


EMV specification
See EMV


Encryption
Encoding of a message with secret keys and complicated mathematical algorithms. There are basically two encoding procedures: In the “symmetrical” approach, the same secret key (DES) is used by the partners to encrypt and decrypt. It is important that all communication partners keep this key a secret. For the digital signature, the “asymmetrical” procedure is used with a key pair that comprises a secret key and a public key (RSA algorithm). The private key can only be used by the person it was assigned to. The public key, on the other hand, is available to all business partners in the database. The public key can be used to check the signature, but not to create one. The private key is therefore assigned to one person and must be kept secret by them. If the private key is generated by and saved in a smart card, no one will know it–not even the holder of the smart card.


EPROM
An Erasable Read Only Memory is a non-volatile type of memory that is now rarely used in chip cards. An EPROM can only be deleted by UV light, which is why in chip card applications it can only be used as WORM storage (write once, read multiple).


EPSS
European Payment Systems Services; international data network of Europay International.

ETC
= electronic toll collection, a collective term for procedures used to record fees and charges without user interaction. Used mostly in area of transportation for road tolls, parking garage fees, and tickets on public transportation systems.


Ethernet
Network type developed for LAN networks by INTEL, DEC and Xerox that uses coaxial cables for transmission.


ETS
The European Telecommunications Standard is the name given by the ETSI to standards mainly affecting European telecommunications.


ETSI
The European Telecommunications Standards Institute, based at Sophia Antipolis, near Nice, France, is the standards institute for the European telecommunications industry. The main ETSI standard relating to chip card applications is the GSM standards series (GSM 11.11 etc.).


ETU
Elementary time unit: approximately the time taken by the card to send one bit, as defined by ISO standards.


Expansion card
Add-on placed in one of the (usually seven) slots of a computer.