This is a mandatory field, 1 to 16 characters long and alphanumeric, sent in tag 50 in EMV transactions.
The Application Label field is a mandatory data element, coded as an alphanumeric string of 1 to 16 characters, representing a name related to the AID of the card application in the ADF. It is defined in ISO 7816-5. The card application provider specifies the Application Label for display on the terminal's human-machine interface at the point of service. The Application Label is generally the commercial brand of the payment product.
Where does the Application Label appear?
When a card is inserted, if there is more than one application on the card, the terminal may prompt the user to make a selection. Names such as "VISA DEBIT" or "MASTERCARD" that appear on this screen come from the Application Label value.
The label is for display purposes only; it is the AID that determines how the transaction is routed. Different labels can be used for the same AID, which is why the label is not a reliable field for authentication or product differentiation.
On the terminal software side, care must be taken with the 16-character limit so that characters that do not fit on the screen are not cut off or overflowed. Consistent display on the receipt and on the screen is also beneficial for building user trust.
