2015 January EMV Webinar - The Merchant Journey_v2

EMV: The Merchant Journey EMV for Merchants

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Disclaimer: This communication, including any content herein and/or

attachments hereto, is provided as a convenience only, does not constitute legal advice

and does not create and attorney client relationship. Because of the generality of this

communication, the information provided herein may not be applicable in all situations

and does not constitute a comprehensive list of issues that could impact your business.

As such and to understand how the information in this communication may impact your

business, you are encouraged to seek the advice from your legal counsel, compliance

and/or other subject matter expert based on the facts and circumstances of your

organization’s particular situation.

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Agenda

• Merchant Maturity

› Bridging the Gaps

• Approaching EMV

› A Cross-Functional

View

• EMV Implementations

› Stories from the Road

Merchant Maturity

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Bridging the Gaps

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• EMV is ultimately about a Merchant’s brand

› Delivery is ultimately about managing what can be

a complex cross-functional project

The EMV Implementation Journey

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The Road Ahead

Awareness

Engagement

Delivery

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• Awareness

› Merchant has limited or base understanding of

EMV

› Merchant does not have any formal projects in

flight

• Gaps to bridge

› Organizational education and engagement

› High-level scope of effort to implement EMV


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• Engagement

› Merchant approves effort to move forward with EMV

› Merchant prioritizes EMV versus other projects

› Merchant defining scope/plan and allocating budget

and resources

• Gaps to bridge

› Defining and approving plans

› Roadmap definition

› Approval of budgets

› Staffing of team


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• Delivery

› Merchant in process of enabling EMV

› Merchant making scope decisions

› Suppliers engaged and actively working project

• Gaps to bridge

› Contracts with suppliers

› Teams actively working plan

› Updates to software

› Certification planning and deployment strategy

definition


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EMV maturity correlates to merchant size and payment

sophistication

Today’s EMV Implementation Map

Aware Engage Deliver

Top 100 Merchants

QSR / Petro

Merchants < $2B

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Note: You can start your EMV journey without a Certification strategy,

but you cannot set an end date until it is defined

Where are You on the Map?

EMV Implementation

Confirm EMV Design Options

EMV Testing

EMV Training Options

EMV Education Sessions

High Level Scope

EMV Current State Analysis

Organizational Alignment

EMV Requirements

Budget & Resource Planning

EMV Roadmap

Certification

EMV Deployment

EMV Training

EMV Co-Brand Re-issuance

Aware Engage Deliver

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• Advisory

› Access to subject matter expert as the

project requires

• Education

› Standard, vertical focused or merchant

tailored

• Strategy

› Encompassing business, technical,

operational and security goals along with

a roadmap to deliver

Approaches to the Journey

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• Planning

› Guidance on expected durations and

costs for activities and insights into

approaches that can shorten schedule

• Delivery

› Provide required resources to ensure a

successful EMV implementation

Approaches to the Journey

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Engagement on the Journey

Aware Engaged Delivery

Approaching EMV

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A Cross-Functional View

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EMV is more than an IT Project

EMV

Accounting/Billing

Help Desk & Call Center

Store Operations

Information Technology

Compliance & Risk

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• Settlement

› Host vs. terminal capture may change requirements

› Settlement files include new EMV data elements

• Reconciliation

› Current reconciliation processes may need changes

• Transaction Adjustments & Exception Items

› Are exceptions handled through a virtual terminal?

› C/B rules may require changes to dispute processes

• Reporting

› Incorporate EMV data elements

Accounting and Billing

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• Card brand requirements may change internal

control processes

• Identify potential liability shift exposure

• Review company’s risk tolerance levels

› Risk Tolerance vs. Investment

• Consider implementing additional security features

› Encryption, Tokenization, SIEM, DLP

• Review fraud management approach

› Fraud shift to CNP channels

› Prepare with fraud procedures and tools to handle

Compliance and Risk

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• Retail Technology Strategy

› 2-5 year strategy in line with business objectives

› Consider other changes “while under the hood”

• Retail Infrastructure and payment applications

› Changes or updates required to site systems

including POS, payment middleware or switch

› Engage vendors in joint design sessions to ensure

accurate delivery of EMV functionality

• Terminal Management Software

› Use to monitor terminals and expedite deployment

processes

Information Technology

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• Terminal hardware and software

› Do terminals need to be added or upgraded to the

payment environment?

› Will you support contact and contactless EMV

transactions?

› More logic processed and decisions made in the

terminal requiring software updates

› Analyze the best architecture

• Fully integrated, semi-integrated or stand alone

Information Technology (cont’d)

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• Site Survey and Site Visits

› Site surveys to identify components of operations that

will be impacted

› Implementation may require visits to retail locations

• Plan appropriately to minimize return visits

• Depot Replacement

› Ensure processes for EMV terminals vs. non-EMV

terminals are in place

› Stock appropriately for hardware replacement

Store Operations

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• Customer Service Representative Training

› EMV can cause confusion for customers and

associates

• Ex: Leaving EMV card in terminal during transaction vs.

swipe

› Creating detailed and informative guides is a pillar to

successful EMV implementation

• EMV 101 to help answer consumer questions and clear

confusion

• Technology changes required to support EMV

Store Operations (cont’d)

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• Representative Training

› Help desk and call center personnel need detailed

and informative EMV information

• Help desk may support store operations from both process

and technology perspectives

• EMV 101 can help call center answer consumer questions

› Help desk must be able to help analyze, diagnose,

and remediate issues introduced by EMV

• Utilize remote diagnostic and remote update capabilities to

resolve store issues

Help Desk and Call Center

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• Increased Call Volume

› EMV will result in increased customer calls

• Cards left at store

• Cards not accepted

› Staff appropriately to adjust during initial launch at

retail locations

• Site Technician Visits

› Training required on store technology changes

› May also require staff adjustments during initial

launch at retail locations

Help Desk and Call Center (cont’d)

EMV Implementations

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Stories from the Road

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• A $2 billion domestic merchant looking to add EMV

to its 2015 POS upgrade

› EMV is not focus of project so may not be

appropriately scoped

• Impacts focus of existing and new suppliers

› Lack of organizational understanding of EMV

exposure may cause EMV to be a second or third

priority

• Causes more disruption long term

Add EMV to an Existing Project

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• Global merchant with complex routing requirements

looking to decommission switch

› Lack of understanding of business requirements

creates delays

› Organizational SME’s pulled in multiple directions

› Additional security technologies create more

complexity in design and delivery of EMV

› Prioritization and expectations of benefit timing must

be understood by all levels of organization

› Merchant has to manage multiple vendors

Remove Switch, Improve Security, Add EMV

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• Tier 1 merchant with co-brand and proprietary cards

planning to deliver EMV across U.S. and Canada in

same time period

› EMV strategy being driven by technical decisions for

Canada

• Impacts the US strategy and roadmap

› Canadian implementation typically cannot be directly

applied to U.S.

› Need to account for all payment types outside typical

credit/debit and routing implications

Implement EMV in Canada and U.S.

EMV Professional Services

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W. Capra Consulting Group

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• 14 years helping US Merchants design, enhance

and deliver payment and retail technology

infrastructures

› Comprised of Payments, Retail Technology and Security

Experts

› Focused on US EMV with International EMV experience

› Experience Across All Retail Verticals

W. Capra Consulting Group

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• Aware › Base Education

› Customized Education

› Merchant-tailored Workshops

• Engage › EMV Impact Assessment

› Roadmap/Strategy Development

› Detailed Project Planning

• Deliver › Advisory and Oversight

› Governance

› Delivery Assistance

Help for the Journey

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Questions

Documents

2015 January EMV Webinar - The Merchant Journey_v2