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Jerry R Smith
EMV – The New Landscape21 Days & 12 Hours
Talking Points
• Who are the companies:– First Data– Ignite Payments
• EMV – What, Why, How and Does it apply to your company?
• The Flow of a Credit Card Transaction• Processing Environments• PCI (Payment Card Industry)• Cost Savings Tips & Incentives • Q&A
Who is First Data?
• #1 Acquirer in the industry– Responsible for over 70% of all the
transactions processed in the US.
• Has over 600 channels that “resell” their services.– Ignite Payments– ISO– RSA– Wells Fargo– PNC
• Processes over 1 million EMV transactions per month
Who is Ignite Payments?
• Subsidiary of First Data
• Comprised of over 400 agent offices throughout the US
• Ignite Payments AIP – Agent office in Scottsdale, Arizona– 60+ Endorsements/Partnerships– Manage over $1 billion in annual credit
card receipts– Less than 1% attrition
Terminology
• Associations– MasterCard, Visa, Discover & American Express
• Issuing Banks– i.e. Capitol One, etc.
• EMV– Europay, MasterCard & Visa
What Does EMV Mean To You?Added Layer of Security
Liability Shift to Merchants
EMV Statistics
• U.S. is set to transition:– 1.2 billion payment cards– 8 million point-of-sale (POS) terminals
• Estimated cost to issuers and merchants will exceed $6.8 billion in the U.S.
Why EMV?
Who Pays for Fraudulent Transactions?
• Cardholders
• Issuing Banks
• Merchants
• Processors
Cardholder
• Credit Card:– Maximum of $50.– Zero liability if reported lost or stolen prior to any transactions.– No liability for “card not present” transactions.
• Debit Card:– Zero liability if reported lost or stolen prior to any transactions.– Up to $50 if reported within 2 business days.– After 2 business days, but less than 60 calendar days $500.– After 60 calendar days, up to the entire amount.
Issuing Banks
• Bad Debt • Fraud
Leverage -- Chargebacks
Merchant
– Interchange is what MasterCard, Visa and Discover & American Express charge every processor in the US. (it is the true cost of the transaction)
– Based on the risk associated with the transaction & how “rich” is the rewards program.
– Evaluated twice a year – April & October
– 90% of your bill is derived from Interchange, dues and assessments.
Interchange + Pricing
Processors
• Ultimately Responsible
The Flow of the Transaction
Credit Card Processor Member
InterChange +
The Flow of the Money
Processing Options
• EMV Devices -- Capable versus Certified – (4-6 month process)
• Stand Alone Terminals– (Dial up or Ethernet – FD130)
• Peripheral FD Devices – (FD35 & 40)
• ERP’s and POS Systems – (MX915, VX805 and MagTek DynaPro)
• Mobile Device – (Clover Go)
• Wireless Terminals – (FD410)
• Gateway – (Same as ERP’s and POS Systems)
Clover Go
• First Data’s EMV Certified Mobile Solution• Launching September 12th.
***Incentive – up to 3 “Clover Go’s” at no cost for any attendee who signs up for this
program by the end of September***
PCI Certification
• Originated in 2005 – Mandated 2010• Annual Self Assessment Questionnaire• Monthly non-validation fees – Fines will be more• Quarterly Scans
90% of data breaches impact small businesses
***If you “swipe” transactions, upgrade your current processing environment to be able to accept chip cards***
TransArmor Solution
• Proprietary to First Data• TransArmor -- Encrypts & Tokenizes• $100k Breach Assistance• Quarterly Scans (if applicable)
Cost Savings Tips & Incentives
• B2B – Level 2 and/or 3 Processing• B2C – Mobile App• NCTC – Emerging Market • All Attendees -- Downgrades
Does EMV Apply to your Business?
• Swiped – if you swipe 1 transaction it applies• MOTO (mail order/telephone order) & eCommerce • 3-D Secure:
– AKA – Verified by Visa and MasterCard Secure Code– First Data is certified
Next Step
• Audit your existing processing environment:– Use your current processor OR– Allow Ignite Payments to audit your existing environment and
quantify any cost savings
Webinar Incentive -- $1,000 Gift Card Drawing Statements must be received by 5pm PDT on 9/16/2015
Drawing to be held at 8am PDT on 9/17/2015
Gretchen [email protected]
Fax 866-867-1084 Attention: GretchenMust mark “Webinar Attendee”
Call 866-460-2113 Ext 100
Additional Resources:www.firstdata.com/emv
www.emv-connection.com
Questions & Answers
