EMV Migration Webinar / Lessons Learned + Next Steps

EMV Migration Webinar / Lessons Learned + Next Steps

NOVEMBER 19, 2015

Welcome

Agenda Speaker Introductions & Objective

About Ingenico Group

EMV Overview

The United States of EMV / Current State of EMV in America

Lessons Learned / EMV Migration Stories From the Field

EMV Migration / 9 Easy Steps to Accelerate the Process

Beyond EMV / Future-Proof Payment Solutions

Q&A

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Speaker Introduction

Greg BurchVP of Strategic Initiatives

Ingenico Group / North America

Allen FriedmanVP of Payment Solutions

Ingenico Group / North America

EMV Migration Webinar / Lessons Learned – Next Steps 11/19/2015

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Objective

To discuss where we are with the U.S. EMV migration, receive insight from merchants who have begun their EMV migration and identify next steps that go beyond EMV.

EMV Migration Webinar / Lessons Learned – Next Steps 11/19/2015

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PollOut of the estimated 8 million POS terminals in use, about how many are EMV-ready?

A) 50,000B) 150,000C) 300,000D) 500,000E) No one knows

EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015

About Ingenico Group

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Global footprint / multi-local solutions

$1.8Bin 2015

88sites across

the world

35years of payment expertise

global reach

170countries

78nationalities

5.5Kemployees


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• Security-focused / EMV, NFC, P2PE

• Seamless experience / in-store, out of store and onboard

• Innovative solutions / across industries and use cases

• Trusted partner / unmatched service and support

Ingenico Group U.S. / at a glance


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Trusted partner / from small merchants to global brands

Network of

1,000+financial

institutions

Partner with

70%of the Top 30 leading retail

brands

250K+ merchants

connected to our platforms

Accepting

300+payment methods


EMV Overview

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EMV defined / what does EMV stand for?

E

M

V

EMV is a technical payments standard. It stands for Euro Pay, MasterCard and Visa.


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EMV defined / how it works

EMV involves using smart cards that integrate a microprocessor chip, rather than magstripe to process payment.

Cards must be physically inserted or “dipped” into smart terminal. Or, contactless cards or payment enabled mobile devices can be used, which can be read over a short distance.

An EMV card is also called “chip card” or “smart card”.


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EMV defined / how it works


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EMV overview / EMV is a liability shift

EMV Liability Deadline




The United States of EMVCurrent State of EMV in America

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EMV migration / where are we now?

By the numbers – industry preparedness

48%of U.S. cardholders

have “dipped” or inserted their cards into an EMV-ready terminal

EMV cards in consumers’ pockets Number of EMV terminal “users”


60%of U.S. cardholders have received the EMV chip cards

Based on Ingenico Group Survey – Released October 2015

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By the numbers – cardholder perceptions

of U.S. cardholders prefer EMV cards to

magstripe (54%).

EMV vs. magstripe

46%


of EMV-preferring cardholders felt EMV

cards were more secure.

75%

More secure & durable

of magstripe preferring cardholders attributed

their choice to the perception that a

magstripe transaction seems faster.

30%

Magstripe seems faster


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By the numbers – industry education

33%of cardholders who tried using an EMV

chip card at the POS did not know how to

use it. Merchants had to instruct them.

66%of cardholders who

received educational material with their EMV cards felt it was clear.


Merchant intervention Educational material


Lessons LearnedEMV Migration Stories From the Field

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Mattress Retailer Doesn’t Snooze on EMV

Mattress Retailer Partners with Ingenico Group to Increase

Security and Expand Payment Acceptance Options


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• Cost savings – with the ability to accept debit cards, they reduced processing fees

• EMV, NFC/contactless ready

• Higher payment security –increased their already secured system with P2PE

• Flexibility – the IngEstateterminal management allowed Sleepy’s to manage all smart terminals remotely

• Compliance – reduced PCI scope by upgrading payments technology

• Employed Ingenico Group’s iSC Touch 480 smart terminals

• Implemented Ingenico Group’s IngEstate terminal management system

• They needed the ability to accept debit, EMV and NFC/contactless payments

• They needed to enhance their security, beyond EMV

• They wanted to reduce transaction fees

• They required flexibility in managing their smart terminals

• They desired large touch screens, that allow for signature capture

• They needed to integrate with a 3rd party P2PE solution

Challenge / Opportunity

Solution Results

Major retailer / EMV migration story


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Music Retailer Plays a New Song in the Tune of E-M-V

Sam Ash Music Stores Enhances Security and Customer Experience;

Turns to Ingenico Group for EMV and NFC Acceptance


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• Upgraded payment infrastructure across all 45 stores

• Gained the ability to accept EMV, gift cards, private label credit cards and NFC/contactless

• Enhanced in-store customer experience

• Improved payment security by integrating tokenization and P2PE solution

• Employed Ingenico Group’s iSC Touch 250 smart terminals

• Implemented point-to-point encryption (P2PE) - Ingenico Group’s On-Guard solution

• Worked with 3rd party payment gateway, to include tokenization

• A need to improve cardholder security

• A need to enable EMV

• Wanted the ability to accept mobile payments

• Required a solutions provider that partnered with a payment gateway

• Desired a touch screen for signature capture and to display digital receipts

Challenge / Opportunity

Solution Results

Music retailer / EMV migration story


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Music retailer / EMV migration timeline

July 14

July – Dec. 14

Jan. 15

Jan. 15 – May 15

May 15

June – Sept 15

Q1 2016


EMV Migration9 Easy Steps to Accelerate Your EMV Migration

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EMV migration / steps to accelerate the process

Build Chip Implementation

Team

Assess Current Merchant

Environment & Conduct Needs

Analysis

Meet with Acquirer & Payment Processors


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Design and Implement

Test & CertifyBuild Your Project Roadmap


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Perform Pilot Go LiveTrain Staff


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Consider a semi-integrated payments architecture:


Maintains a connection between the terminal and electronic cash register (ECR) Provides an independent connection for transactions to go “around” the ECR,

directly to the host Sensitive payment data does not enter the POS

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Benefits of a semi-integrated payments architecture:

Simplify EMV Migration

Leverage “pre-certified”

solutions

Minimize upgrades required to POS

& back office systems

Reduce costs of EMV migration

PCI Scope Reduction

Reduce footprint where sensitive

data passes through

Opportunity for reduced PA-DSS

Lower cost of PCI compliance

Increase chance of audit success

Improvements to Security

Limit attack surface

Avoid breaches commonly occurring

in the POS

Simplify path to add point-to-point

encryption (P2PE) & tokenization

Avoid EMV Certification Bottleneck

Bypass the backlog of merchants

simultaneously looking for

certifications

Skip the long and expensive process


Beyond EMVHow to “Future-Proof” Your Payments

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EMV authenticates the validity of the card

EMV authenticates the validity of the cardholder

EMV DOES NOT secure the data

Beyond EMV / EMV is not enough for complete security


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EMV must be a part of a multi-layered security to ensure complete data protection:

• EMV for card authentication – protect against fraudulent cards

• Point-to-point encryption (P2PE) – no clear card data outside secure POI

• Tokenization – Protect card data at rest

With these security measures in place, if there is a successful attack on the POS, it will not yield data that can be monetized



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Multi-layered security protects against all threats:

Threats ProtectionCard Present Card-Not-Present

EMV Encryption Tokenization EMV Encryption Tokenization

Counterfeit cards Lost & stolen cards 1

Reusing stolen data Stealing data in transit Stealing data at rest

1 When used with PIN CVM



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EMV and mobile payments are complementary technologies

• Many smart terminals that accept EMV contactless cards also accept NFC mobile payments – it’s the same technology

• It’s best to accept both in order to future-proof your POS

• Contactless payments are much faster – taking only 5 to 10 seconds

• Dual interface cards will be the next phase of the U.S. migration

Beyond EMV / EMV & NFC/contactless


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By upgrading to a “one size fits all” smart terminal, merchants can future-proof their technology with scalable, flexible payment solutions:

• Contact chip card• Contactless card acceptance• Mobile payments• Traditional

Beyond EMV / One-size fits all smart terminals


EMV & Ingenico GroupTime to Get Ready

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EMV-ready / Ingenico Group Solutions

Leverage our global EMV expertise to get EMV-ready.

• Ingenico Group is the global leader in worldwide EMV deployments

• Ingenico Group streamlines your EMV implementation by helping you identify the appropriate EMV-compliant solutions to meet your business model’s specific needs

• We offer future-proof payment solutions that accept:• EMV chip & PIN• EMV chip & signature• NFC/contactless – Android Pay & Apple Pay


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EMV-ready / Ingenico Group Solutions

Our diverse suite of EMV, NFC/contactless and secure solutions can fit your business model:

iPP 310

iSC Touch 480

iSMP for iPod touch®

iCT 250

On Guard P2PE


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EMV / resources

Learn more:

• Download our EMV ebook: http://info.ingenico.us/emv-ebook-registration

• Download our EMV Survey Executive Report: http://info.ingenico.us/emv_survey_executive_summary

• View our EMV webinars:1. http://info.ingenico.us/emv-myths-recorded-webinar2. http://info.ingenico.us/semi-integrated-recorded-webinar-registration3. https://event.webcasts.com/viewer/event.jsp?ei=1069764

• Visit these EMV websites:• Go Chip Card Information• EMVCo• EMV Migration Forum• EMV USA• Smart Card Alliance

• Links will be emailed post-webinar


Questions?www.ingenico.us

Thank You.