5/19/2015. EMV Update: May, Housekeeping items. Keith Riddle

Transcription

1 EMV Update: May, /MyCorp1 Housekeeping items Turn on your speakers to hear the audio portion of this presentation Print off today s power point by clicking on File/Print/Document PDF is in your Corporate One e mail confirmation You are muted during this presentation. To ask questions, please go to the lower right of your chat feature and type in your question to Patty Matthews. Patty will be providing us the questions throughout this session. We will try to get to all your questions. 2 Keith Riddle Keith Riddle is Corporate One s SVP, Chief Product Management Officer. Keith has more than 30 years of financial services experience in direct sales, product and partnership development, and marketing and strategic planning. He also has experience in payment processing technologies, cloud computing and managed solutions offerings, online banking platforms and personal financial management software, EFT/Debit/Credit/Prepaid processing platforms, and check and ACH processing. 3 1

2 Dr. Art Harper Dr. Art Harper has been the Director of Card Payments at PSCU for three years. He has lead teams that manage the solutions offered to PSCU s Member Owners. Prior to joining PSCU, Art was the Vice President of Electronic Services at South Carolina Federal Credit Union for 13 years. Art has been leading the EMV initiative at PSCU. He has reached over 1,700 people thru internal and external webinars, EMV Roadshows, and one onone meetings discussing EMV. Art has commented in articles from CU Times, CU Tech Talk, and Payment Journal regarding EMV. Art has been regarded a leader in EMV migration movement not only for PSCU but for the US. His thought leadership on conducting EMV sessions, doing interviews, meeting with individual clients / credit unions has been instrumental in getting our clients converted to EMV. 4 Agenda Corporate One Cards Partner for Credit Unions Digital Payment Disruption Introduction of Clique Card Services PSCU Partnership Overview PSCU Solutions Roadmap EMV Update EMV Incentives from Corporate One Corporate One Contacts 5 Corporate One: your cards partner Comprehensive Payments Suite Card Solutions for Credit Unions 60+ Debit Card Clients Nearly 10 Credit Card Clients Commitment to EMV Support Educational session EMV 101 Incentives to assist with the transition to EMV Integrated Support and Consultation Dedicated Corporate One and PSCU Personnel Positioning Credit Unions for Digital Payments 6 2

3 Digital Payments Disruption and Opportunity 7 Mobile Payment Demographics Made a Mobile Payment: 34% millennials 31% % baby boomers 7% 60+ Payment Method: 54% Debit Card 42% Credit Card 40% Checking/Savings Potential Impact Credit Card Portfolio Represents 4 7% of CU s Assets Accounts for 30% of CU s Net Income Potential Impact Debit Card Portfolio Debit Card Interchange = 24% of CU s Net Interest Income (NII) Source: FRB Obstacles for Mobile Payments Source: The Financial Brand 3

4 Consumer Payment Preferences Source: Accenture and The Financial Brand Millennials and High Income Consumers Source: Accenture and The Financial Brand Millennials and Mobile Payment Usage Source: Accenture and The Financial Brand 4

5 PayPal/venmo Social Payment Network Source: BI Intelligence and The Financial Brand Mobile Payment and Digital Wallet Solutions Mobile Payment and Wallet Disruptors 5

6 Potential Banking and Payment Disruptors Frictionless mcommerce User Experience Source: The World of Beacon Xoriant Blog CLIQUE Focused on unique card services needs for small to mid sized credit unions Dedicated deployment resources and support services Consultative services for developing a holistic digital payments strategy Primary goal is to assist the credit union in establishing a top of wallet position with their members 18 6

7 CLIQUE 19 PSCU Partnership Nations largest CUSO Serving Credit Unions since 1977 Cooperative owned by 810 member credit unions Over 16 million cardholder accounts 1.8 Billion transactions in 2014 Credit Union owned Patronage dividend of $30.5 million paid to members in 2014 Board and advisory groups encourage participation by member credit unions Fully redundant, US based organization Fully redundant, US based PSCU service centers Fully redundant, US based PSCU data centers Multiple lines of business supported Credit, Debit, ATM, Prepaid, Bill Pay, Mobile 21 7

8 PSCU vs Industry Metric Industry PSCU Averages PSCU High Performers Checking penetration 50% 55% 70% Debit card penetration 80% 83% 90% Debit active rates 60% 70% 75%+ Debit POS usage (trans/active/month) ATM Usage (trans/active/month) Member Experience Solutions Plastics ATMs Standard and Custom Card Carriers Call Center Support PIN Customization Debit Card Alerts Back Office Solutions Real Time Debit Card Transactions Fraud Detection and Prevention Disputes System Access 8

9 Fraud Detection and Prevention We write rules We confirm fraud We manage recovery 24X7X365 2 domestic call centers End to end management Neural network (200 decision elements) Live agent calling Affidavits Proprietary database Automated notifications Chargebacks PSCU s Fraud Protection Over $100M in Fraud Savings in Past 12 Months Basis Points Currently at 6.25 (debit & credit combined) Industry average is between False Positive 2006 = 17 to = 15 to = 14 to = 13 to = 11 to = 10 to = 7 to = 5 to = 4 to 1 (Industry average 20/1) 2015 Marketing Calendar Jan Feb March April May June July Aug Sept Oct Nov Dec Credit Account Activation New Account Acquisition Visa Retail Branch Promotion Convenience Check Campaigns Debit PSCU Wilmington Spring Low Usage Campaign PSCU Wilmington Fall Low Usage Campaign Visa Retail Branch Promotion Checking Account Acquisition CURewards CURewards Mall Mothers Day CURewards Mall Back to School CURewards Magic Minute CURewards Mall Black Friday Online Bill Pay Sweepstakes using ETES Incentive Campaign using ETES Free and Pay For Performance Campaigns available multiple times a year 9

10 Roadmap: Live now / future 28 PSCU Debit Roadmap 2015 MasterCard Enhanced Debit Tokenization PIN NOW Enhancements Debit Card Alerts Controls Q1 Q2 Q3 Q4 Support US Territories in CMA (Foreign Addressing) Throughout 2015 Online Disputes (Debit) SOT Enhancements (VbV/MCSC) 29 PSCU Credit Roadmap 2015 ebal Con Digital Asset Manager Statement Reprints Conv. Check with Statement Q1 Q2 Q3 Q4 Scores on Statements Dynamic Card Carrier 10

11 PSCU and The Digital Wallet Landscape 31 PSCU is Live with Tokenization 40% of CUs Using Apple Pay Process with PSCU PSCU provides: Issuer onboarding Train the trainer Marketing promotions Educational material Call center support Fraud protection Reporting and analytics MemberConnect Mock Up 33 11

12 EMV 34 Liability Shift Dates Liability Shift Announcement Visa & MC waive PCI Data Security Audit Fee for merchants EMV must be supported by Acquirers & Sub Processors Liability Shift: Cards aligned on date Debit/Credit Shift counterfeit fraud liability to ATM owner for all EMV enabled cards used at U.S. ATMs Automated Fuel Dispensers liability shift for EMV transactions Processors support Amex EMV transactions Fraud Liability Shift (FLS) policy (on issued cards) Merchants eligible for relief from PCI Data Security Standard (DSS) Processors & merchants must be EMV certified & support network data in contact & contactless EMV chip card transactions October 2015, there is a card issuance liability shift 35 March EMV Migration Forum Updates Issuer status: Citibank reported that 60% of their portfolio have chip cards in hand and expect most of their customers to have chip cards by October Chase reported their ATMs are 98% chip enabled and they would reach 100% by year end Merchant status: Ingenico projected that 70% of Tier 1 merchants would be chip enabled by year end VeriFone estimates that 60% of its Tier 1 and 2 merchants will be chipenabled by October MasterCard estimates active U.S. chip enabled merchants at 190,000 locations 12

13 PSCU leading the way PSCU is leading the way with EMV migrations First to provide EMV educational sessions across US First to provide EMV Prepaid On track to be first to offer EMV Debit on NE Platform with First Data First to offer expedited processing with Visa and Master Card 100+ Credit clients live on EMV Issued over 1 million cards into the market 302 clients in certification queues 294 to be completed by year end 2015 EMV Debit readiness 140 clients in certification queues Debit EMV Readiness JANUARY PSCU able to process Debit EMV transactions and create chip plastics MAY Debit Pilot Credit Unions go live (10) JUNE PIN POS networks scheduled to support EMV OCTOBER Card liability shift occurs 2015 Q1 Q2 Q3 Q4 Credit Union project pilots underway ATM EMV support available ATM liability shift MC Oct 2016, Visa Oct 2017 All PSCU Debit Member Owners Certified for EMV EMV Debit Profiles VISA US Common AID profile for Online Debit only Global AID CVM Priority Online PIN Signature No CVM MasterCard US Maestro/Common AID profile 61 Global AID Profile 35 CVM Priority Online PIN Signature No CVM 39 13

14 Network Readiness Agreement Reached Mandate Dates Target FD " " indcates Will Support Network POS ATM Issuer Implementation change from VISA MC DNA AID? Processor Processor Processor prior report Date Accel Mar '14 Mar '14 No Apr '15 Apr '15 Oct '15 Jul '15 AFFN Apr '14 In Process Yes Jul '15 Jul '15 Jul '15 Jul '15 Allpoint Pending Pending Undecided N/A Apr '15 Aug '15 Jul '15 Co Op Apr '14 Oct '14 Yes N/A Aug '15 Aug '15 Jul '15 CU24/Member Access Apr '14 Oct '14 Yes Jul '15 Interlink/Plus N/A Jul '13 N/A Apr '15 Jeanie Sep '14 Sep '14 Yes Jun '15 Jun '15 Jun '15 Apr '15 Maestro/Cirrus Jul '13 N/A N/A Apr '15 Moneypass Pending Oct '14 No N/A Feb '16 Feb '16 Jul '15 NETS Jun '14 Sep '14 Yes Jul '15 TBD Jul '15 Jul '15 NYCE Apr '14 Jun '14 Undecided Oct '14 Oct '14 Oct '14 Implemented Presto Jun '14 Oct '14 Unknown N/A N/A Jul '16 Jun '16 Pulse Mar '14 May '14 Yes Oct '13 TBD TBD Apr '15 Oct '14 (O) Oct '14 (O) Oct '14 (O) Shazam Apr '14 Jul '14 Yes Apr '15 Apr '15 (M) Apr '15 (M) Apr '15 (M) STAR Feb '14 Apr '14 Yes Oct '15 Oct '17 Oct '15 Implemented Notes: 40 US Payment Landscape EMV Certification Timelines 42 14

15 EMV PROMO Payments Action Plan Engage Corporate One to construct a holistic payments strategy Credit/Debit with EMV Support Mobile Payments Evaluation ACH Solutions (with same day payment functionality) Identify ways to deliver a top of wallet card offering Credit/Debit Rewards Activation/Adoption Campaigns Enhance the user experience (i.e. Card Controls app) Leverage the strategic card solutions available in Clique Collective purchasing power Brand awareness and advertising Consultative solutions specifically for credit unions Consulting with Corporate One Our goal is to help your credit union succeed, and our card solution is EMV ready. We are prepared to assist you with EMV and any other concerns you may have about the transition. Contact Corporate One s Correspondent Services Sales 866/MyCorp1 (866/ ) Keith Riddle SVP, Chief Product Management Officer KRiddle@corporateone.coop Toby Thomas VP, Correspondent Service and Sales TThomas@corporateone.coop

16 Consulting with Corporate One Jamie Brundage AVP, Member Relationship Executive Ann Karrick AVP, Member Relationship Executive Marty Orr AVP, Member Relationship Executive Mercedes Rodriguez AVP, Member Relationship Executive Corporate One learning Basics of EMV EMV EMV Update 2015 Join us for our next update on EMV in September 47 Disclaimer This training webinar is designed to provide general information regarding the subject matter. It should not be construed as operational or legal advice. For implementation at your credit union, you should seek your own professional and/or legal advice. 16

17 EMV Update 866/MyCorp1 17