WHAT IS EMV IN THE U.S., AND HOW DOES IT AFFECT MY BANK? APRIL 28, PDF Free Download

WHAT IS EMV IN THE U.S., AND HOW DOES IT AFFECT MY BANK? APRIL 28, 2015

WEBINAR INFORMATION Submit a question at any time Use Q&A window Use the chat window for technical difficulties Webinar is being recorded 2

TODAY S PRESENTERS Derrick Bretz Director of Payment Services CSI Brent Gottshall Payment Services Security Manager CSI 3

POLL 1 When would your bank like to begin issuing EMV cards? Now/ASAP October 2015 Sometime in 2016 I don t know 4

AGENDA EMV / Chip Card Overview State of Debit EMV Discuss Fraud Aspects CSI Plan Kick-off Implementations 5

EMV / CHIP CARDS OVERVIEW 6

EMV / CHIP CARDS Embedded microprocessor Operating System Communication Protocols Secure Element Application w/ AIDs 7

LIABILITY SHIFT 8

MISINFORMATION OVERLOAD News Media Industry Publications Market Competitors Networks Merchants 9

INCREASING NOISE & PRESSURE Need it now!? Already behind!? Eliminates fraud!? Merchant will be liable!? PIN versus Signature!? 10

STATE OF DEBIT EMV 11

CSI SUPPORTED EMV GO-LIVE DATE October 1, 2015 * if project forms completed prior to deadline 12

EMV TERMINALIZATION On average at the time of Liability Shift in Brazil, Canada and Australia, the EMV penetration level for chip-on-chip transactions was 45% Averages 4-5 years for the EMV penetration level to increase to over 90% post the Liability Shift date 13

REGULATION II DURBIN AMENDMENT prohibits an issuer or payment card network from restricting the number of payment card networks on which an electronic debit transaction may be processed to fewer than two unaffiliated networks, regardless of the method of authentication 14

CREDIT EMV IS NOT DEBIT EMV Credit EMV Single Application Application dictates Network Debit EMV Single Application w/ Multiple AIDs Visa or MasterCard AID U.S. Common Debit Terminal dictates Application and Network 15

TERMINALS ARE NOT READY Vantiv Press Release Nov. 4, 2014 announced today that it is the first U.S. acquirer to successfully complete the nation's first debit EMV chip transaction utilizing the Durbin compliant methodology known as US Common AID. The first debit chip transaction using the US Common AID is an important milestone in our journey toward chip adoption in the United States," said Stephanie Ericksen, vice president of Risk Products, Visa Inc. http://investors.vantiv.com/phoenix.zhtml?c=250843&p=irol-newsarticle&id=1985597 16

WAL-MART AND DEBIT EMV Merchant s received terminal specifications for Debit EMV last month [February]. Wal-Mart received the specifications early. will be ready in late September. - Network Payment Executives Council - March 13 - John Drechny - Senior Director of Payment Services - Wal-Mart Stores, Inc. 17

FRAUD IMPLICATIONS 18

MAG-STRIPE NOT GOING AWAY At Risk of Compromise Swipe at Non-EMV Terminals EMV Pre-insert Swipe 19

TECHNICAL FALLBACK Disabling the EMV Chip Bend/Crack/Hammer EMV on EMV or Chip on Chip Transactions Issuer is Liable 20

CSI & EMV 21

STANDARD EMV IMPLEMENTATION Scheduling Based on Availability 9 12 Month (Estimated) Program Specifications Personalization Validation End to End Testing Fees of $25,000 - $50,000 (Estimated) 22

STANDARD U.S. EMV DEFAULT PROFILES Transaction Authorization Online Only Card Authentication Online Only Issuer Cardholder Verification Method 1. Signature 2. Online PIN 3. No CVM 23

ACCELERATED EMV IMPLEMENTATION Streamlined Process Priority Scheduling 1-2 Weeks Reduced Testing Requirements Lower implementation fees 24

BANK EMV DECISIONS Chip Sizes Card Interfaces Contact vs. Dual Transaction Authorization Online vs. Offline Card Verification Methods Signature vs. Pinned Card Art Date of Deployment 25

COSTS OF EMV 26

EFT SOURCE - SETUP First Card Program Setup - $3,600 Addl. Card Program(s) Setup - $ 800 Card Program = BIN + Chip/Interface + Card Design 123456 + Contact EMV + 001 123456 + Contact EMV + 002 298765 + Contact EMV + 001 27

EFT SOURCE - PLASTICS CSI Generic - $1.75 to $2.00 EFT Source Generic - $1.83 to $2.17 Custom Plastics Range Visa 4k Gold Range MC 4k Gold 1,000 $ 2.96 1,000 $ 3.21 2,500 $ 2.02 2,500 $ 2.21 5,000 $ 1.57 5,000 $ 1.68 10,000 $ 1.39 10,000 $ 1.48 20,000 $ 1.27 20,000 $ 1.35 *Silver Plating adds $0.07 per Card 28

CSI EMV FEES Implementation First Contact Only Program - $2,000 Addl. Contact Programs - $1,000 Card Production EMV Credential Provisioning - $0.50 Transactional EMV Cryptogram Validation - $0.015 29

RECOMMENDATIONS 30

CSI RECOMMENDATIONS Get EMV Ready Ready EMV Programs and Plastics Establish Rollout & Support Strategy Internal Bank Staff Naturally Expiring Card Reorder Cycle 31

HOW TO GET STARTED 32

KEY POINTS Eligibility Requirements Paperwork Required High Level Overview of the Project How to Get Started 33

ELIGIBILITY REQUIREMENTS Must be a current CSI Payment Services Customer. BIN/Extended BIN range must already exist and be in CSI s system for Mag-Stripe Cards Must be using EFTSource for card issuance Card program must already be set up with EFTSource for Mag-Stripe Cards BIN or Extended BIN must be one of the following types of programs: MasterCard Debit (Business, Consumer, HSA) VISA Home Equity Line of Credit VISA Debit (Business, Consumer, HSA) NOTE: Non-Branded ATM cards are NOT eligible for early EMV adoption at this time. Must be contact only chip cards. Dual Interface chip cards are not supported for early adopters Must have EMV approved card art on file with EFT Source or work with EFT Source to get new card art approved if current art is not acceptable for EMV If wanting to utilize Card@Once for EMV: Must have EMV capable printers. Implementations will be conducted on a first come first serve basis based on successful completion of all required paperwork. 34

PAPERWORK REQUIREMENTS Project Packet The project packet is a joint collaboration between CSI and EFT Source Blank templates will be available on Web Secure Project packets should be completed as follows: One project packet is required per BIN you wish to convert to EMV If your Financial Institution plans to use extended BIN ranges for EMV cards, you must fill out one project packet per extended BIN range Signed Supplemental Example Supplemental documents, with pricing, for EMV will be available on Web Secure Contact your Relationship Manager to receive a executable copy of the document. 35

PROJECT PACKET OVERVIEW PART 1 Contact information Financial Institution Name This should match the FI name on file with VISA/MasterCard CSI Bank Number Mailing Address Contacts Two contacts are needed Bank Officer This contact may be required to sign VISA/MasterCard Documents which require an officer level signature EMV Project Contact This is the main contact at your Financial Institution that will be involved with CSI/EFT Source for EMV. This can be the same person as the Bank Officer BIN/Extended BIN Range If using an extended BIN range you must fill out project packets for every range you plan on using as these are separate programs at EFT Source. VISA/MasterCard Program Type 36

PROJECT PACKET OVERVIEW PART 2 Card Stock Type Custom Custom EMV cards have up to a 16 week turn around to produce Generics Generics will be available for EMV. CSI will have one option for Generics (Gray) and EFT Source will have 3 options available at launch CSI Generics - CSI Gray EFT Source Generic - Jade EFT Source Generic - Ripple EFT Source Generic - Regal CSI Gray - MasterCard CSI Gray - Visa 37

PROJECT PACKET OVERVIEW PART 3 Embossed/Printed Cards Embossed Cards have raised lettering/numbering for card number, cardholder name, and expiration date Printed cards have the same information printed onto the card Card@Once Customers If you utilize EFT Source Card@Once printers there is one additional question for you: Do you utilize MAGTEK devices to change customer PINs? Tipping/Printing Color Tipping color refers to the color of the embossed items on your cards. Printing color refers to the color of the printed items on your cards. Roll-out type Natural Recommended Mag-Stripe cards will be replaced with EMV cards naturally as cards expire or exit the environment Mass Re-issue All cards are reissued as EMV for all customers Unknown If you are not sure which option you will choose 38

PROJECT OVERVIEW 1. Projects will be worked on a first come, first serve basis 2. Successful submission of project packet and signed supplemental 3. CSI will submit paperwork to EFT Source 4. EFT Source will assign a project manager to handle EMV implementation for the required BIN/BIN ranges 5. Inserts CSI and EFT Source are working together to provide a generic EMV insert option to CSI Financial Institutions 6. Test Cards will be created and sent to CSI 7. CSI will enable the BIN/Extended BIN for EMV and allow your FI to choose EMV cards as an option for printing. 8. Optional - Pilot CSI recommends a test program to test EMV cards in your environment 9. CSI will assist you if you wish to conduct a mass reissue 39

HOW TO GET STARTED Go out to WebSecure If you are a MoneyLinks (Meridian) Customer Go to mcmsecure.csiweb.com Go to Pages at the top menu > Products > EMV/Chip Cards If you are a NuPoint Customer Go to secure.csiweb.com Go to Pages at the top menu > Product Pages > EMV/Chip Cards The page will have the CSI/EFT Source Project Packet, a sample supplemental, and other relevant information may be added in the future Upon completion of a signed supplemental and a completed project packet, please email both documents to EMV@CSIWEB.COM The documentation will be reviewed by payment services staff If there are errors or clarifications needed, we will contact the Daily contact listed in the project packet If the documentation is correct, we will confirm acceptance of the documents 40

THE QUESTION IS WHEN 41

POLL 2 When would your bank like to begin issuing EMV cards? Now/ASAP October 2015 Sometime in 2016 I don t know 42

POLL 1 RESULTS When would your bank like to begin issuing EMV cards? Now/ASAP October 2015 Sometime in 2016 I don t know 43

POLL 2 RESULTS When would your bank like to begin issuing EMV cards? Now/ASAP October 2015 Sometime in 2016 I don t know 44

1. CSI will support the issuance of EMV, October 1 st, 2015 2. Credit EMV is not Debit EMV 3. Terminals are not ready for Debit EMV and may not be ready by the liability shift 4. Fraud will continue to plague Issuers even with EMV, it will just cost more 5. Implementations start now, CSI will help get you ready, the bank decides when 45

Q&A Submit questions via the Q&A panel for our presenters! 46

SURVEY Let us know what you think! 47