EMV Overview

What is EMV?

EMV is a set of international standards that defines interoperability of a more secure transaction type crossing the international payments landscape.

• EMVtransactionsintroducedynamicdataspecifictothecard(onachip)andthetransaction.

• EMVStandardsarebeingadoptedbytheUnitedStatesandappliedtoUnitedStatestransactions.

Important Industry Dates

Visa MasterCard Discover American Express

April 2013Processors must support EMV

Processors must support EMV

International ATM liability shift

Processors must support EMV

Processors must support EMV

April 20153rd party ATM must support EMV

October 2015Liability shift of counterfeit transactions

Liability shift of counterfeit transactions

Liability shift of counterfeit transactions

Liability shift of counterfeit transactions

October 2016Liability shift date for ATM

October 2017

Liability shift for Automated Fuel Dispensers(AFD)

Liability shift for ATM

Liability shift for Automated Fuel Dispensers(AFD)

Liability shift for Automated Fuel Dispensers(AFD)

Liability shift for Automated Fuel Dispensers(AFD)

Vantiv Plans

Q1 2015________________________________________________________

Debit Production Availability for all MC and Visa debit cards

Credit Production Availability for all MC and Visa credit cards

©Copyright 2014 Vantiv, LLC. All rights reserved. VFIEMVSL00103.14

EMV Benefits for FI:• EMVreducescostlyfraud

related to lost, stolen, and counterfeit cards.

• EarlyEMVintegrationallowstheinstitution to differentiate their institution and grow their business faster than competition.

• TheadoptionofEMVwillallowfor international interoperability allowing your customers to transact easily while traveling outsideoftheUS.

Proposed Pricing**

• Startup:$5000perBIN

• Plastics:$2.00-$5.00percard(basedonFI’stotal#ofcards)

• Authorizations:$0.01-$0.02perauthorization(basedonFI’stotal#ofauths)

**Other fees could apply for changes, programming of chips, etc. Many of these additionalfeeswillbeone-timeorafewtimes a year, not monthly.

Vantiv Leadership• OnlyUS-headquartered acquirerservingonEMVco BoardofAdvisors

• SmartCardAllianceEMF (EMVMigrationForum)electedSteeringCommitteeMember

• FirstUSacquirertocertify EMV with Visa and MasterCard intheUS

• FirstUSserviceproviderto certify ATM upgrades with MasterCardandNCR

• FirstUSserviceproviderto certify American Express for ATMacquiring

Frequently Asked Questions

Q When do I have to issue EMV?

A AlthoughEMVisnotamandate,thepaymentsindustryintheUnitedStatesiscurrentlymovingtoacceptEMVasthenewstandardforpayments. While Issuers do not have to issue EMV cards, due to the counterfeit liability shift, whoever has the least secure technology will be liable if the counterfeit fraud occurs.

Q IfI’mconvertingtoVantiv,canIreissuemycardsatconversion as EMV cards?

A Yes, once the Vantiv EMV product is released in Q1 2015, conversion to EMV is recommended.

Q Can Vantiv help me determine which cards should be reissued first (highrisk,internationaltransactions,etc)?

A Yes,VantivwillprovideconsultativeadviceforourFI’sbasedonallofthefactors they should consider when deciding which cards to reissue as EMV.

Q Will Vantiv assist me with the communication to my clients about EMV cards?

A Yes,Vantiv’sPortfolioOptimizationteamandyourRelationshipManagerwill assist you with executing communication pieces to your cardholders.

Q Will the cardholder experience be different when paying with an EMV card?

A Yes,thecardholderexperiencewillbedifferentatthePointofSale.Acardmust be inserted into a terminal and remain there during the transaction. Often,aPINwillneedtobeenteredaswell.

Q WhatelseshouldIconsiderasI’mpreparingmyEMVstrategy?

A There is much to consider, EMV adds a significant amount of complexity to the card issuing strategy. The first step is to begin educating your card production,operations,IT,marketingandchargebackteamsonwhatEMVisin order to begin planning an EMV conversion.

Secondly,asyou’remakingthisbigdecision,it’sagreattimetoevaluateother aspects of your card program such as the items listed below. Your RelationshipManagercandiscussanyoftheseitemsinfurtherdetail.

• CardActivation• Embossingoptions• Inserts• Fraudmitigationproducts• ChargebackProcessing• Cardissuingbrand• PINNetworkparticipation

Q How does the overall experience change for the customer at the ATM?

A The ATM will hold the card for the duration of the transaction.

©Copyright 2014 Vantiv, LLC. All rights reserved. VFIEMVSL00103.14