7 Ways to Make EMV Easier / Webinar

7 Ways to Make

EMV EasierHOSTED BY DIGITAL TRANSACTIONS

SPONSORED BY INGENICO GROUP

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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

7 Ways to Make EMV Easier / Semi-Integrated Approach to EMV – 6/28/2016

INTELLIGENT PAYMENTS

Rick OglesbyPresident, AZ Payments Group

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Why EMV?

Source: AZPG analysis of data from the Nilson Report, issue 1068

Total U.S. fraudUS$7.9 billion

6.3

Counterfeit cards:US$3.9 billion

(49%)

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Migration Timeline

August, 2011:Initial EMV roadmaps

Normal Device Turnover 12-13 m devices @ ~ 2-2.5m per year = 5-7 years 7 years

August, 2018:Complete

normal turnover

March, 2014:Durbin Debit

routing agreement

Hardware turnover

Software turnover

October, 2015:Liability shift

Source: AZPG

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Despite the Delay, the Show Must Go On

• 2014 was a banner year for data breaches

• Followed by 780 breaches in 2015 exposing 178m records1

1. Source: Identity Theft Resource Center

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The Result: Banks are Ahead of Merchants

• At least 400+ million chip cards in circulation1

• 70% of consumers carry at least 1 EMV card2

• 1.4 million merchants accept EMV (~15%) 3

• Increased chargebacks lead to certification backlog

• Visa, MasterCard, Amex recently moved to alleviate the problem– Reduced chargeback liability for merchants

– Simplified certification testing requirements

– Ability to self-certify in some situations

– Providing funding for acquirers and VARs

1: Per Visa, June 2016.2: Per CreditCards.com survey, April 2016, and MasterCard, June of 20163: Per MasteCard, June 2016.

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Key Challenges For Merchants and their Service Providers

• Resource conflicts

• Perceived slower transactions

– Software optimization

– Quick Chip

• Complex certification, re-certification, integrations, and other updates

– Example: Contactless EMV and Quick Chip

• Certification queues at processors

Allen Friedman

VICE PRESIDENT OF PAYMENT SOLUTIONS, CSCIP/P

INGENICO GROUP, NORTH AMERICA

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What Makes EMV

Seem Difficult?

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What makes EMV seem difficult?

Change is Hard

Swipe and put it away changes to insert and leave it

Where’s the Debit/Credit button?

Why do cardholders have to answer so many questions?

What’s all this stuff on the receipt?

Security is Harder

Signature always used to be enough

Transactions take longer

Why all the extra testing?

“In a perfectly secure application no one

would be able to do anything”


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Outsourcing EMV

Processing

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Outsourcing EMV Processing

7 Ways to Make EMV Easier / Outsourcing EMV Processing – 6/28/2016

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Traditional Payments

Architecture

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Traditional

Substantially altering or breaking the chain to the path of the transaction

= NEW or RECERTIFICATION NEEDED

EMV-

Ready

Card

Reader

Mobile

ApplicationProcessor /

AcquirerPayment

Network

Card

IssuerPayment

Gateway

7 Ways to Make EMV Easier / Traditional Payments – 6/28/2016

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An integrated architecture:

The point of sale (POS) controls the terminal

POS builds the payment message and controls the authorization flow

This serves merchants well with innovation in consumer interaction and

payment flow.

Traditional integrated retail environment


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Challenges with the traditional model

• Current EMV certification bottleneck as everyone is

rushing to get their solutions certified

• UPDATE: Visa and MasterCard have announced a

reduction in their required test scripts and delegation of

certification requirements and approval to acquirers.

This could significantly reduce certification times.

• Adding security solutions such as point-to-point

encryption (P2PE) and tokenization have an effect on

many system components

• Criminals have mainly attacked sensitive PCI data on the

POS or within the retailer’s internal systems via malware

Semi-Integrated Payments / Traditional Payments - 7/28/2016

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Semi-Integrated

Architecture

A fast path to EMV

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Hardware Semi-Integrated architecture

A Semi-Integrated 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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Key benefits of a Semi-Integrated architecture

Fast & Simple

Path to EMV

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 PA-DSS removal

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

Semi-Integrated Payments / A Semi-Integrated Approach to EMV - 7/28/2016

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Ingenico Group’s

Telium Semi-Integrated

Solution

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Telium Semi-Integrated (TSI) architecture

Flexible approach enables merchants and partners to deploy TSI solutions using Ingenico Smart Terminals

Processor and gateway agnostic

Cross-platform SDK (iOS, Android, Windows, Linux)

Two product variants to suit unique business needs – TSI Basic & TSI Enterprise

Leverages the certified applications running on Ingenico Group’s Telium2 platform

Compatible with Ingenico Group’s wide range of countertop terminals, PIN pads, and signature capture multi-lane retail devices


Andrew Molloy

ANDREW MOLLOY

DIRECTOR OF PRODUCT MANAGEMENT

INGENICO MOBILE SOLUTIONS

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mPOS EMV SDK

A the mobile fast path to EMV

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US:

Operating 70% of enterprise-level

mPOS solutions

International:

Leveraging Ingenico Group’s

strong network to grow

Ingenico Mobile Solutions / global leader in mPOS

New verticals:

QSRs and

Fundraising

Direct Sales

Organizations

ISOs and

Acquirers

New Entrants

The only player

operating in

14 countries

Strong network of

acquirers

New Entrants

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Growth of EMV adoption / demand for EMV-enabled

mPOS

0

100

200

300

400

500

2013 2014 2015 2016

Card Shipments (millions)

Smart and EMV Card Shipments Mag-stripe Card Shipments

Source: ABI Research

Advancements in payment technologies coupled with the move towards EMV is

expected to fuel market momentum.*

Source: The Strawhecker Group - EMV Readiness Infographic

– September 2015

27%

44% 49%

81%90%

0%

25%

50%

75%

100%

Oct. '15 Dec '15 Jun '16 Dec '16 2017

March Data

*Source: Credence Research – “Mobile Point Of Sales (mPOS) Terminals Market, Growth, Share, Opportunities And Competitive Analysis 2015 – 2022

7 Ways to Make EMV Easier / mPOS EMV SDK – 6/28/2016

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mPOS EMV SDK / What is it?

Complete developer-friendly software

development toolkit (SDK) for mPOS app

development

Pre-certified connections to top processors

removes developers from EMV scope

Single integration across Ingenico Mobile

Solutions’ wide range of mobile card

readers and PINpads

Simplest, fastest and most cost-effective

solution for enabling your mPOS app with

EMV


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mPOS EMV SDK / features

Seamless Integration

Semi-integrated approach helps to

reduce PCI scope and remove the

mobile application from EMV

certification

One SDK for integration with

mPOS card readers and

transaction management through

the EMV gateway

Access to several EMV-certified

processors with one single

integration

Developer-Friendly

Enables you to get to market quickly

with new solutions by reducing the

time and costs of EMV certification

iOS and Android SDK with access

to sample code, detailed

documentation and sample

applications

Access your own personal test

account for the development and

testing of your mobile application

Freedom of Choice

Compatible with the entire range of

mPOS card readers to accept all

payment types including

magstripe, EMV chip & sign, EMV

chip & PIN, and NFC/contactless

EMV-certified connections to the

leading payment processors for

magstripe and EMV transactions


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mPOS EMV SDK / accept payments in hours…not months

• Accept an EMV transaction with a

few lines of code

• Allow the mPOS EMV SDK to

manage the entire transaction

process for you

• Access EMV Gateway data for

inclusion in your application or

backend

Login

Initialize reader

Send

transaction


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mPOS EMV SDK / Semi-integrated architecture

EMV end-to-end certification scope

Transaction

Reporting

Security

Management

Transaction

Management

Boarding &

Account

Management

EMV

NFC

EMV Gateway

Global

Payments

Vantiv

First Data

TSYS

Chase

…

Processors

American

Express

MasterCar

d

Visa

Discover

Brands

Readers

PCI

PTS

3rd

Party

App

mPOS

EMV SDK

Mobile Device


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mPOS EMV SDK / What’s included?

iOS & Android SDK

SDK documentation

Sample code

Sample/Test application

Dedicated SDK support team

Register at:

https://developer.ingenico.us/


https://developer.ingenico.us/

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“Speeding up” EMV

Transactions

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Are EMV transactions slower?

7 Ways to Make EMV Easier / “Speeding Up” EMV Transactions – 6/28/2016

vs

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“Quick” EMV transactions

Card branded supported solutions

• Designed to improve consumer experience at multi-lane retailers

• Reduces the consumer’s wait time for card removal

• Lowers the frequency of cardholders forgetting to retrieve cards

• Supports U.S. Common Debit AID processing

• Support all cardholder verification methods (offline PIN will slightly extend the time

the card remains in the reader)


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Speeding up EMV transactions

Optimization

• Remove unnecessary prompts

• Implement contactless

• Streamline and clean up application code

• Check baud rate in card reader/PIN pad

• Use fastest cost effective communication type

• Analyze local network latency


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EMV Best Practices

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EMV Best Practices

7 Ways to Make EMV Easier / Best Practices – 6/28/2016

Implement contactless /

mobile wallet solutions

Avoid meaningless

terminal prompts

PIN Acceptance / PIN

Bypass / No CVM

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Recap / 7 Ways to Make EMV Easier

7 Ways to Make EMV Easier / Best Practices – 6/28/2016

1. Consider outsourcing EMV processing

2. Try a semi-integrated payment solutions for a faster path to EMV

3. Check out Ingenico Group’s mPOS EMV SDK

4. Implement a card branded quick chip solution

5. Obtain the ability to accept mobile wallets, such as Android/Apple Pay

6. Avoid meaningless terminal prompts

7. Be clear on PIN acceptance, PIN Bypass and CVM rules

Questions?www.ingenico.us

Thank You

Technology

7 Ways to Make EMV Easier / Webinar