ATM “What If” Session Assumption Validation EMF San Diego – May 20, 2014 Updated May 29,

Goals 1.Validate assumptions for U.S. Common AID technical solution, noting the following:  Assumptions within Debit White Paper  Assumption not found in white paper specific to ATM  Findings from current implementations 2

Background Common AID processing for ATMs is identical with Common AID processing for POS for online transactions using online PIN The Debit Technical Working Group’s U.S. Debit EMV Technical Proposal contains assumptions that should be validated by the ATM Working Group/What-Ifs committee The ATM What-Ifs committee has documented assumptions that should be validated by the Debit Working Group All assumptions should be validated against early implementation experiences A working session was held on May 20, 2014 to review and validate assumptions 3

Scope For the purposes of this document: ATM transactions will include cash disbursements (cash withdrawals and cash advances), balance inquiries, deposits, and funds transfers “Sales” transactions are considered POS transactions and are not included in this discussion 4

Validation of Assumptions Reference #Assumption Is this Assumption in the Debit Technical Committee White Paper? Current Situation or Other Comments 1 Business/contractual arrangements currently exist between acquirers and networks. When routing a transaction, each acquirer must choose a valid network per their own routing rules. True 2 Issuers will properly personalize Durbin- regulated cards to include a Common AID where multiple routing arrangements are possible MasterCard/Visa specify routing when their AIDs are used to initiate transactions YesLargely true 3 The common U.S. AID on the card is supported by all of the networks the issuer is affiliated with. YesNot necessarily true; in process. We have already seen an issue on this front, so we cannot assume that all issuers will do this. 5

Validation of Assumptions Reference #Assumption Is this Assumption in the Debit Technical Committee White Paper? Current Situation or Other Comments 4 There will be three common debit applications for the U.S.: A Visa US common application A MasterCard/Maestro U.S. common application A DNA-supported US common application YesApplications announced 5 Assume that all U.S. payment networks will support all three common U.S. AIDs YesIn progress 6 A debit card may contain zero to ‘n’ non- Common AIDs. No current users 7 A debit card may contain one, but not more than one, common U.S. AID. YesTrue at this time 8 All U.S. ATMs will support all common U.S. AIDs for networks in which they participate. Yes 6

Validation of Assumptions Reference #Assumption Is this Assumption in the Debit Technical Committee White Paper? Current Situation or Other Comments 9 In order to preserve current routing choice, the chip-enabled ATM must be configured select the Common AID when one is supported by both the chip card and the ATM. Where a common AID is paired with a non-Common AID, the non-Common AID will be removed from consideration 10 A chip card may contain more than one application. In a true multi-application card, the chip can contain, for example, one application that is tied to a credit account, and a second application that is tied to a debit account. In this situation, it is recommended that the ATM support cardholder application selection. It is then critical that the options displayed for the cardholder are clear so that the cardholder can make an informed decision about which one to choose. MasterCard requires that terminals must support cardholder selection for multi- application cards. The debit MasterCard application must indicate DEBIT MASTERCARD. The Common AID Application Label cannot use verbiage that implies specific routing or the global brand. Acceptable verbiage might include the word DEBIT and the name of the issuer, i.e. DEBIT BARCLAYS. 7

Validation of Assumptions Reference #Assumption Is this Assumption in the Debit Technical Committee White Paper? Current Situation or Other Comments 11 For each network or gateway they are affiliated with, acquirers must keep track of whether that network or gateway can support EMV transactions or not. This is a challenge because networks do not have to do this today. Also, this logic or table will require frequent updates. And, this is a temporary measure during the “transitional” period. YesNot done today 12 Any “default” or “black hole” destinations used for routing purposes must be EMV- enabled before the acquirer can route EMV transactions to those destinations. This assumption is included as an operational caution. An acquirer may not know if the default/black hole destination is EMV-capable or not. 8

Validation of Assumptions Reference #Assumption Is this Assumption in the Debit Technical Committee White Paper? Current Situation or Other Comments 13 Standard EMV processing includes a step called Application Selection. Where standard EMV Application Selection is used (either priority selection or cardholder selection) i.e. there is no specialized logic to select a common US AID, the ATM will need to pass the AID to the acquirer, so the acquirer knows that a common AID was not selected. None of the global payment networks require that the AID be passed in a transaction request. 14 Assuming the ATM selects the common AID during transaction initiation; the acquirer will be able to use existing routing logic and will not need to modify that logic to route by AID. (This does not take into consideration the situation where the selected destination is not yet EMV-capable.) 15 “ATMs” have a primary function of dispensing cash, along with a number of supporting functions (deposit, balance inquiry, funds transfer). Sales and bill payment at the ATM fall under POS and bill payment rules and processes. True today. Some networks may have same rules for ATMs and unattended POS. 9

BIN Routing Table Template From (EMF) US Debit Technical Solution: BINNetworkMCCOnline PINNo CVM limit Signature support EMV Supported AYY$50Y YN$0N BYY$25N CYN$0N AYY$50Y YN$0N BYY$25N CYN$0N XXXXXXBYY$50N DYN$0N Only BIN, Network, and EMV Supported relevant to ATMs. 10

Thank you! 11