EMV’s Impact on U.S. Retailers – It’s Coming! Presented by: Chris Francis VP, Market Development February 21, 2014

2Proprietary and Confidential What is EMV? Timelines and Regulations What You Can Do Now Agenda

3Proprietary and Confidential What is EMV? EMV stands for EuroPay, MasterCard and Visa, the entities that originally pushed for this standard. Also known as “Chip and Pin” and “Smart Cards” Dynamic two-factor authentication. Card has EMV chip embedded in it. –Cardholder swipes card and either enters PIN or signs receipt (determined by Issuer) –Smart Card capable terminal needed to recognize chip inside of card Different from existing “Contactless” cards, which have a chip, but no authentication (i.e. non-EMV) Over 1 billion cards have been issued worldwide (2.5MM in the US).

4Proprietary and Confidential EMV – What is it? Until now, the US has been in last place for EMV adoption

5Proprietary and Confidential EMV Adoption in the UK Originally deployed in the UK in 2004 – “Chip and PIN” flavor –Beginning Jan 2005 merchants bore cost of face-to-face fraud if they were not EMV compliant Source: “Financial Fraud Action UK, Fraud the Facts 2012

6Proprietary and Confidential EMV Is Coming to the US EMV support has and will occur over several phases through 2017 With U.S. law in limbo following the overturning of Durbin Amendment Portion of 2010 Dodd- Frank Act, and subsequent appeal of said ruling, it’s unclear if the Federal Reserve will rewrite U.S. debit rules in time to support the current EMV timelines. Card issuers are unlikely to fully update their card bases with EMV capable cards until matter settled, which means the card brands may* push out EMV liability shift dates. In January 2014 MasterCard announced renewed dedication to existing dates October 2015 is a key date for merchants - Counterfeit Card and Lost or Stolen liability shift

7Proprietary and Confidential EMV is Coming to the US Be sure to consult with your acquirer now if there are any POS equipment purchases/equipment refreshes soon –While EMV is still being implemented at the application level, EMV-ready hardware is available today EMV will NOT supplant the need for PCI-DSS certification –Though the EMV chip will provide two-factor authentication, the “card number” itself is generally not encrypted as a result of EMV implementation –Work with vendors to ensure that any End-to-End Encryption and/or Tokenization solutions will be EMV compatible Card Present fraud will migrate away from EMV-compliant locations – you don’t want to be the “last on the block” to implement Major Issuers (American Express, Bank of America, Chase, Citibank, US Bank) have all announced Chip and Signature programs –Chip and PIN cards are primarily being offered by smaller banks and credit unions, or to frequent International travelers

8Proprietary and Confidential WorldPay US, Inc. is sponsored by RBS Citizens, NA. Copyright 2013 WorldPay US, Inc. All rights reserved. WorldPay is a registered trademark of WorldPay US, Inc. All other trademarks are the property of their respective owners. Thank you for your time. Thank you for your time! Questions?