July 2006 SC 5000 Smart Programmable PINpad

The Changing Payment Environment  Compliance with global EMV standards will be mandated by card associations  Banks, acquirers and merchants must manage the cost & timing of upgrading their payment infrastructure  Smart cards will increase security for payment transactions  Value-added applications create an opportunity to improve customer service and generate new sources of revenue The emergence of a global smart card standard presents challenges & opportunities

The Competitive Advantage of Next-Generation Payment Solutions  Fast, flexible, full-featured solutions improve customer service Choice – consumers have a variety of electronic payment choices Speed – process even the most complex transactions in seconds Simplicity – friendly, intuitive interface Design – compact and ergonomic

Smart Move: SC 5000  Unsurpassed performance in a programmable PINpad  EMV compatibility  Outstanding flexibility  Ergonomically designed  Comprehensive security protections  Integrates with older-generation POS terminals and electronic cash registers The smart solution for the smart card generation

SC 5000: Unsurpassed Performance  32-bit processing power delivers unbeatable performance on smart card transactions  Quickly handles complex cryptography  Development environment designed for maximum performance  Performance assured for older-generation terminals and ECRs – without replacing existing installed base

The Smart EMV Solution  The SC 5000 family provides all the elements required for EMV compatibility without compromising the ability to customize the solution EMV Level 1 Type Approval for hardware EMV Level 2 Type Approval for optional application resident on device Flexible development environment supports creation of EMV-compliant solutions or custom smart card applications

Smart and Versatile Capabilities  SC 5000 – a card reader for every occasion Primary smart card reader Choice of 0, 2, or 4 SAMs Optional, bi-directional, dual or triple track magnetic stripe reader Optional backlit display  Robust Software Developers Toolkit (SDTK) for streamlined applications development

Designed for merchants and their customers  Bold, ergonomic design is sleek and stylish  Small footprint reduces countertop clutter  Ergonomic design is easy for clerks and consumers to handle for PIN or other data entry  Large keys minimize errors  Highly readable LED-display with backlit option for low-light environments  Multiple language support, including support or graphics-based character sets

SC 5000 Product Details

 User Interface telephone-style numeric keypad 3 programmable function keys 3 screen addressable keys  122 x 32 pixel Graphics Display Supports simultaneous display of graphics & text Supports text display of 4 lines by 15 characters  Support for Multiple Languages Both graphics-based & “roman” character fonts Application controls presentation of multiple languages  1, 2, or 4 MB RAM Supports multiple applications

SC 5000 Product Details  Programmable C Based Programming Environment –can leverage Verix application development MULTI Software Development Environment from Green Hills Software Inc. (GHS)  Magnetic stripe reader Data can be read simultaneously on all tracks and in both directions of card swipe  0, 2, 4 Security Access Module (SAM) option  EMV 4.0 Type Approved –Level 1 (Hardware), Level 2 (Application)

SC 5000 Modular Repair Benefits  Cost Effective Module swap-outs are simple and do not require technical experts Labor rates are lower and repair time is quicker Training is not complicated, further lowering costs associated with high staff turnover  Extensive Training Tools to Simplify Training for Secure Products CD, pictures & video contain all the information needed to deliver 'Modular Repairs" training Technicians can train themselves at their own pace

SC 5000 Configuration Options, Accessories & Connectivity Options

Product Configuration Options  Mag-stripe reader options No MSR Track 1/2 Track 1/2/3  Secure Access Modules (SAM) 0, 2, 4  Backlight Display option

Product Accessories  Privacy Shield  Snap-In Mounting Adapter

SC 5000 Connectivity  Terminal Direct Connect  Terminal with external power  ECR Connectivity

Cabling Configurations: Terminal Direct Connect

Cabling Configurations: Terminal with External Power

Cabling Configurations: ECR Connectivity

SC 5000 Application Environment

SC 5000 Application Development Environment  Software Development Toolkit (SDTK) Compiler/Debugger/Loader (from GHS) Smart Card Library Documentation & APIs Development Unit  Development units could be purchased separately M SD

SC 5000 Applications  VeriFone architecture and approach is intended to Provide a simple but highly effective internal and external interface Maximize reusability of common components Provide a mechanism for non-VeriFone applications to leverage from a common architecture and interface methodology Minimize development costs and time to market  It is the approach selected by VeriFone, it is not the only way to use SC 5000

VeriFone-Developed SC 5000 Applications  SC 5000 Application Menu Manager  SC 5000 PINPad 1000/2000 Emulation Application  SC 5000 Generic EMV Application

 SC 5000 Common / Reusable Application Modules Provide specific categories of functionality Handle command specific errors General Command Library (GCL) EMV Command Library (ECL) ICC Command Library (ICL) Database Command Library (DCL) Application Command Parser Library (ACPL) User Defined Command Library (DCL) Remote Device SC 5000 AMM PPxxxx App PPEMVG App ???? App Application i/f RS232 i/f SC 5000 AMM PPxxxx App PPEMVG App SC 5000 Applications  SC 5000 Application Menu Mgr Application selection menu Remote application selection command interface  SC 5000 PP1000/2000 Emulation PINPad 1000/2000 remote command interface  SC 5000 Generic EMV Application Remote command interface for EMV functionality EMV 4.0 Level 2 Type Approved

SC 5000 Security Features: VeriShield Security Architecture

SC 5000 Security Features  Third Generation VeriShield Implementation Visa PED Spec Compliant VeriShield File Authentication VeriShield Hardware Security VeriShield Security Scripts

VeriShield Hardware Security  Tamper Detection Security fence to prevent access to sensitive components Multiple tamper/case-open detectors Voltage detector to monitor power supply Keypad with conductive carbon pills between keys In case of attack, firmware, application and keys are erased

3DES Encryption Standard  3DES Status No standard today for 3DES Session Key management VeriFone leading consortium to create specification  SC DES Support Full 3DES support –3DES Master/Session –3DES DUKPT –Other 3DES key management schemes

VeriShield File Authentication  Prevents unauthorized applications from being executed  Ensures security and integrity O/S, application, data  Secures all O/S upgrades for local or remote downloads  Uses a hierarchy of public key certificates to protect all files loaded into SC 5000

Certificate Hierarchy Trusted Root Certificate O/S Root Cert. Sponsor Certificate Signer Certificate O/S Update File Customer Application (Credit/Debit/Loyalty)

Default Certificate Embedded During Manufacturing DEFAULT DIGITAL CERTIFICATE

Application Development is Simple, Uses Default Certificate DEFAULT DIGITAL CERTIFICATE

Default Certificate Does Not Guard Against Rogue Applications From Being Downloaded  Application downloads are still password protected DEFAULT DIGITAL CERTIFICATE

SPONSOR’S SIGNER CERTIFICATE CAN NOT BE EXECUTED Assigning Sponsor Certificate Will Protect Against Execution of Rogue Files

Additional Certificates Allow Downloading Privileges to Third Party ADDITIONAL SIGNER CERTIFICATE SPONSOR’S SIGNER CERTIFICATE

VeriShield Security Scripts  Unique, flexible security language  Supports virtually any key management scheme  Scripts may be written by trained application programmers  Supports DES, 3DES, AES, RSA, SHA-1