1. EMV

2. What the – MORE Anagrams and Terms?
Chip + PIN
EMV
Chip Card
Smart
Card
NFC

3. Typically includes a microprocessor with read/write capability
In the Beginning…..
The integrated circuit chip (“smart”) card was introduced as a more secure alternative to the mag stripe
Typically includes a microprocessor with read/write capability
Stores encryption data that is used during the transaction to authenticate the card and prevent cloning
Enables Dynamic Authentication by assigning a dynamic value for each authorization

4. New POS Equipment & Functionality
Contact
Contactless
Chip-embedded cards, key fobs or mobile phones are held in close proximity to the terminal (“Tap-and-Go”)
Chip-embedded card is inserted into the smart card reader
Contact points on the chip make contact and communicate with the terminal
RF field from the terminal powers and communicates securely with the chip (NFC)

5. EMV – The New Standard Main Functions:
Established in 1994 by Europay, MasterCard and Visa
Primary purpose:
Define a global standard for credit and debit card acceptance via chip card technology
Main Functions:
Card authentication to protect against counterfeit cards
Cardholder verification to protect against lost/stolen cards
Terminal authentication to protect against “Trojan Horse” hacks
Transaction authorization using Issuer-defined rules

6. For the Merchant For the Cardholder
EMV Benefits
For the Merchant
More secure transactions
Fewer chargebacks
Help foster adoption of other payment technologies,
such as NFC and contactless
For the Cardholder
Fraud reduction
Foreign travelers can use chip cards in the U.S., and vice versa

7. EMV Adoption Worldwide Adoption Financial impact in the U.S.
1.5 million payment cards (40 percent)
20 million POS terminals (70 percent)
Financial impact in the U.S.
15 million POS devices = $6.75 billion
360,000 ATMs = $500 million
1.13 billion credit & debit cards = $1.4 billion
Cost of mag-stripe card: 15 cents
Cost of EMV chip card: 2-4 dollars

8. Fraud Migrates to the U.S.
10/8/2017
41.1% of cards 76.7% of terminals
84.4% of cards 94.4% of terminals
20.6% of cards 75.9% of terminals
28.2% of cards 51.4% of terminals
14.5% of cards 68.1% of terminals

9. Fraud Reduction Stats in the U.K.
Fraud by credit and debit cards fell by more than 25% from 2008 to 2010
Counterfeit card fraud – skimming and cloning – fell by half
Fraud via lost or stolen cards at lowest levels in 10 years
Source: The UK Card Association

10. Key EMV U.S. Adoption Dates
October TECH Innovation Program
PCI validation relief for Level 1 & 2 merchants that adopt dual-interfaced solutions in any year that at least 75% of merchant transactions originate from a chip-enabled terminal
NOTE: The equipment cannot simply be “EMV ready”; the merchant must be able to process EMV and NFC transactions
April Acquirer Chip Processing Mandate
Acquirers and processors must demonstrate the ability to process EMV transactions and NFC contactless payments
October Liability Shift to Merchant
Merchants of any size will be liable for domestic and cross-border counterfeit fraud committed at the point of sale if they are not using a compliant EMV and NFC processing solution
Who is liable?
Chip card read by mag stripe – the merchant
Mag stripe card on an EMV/NFC terminal – the Issuer

11. What is Elavon doing about EMV?
Infrastructure
Updates
E4 and ISO 5853 messages are being updated to support the requirements
Elavon NA development utilities like viaConex are being updated to support the E4 specifications
New Equipment Solutions
New terminal offerings which are EMV- and NFC-capable
Roadmaps for Elavon gateway solutions are still being defined
EMV Availability
Retail and restaurant
Credit, PIN debit, EBT, EGC
In development: ECS, DCC and Lodging
EMV beta targeted for May/June (EMV terminals deployed today are EMV-capable and can be updated remotely when the service is available)
Legacy terminals will not be able to support EMV

12. Ingenico Telium iCT220 iCT250 iWL250 Optional Peripheral Ingenico
PINpad
iPP320
Works with iCT220 or iCT250
MSR
EMV
iCT220
Countertop
Dual Comm
Internal PIN pad
EMV
iCT250
Countertop
Dual Comm
Internal PIN pad
EMV and NFC
iWL250
Portable (GPRS)
Internal PIN pad
EMV
NFC

13. Optional Peripherals/Accessories
VeriFone Evolution
Vx520 Countertop
Dual Comm
Internal PIN pad
MSR
EMV
NFC
Optional Peripherals/Accessories
VeriFone
PINpad
Vx820
Customer-facing
MSR
EMV
NFC

14. VeriShield Retain
All Elavon-deployed VeriFone Vx520 terminals and Vx820 PINpads will be “locked down” via VeriFone’s new VeriShield security feature, preventing unauthorized access to the terminal and software and improving customer retention.
Signed (locked) terminals must be unlocked by the old processor to enable reprogramming by the new processor.
Adding a 3rd-party application to an Elavon-signed terminal:
Terminal Management completes a Multi-Application Compatibility Review (MACR)
3rd-party vendor submits their application file for the Application Signing Approval Process (ASAP)

15. What is Elavon doing about EMV?
Infrastructure
Updates
E4 and ISO 5853 messages are being updated to support the requirements
Elavon NA development utilities like viaConex are being updated to support the E4 specifications
New Equipment Solutions
New terminal offerings which are EMV and NFC-compatible
Roadmaps for Elavon gateway solutions are still being defined
Product Innovation
Elavon is exploring innovative security and mobile solutions (such as mobile wallets) that will tap in to new revenue and growth initiatives as these technologies take hold in the industry

16. Questions?