1. Presented by: Phil Hogg, Vice President, Partner Channels,
FlexPoint EMV Integrated Solution
Presented by: Phil Hogg, Vice President, Partner Channels,
Pivotal Payments 1

2. Introduction to Integrated Payments
Agenda
Introduction to Integrated Payments
Payment Integration Benefits to Pivotal Partners
Compelling Merchant Events – EMV & PCI
FlexPoint EMV Integrated Solution
Pivotal’s Experience Powering Your Success

3. Agenda
Contents
Introduction to Integrated Payments

4. Agenda
The Merchant Landscape is Becoming Complicated

5. Agenda Holistic Restaurant Management Menu/Item change management
Why Integrated POS Systems are Growing in Popularity? – Restaurant Example
Holistic Restaurant Management
Menu/Item change management
Kitchen management
Floor management
Real time inventory control
Employee time/attendance
Promotions management
Web ordering and delivery
Integrate to: bar management applications; accounting and payroll applications; and to payment applications

6. Key Benefits of Integrated Payments include:
Merchant Advantages with Integrated Payments
Key Benefits of Integrated Payments include:
Reduced Key Entry Errors
With traditional stand alone terminals, the customer charge must be re-entered into the POS terminal, resulting in potential errors.
Holistic Reconciliation
During batch out, a joint reconciliation between the POS Software and Payment Processing Software occurs; saving time and errors. This accurate reconciliation can then be forwarded to an integrated ERP, if applicable.
Future-Proof Benefits
Integration provides future-proof benefits such as the ability to easily integrate gift and loyalty cards and pay-at-the-table solutions

7. Agenda
Contents
Payments Integration Benefits to Pivotal Partners

8. Payment Integration Benefits to Pivotal Partners
Target Merchants with Higher Processing Volumes and less Attrition
ENHANCED PARTNER REVENUES
Establish a Consultative Sales Solution Capability
REDEFINE YOUR ACQUISITION STRATEGY
Future Proof Your Merchants’ Investments
TECHNOLOGY
SOLUTIONS
CONSULTING

9. Benefits to Pivotal Partners
Target Merchants with Higher Processing Volumes and less Attrition
ENHANCED PARTNER REVENUES
Establish a Consultative Sales Solution Capability
REDEFINE YOUR ACQUISITION STRATEGY
Future Proof Your Merchants’ Investments
TECHNOLOGY
SOLUTIONS
CONSULTING

10. Traits of Integrated Merchants
Enhanced Partner Revenues
Traits of Integrated Merchants
Higher Processing Volumes
Merchant processing volumes are typically at least 2-3 times higher than a traditional stand alone merchant
Investment required in the POS software is justified by the higher processing volumes
Direct result is an increase in revenues to Pivotal Partners
Higher Contract Term
Merchants using integrated payment processing typically stay longer with their payment processor than those with stand alone terminals
Integration of software and associated benefits to merchant creates a “stickiness” not found in stand alone
Direct result is less attrition and higher revenues per merchant over an increased contract term

11. Benefits to Pivotal Partners
Target Merchants with Higher Processing Volumes and less Attrition
ENHANCED PARTNER REVENUES
Establish a Consultative Sales Solution Capability
REDEFINE YOUR ACQUISITION STRATEGY
Future Proof Your Merchants’ Investments
TECHNOLOGY
SOLUTIONS
CONSULTING

12. Embrace Integrated Payments
Redefine Your Acquisition Strategy
Embrace Integrated Payments
Opportunity to pitch to non-compliant merchants.
Non-Compliant Merchants
Opportunity to upgrade existing merchants and protect them from other ISOs.
Upgrade Existing Merchants
Opportunity to sell to merchants with existing POS, ECR or ISV solutions.
Upsell Merchants with Existing Systems

13. Benefits to Pivotal Partners
Target Merchants with Higher Processing Volumes and less Attrition
ENHANCED PARTNER REVENUES
Establish a Consultative Sales Solution Capability
REDEFINE YOUR ACQUISITION STRATEGY
Future Proof Your Merchants’ Investments
TECHNOLOGY
SOLUTIONS
CONSULTING

14. Re-Invent Your Business Model
Technology Solutions Consulting
Re-Invent Your Business Model
Sell on Value – Not Simply Price
Through Pivotal training, you can re-invent your business to focus on solutions selling and avoiding price-only negotiations
Establish a Trusted Advisor Status with Your Merchant
By changing your business model to that of a solutions selling business, you become the trusted advisor to the Merchant
This status adds additional stickiness to your relationship that cannot be obtained through selling on price.
Pivotal Developer Partners Looking for Dealers
A number of our Developer Partners are looking for Dealers who know how to close.
Our Pivotal Partners are ideally suited for this role and can benefit from enhanced technology training and residuals on POS Software sales.

15. Agenda
Contents
Compelling Merchant Events – EMV & PCI

16. Extensive Media Coverage
Timing – The FlexPoint EMV Opportunity is NOW!
American consumers are becoming increasingly aware about credit card security, with the looming deadline for implementing EMV-compliant hardware at the point of sale fast approaching.
83%
64%
75%
Extensive Media Coverage
52%
Awareness Level
Aware of recent security breaches at the point of sale.
Regulatory Pressure:
The US deadline for implementing EMV is October 1, Liability for fraudulent transactions will then shift to merchants who have not implemented Chip & PIN hardware.
Consumers indicated they are holding merchants responsible for data breaches.
Blaming Merchants
Heard about data breaches through the media.
Changing Purchase Habits
Concerned about their data being stolen in the future, shoppers may change their purchase habits.
Data from TSYS infographic “Consumer Insecurity About Data Insecurity”, July 2014.

17. Agenda EMV PCI Timing – The FlexPoint EMV Opportunity is NOW!
Europay, MasterCard and Visa (EMV):
An international standard for smart credit cards that have a built-in CPU chip.
Conceived between Europay, MasterCard and Visa to ensure a global standard for authenticating credit and debit card transactions.
EMV chip card transactions improve security against fraud compared to magnetic stripe card transactions that rely on the holder's signature.
EMV
Payment Card Industry (PCI):
Founded by American Express, Discover, JCB, MasterCard and Visa, requires service providers, banks and high-volume merchants to follow strict security guidelines, including:
Building and maintaining a secure network.
Protecting cardholder data.
Maintaining a vulnerability management program.
Implementing strong access control measures.
Regularly monitoring and testing networks.
Maintaining an information security policy.
PCI

18. Agenda
Introducing…

19. Simplicity. Security. Speed.
FlexPoint is Pivotal’s proprietary solution that makes EMV integration simple, straightforward and inexpensive with no additional charge for middleware.
FlexPoint consists of an EMV-certified payment application that complies with the industry’s most stringent security standards.
FlexPoint reduces integration from months to days with no need for recertification, a single integration spec and rapid, seamless software upgrades via FlexControl.

20. Integrated EMV Solution Back Office Server (on site)
FlexPoint’s integrated EMV solution transports encrypted data directly to the processor, reducing PCI and EMV from scope.
Integrated EMV Solution
POS System
Processor
FlexPoint Setup
Terminal/PIN Pad
POS System
Back Office Server (on site)
Middleware Gateway
Processor
Typical Setup

21. Replaces Middleware & Gateways:
No Additional Middleware Required
Integration device connects directly to the processor with no need for additional middleware or gateway.
Merchants can avoid costly middleware licensing fees.
Merchants can avoid time-consuming and expensive third party integrations.
Merchants reporting and reconciliation is simpler through FlexPoint integration to Pivotal360 with chain management capabilities.
Replaces Middleware & Gateways:
Slipstream, Net-E-Pay, Merchant Link, PC Charge, Skipjack, etc…
Integration Device Replaces:
Precidia, DataCap, Twin Tran, IP Tran, Magtek iPad Signature Capture, IDtech / Magtek, etc…

22. Cost of the FlexPoint 225 $175 Cost Savings with FlexPoint:
Merchant Savings Significantly Outweigh New Pin Pad Costs
FlexPoint offers merchants a host of saving opportunities. After taking into account the cost of the FlexPoint 225 Device, a Merchant can save almost $1,600 in the 1st Year and over $1,400 each subsequent year.
Cost of the FlexPoint $175
Cost Savings with FlexPoint:
Elimination of Mag Stripe Reader $50.00
Elimination of Pin Pad $130.00
Elimination of Third-Party Middleware
Deployment Fee $100.00
Monthly Fee $12.50/mth.
Elimination of Gateway Fee
Set-Up Fee $25.00
Monthly Fee $20.00/mth.
Reduced PCI Compliance Costs
Elimination of PCI DSS Annual Validation Requirement $600 - $1200/yr.

23. PIN Pad, Hardware Middleware Provider PCI Scope
No Recertification Required
Traditional full integration requires an ISV to work with a PIN pad and middleware provider, requiring additional testing and recertification.
Each integration point requires testing and certification
PIN Pad,
Hardware
Middleware
Provider
PCI
Scope
Since the ISV is handling card and chip data, it becomes in scope for both PCI and EMV

24. Ease of 3rd Party App Integration
Core Payment application remains out of scope for EMV approval by card brands due to firewall.
API to 3rd party platform allows flexibility for developer to add any app
Gift/loyalty,
LevelUP,
Foursquare,
Prepaid,
etc.
3rd Party
Development
Platform
Core Payment
Application
API to add:
Provides uniqueness and flexibility for both ISVs and merchants
Firewall between platform and core payment app ensures no interference with payment cards and keeps developer out of scope for PCI/EMV

25. FlexPoint Integration
Rapid Integration
Strength of Innovation
Reduces typical integration cycle from months to just days!
Save thousands of dollars in manpower and development costs.
Simple API for POS system to call terminal and receive response.
Significantly reduces PCI and EMV from scope for ISVs.
Full Development / Integration
Requirements
Design
Build
Testing
Certification
Deployment
Time to Complete
12-18 Months
FlexPoint Integration
Test
Deploy
Time to Deploy: Days!

26. Rapid Integration
Strength of Innovation
FlexPoint provides focus, simplicity, cost-effectiveness and speed of integration for VARs and ISVs.
Focus: VAR/ISV focuses on their core competencies and leaves the payment, security and EMV aspect to FlexPoint.
Simplicity: With as few as 5 data fields, VAR/ISV can be integrated, certified and ready to deploy a complete EMV solution.
Cost-effectiveness: Drastic reduction of certification timelines.
Cross-Border: FlexPoint platform works in the United States & Canada.

27. No need for VARs/ISVs to redevelop and recertify.
Future-Proof and Seamless Updates
Terminals automatically check for updates daily, which are "pushed" to the device during business downtime to minimize disruption.
FlexControl
No need for VARs/ISVs to redevelop and recertify.
No need to swap terminals.
Faster time-to-market to launch new products and services.
Ensures continuous compliance and processor terminal management update control.

28. Agenda
Contents
Pivotal’s Experience Powering Your Success

29. Operational & EMV Integration Strength
Agenda
Pivotal Experience
Unsurpassed EMV Knowledge
Experience meets expertise:
5 years of EMV product experience in Canada.
Technical expertise in all implementations of EMV: Chip & PIN, Contactless, Interac Debit, VisaPayWave, and MasterCard PayPass.
Principal Members of Advanced Card Technologies (ACT) Canada
Ready Now for the October, 2015 USA Liability Shift.
Technical Knowledge
Operations:
EMV complexity does not stop at the purchase of a compliant terminal – it simply begins.
Pivotal’s Client Care team, having 5 more years of EMV experience than many of our competitors, will be at the ready to answer your customers’ questions about new EMV procedures.
Integrations:
Simple: with as few as 5 data fields, VARs/ISVs can be integrated, certified and ready to deploy a complete EMV solution.
Operational & EMV Integration Strength

30. Focused Integration Support
Agenda
Pivotal Experience
Integration and Support
Simple integration of proprietary platforms:
Faster Implementations
Expands your business
Increases your profits
Improves you clients sales
FlexPoint Solution
From start to finish:
Dedicated integration experts
Multiple payment platforms to choose from
SDK and API readily available
Sample code libraries
Wide variety of devices supported
Transaction support for all verticals
Focused Integration Support

31. Thank You
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