1. EMV Acceptance Training
July, 2015
Raymond Moorman, Director of Product, EMV
Agnes Sokol, Product Marketing, Enterprise Business

2. Agenda The EMV Story Why merchants need EMV What is EMV?
Understanding EMV within Merchant Risk Profile
Understanding the liability shift
How it works
Upgrading to EMV
Implementation Options
Featured Collateral
Featured Sales Tools
Agenda
Intro: This training will cover EMV acceptance which will be divided out into several key sections: we will start with a bit of context by covering the EMV story, then discuss why merchants need EMV. We will then cover what EMV is and how we can understand it within the merchant risk profile. We will go over the upcoming liability shift and delve deeper into how EMV transactions actually work. We will then discuss how merchants go about upgrading to EMV as well as the different implementation options which are available. Lastly, we will cover a variety of new EMV resources including collateral and featured sales tools.

3. The U.S. Has A Major Fraud Problem
Since almost all other commercial markets in the world converted to the EMV standard, the U.S. has been under siege by fraudsters.
62% of companies in the US were subject to Payments Fraud in 2014¹
The U.K. has seen payment card fraud losses drop 36% since the country adopted EMV in 2001 ²
In 2011 $1.15 billion of the total $1.35 billion in debt card fraud losses (85%) stemmed from signature debit card transactions.³
• 62% of total fraud is in-person, up from 58% year before— this is primarily caused by fraudulent transactions at POS 4
*Mercury, June 2015
*Nilson Report, August 2013.
*Craig Jones, UK Card Association, BBC Radio Wake Up To Money, May 20, 2013
*Lexis Nexis, September 2013

4. What Do Merchants Needs When it Comes To Fraud?
Protection from chargeback liability for
losses from fraudulent transactions
A way to stop counterfeit and fraudulent
card transactions at the POS
A way to reduce chargeback liability
To be perceived by customers as providing a secure POS experience

5. Merchant Risk Profile P2P – protects data in transit
Tokenization– protects data at rest
EMV – protects the issuer
Without all 3 the risk increases to our customer

6. What is EMV? EMV helps prevent fraud. Chip cards produce a one time
code with every transaction,
making it nearly impossible
to counterfeit.

7. U.S. Liability Shift
Visa, MasterCard, Discover and American Express will implement a liability shift effective October 2015.
Merchants who have not made the investment in chip-enabled technology may be held liable for card-present fraud. .

8. Liability Shift Scenarios
Rule of thumb – liability will shift to the least secure party in the transaction
Chip+SIG support will shift liability for card present counterfeit card fraud
Chip+PIN would also cover Lost+Stolen, which exception of Visa

9. U.S. Market EMV Timeline Key dates
October 1, Liability will shift to merchants for counterfeit fraud card-present POS transactions if the merchant does not have an EMV-enabled POS device
April 1, Acquirer processors were required to support merchant acceptance of chip transactions.
October 1, Liability shift takes effect for transactions generated from automated fuel dispensers
“More than $11 billion was reported stolen due to credit and debit card fraud in 2013, up from $8 billion 2012…”
-Javelin Strategy and Research Identity Fraud Report

10. Key Features and Benefits of EMV Acceptance
Reduce risk of counterfeit, lost or stolen card fraud
Reduce card skimming at the point of sale
Accept foreign cards that are already EMV enabled
Help keep your customer protected
Improve Customer Experience
at the POS
Future-proof your POS by
supporting emerging payment
technologies

11. An EMV Transaction: 4 Easy Steps1
Insert your card into the terminal facing up and chip-end first.
Do not remove the card until the transaction is complete or the transaction will be canceled. 2
Follow the on-screen prompts. 3
To help ensure only an authorized user has your card, you may be required to enter a PIN or sign the receipt. 4
Remove your card when prompted.

12. Upgrading to EMV
Merchants can get started with chip cards and contactless capable payment devices by working with their
resellers and POS software providers to implement the best upgrade solutions for their business.

13. EMV Implementation Options
The card brand cert requirement will vary for a POS developer based on how they choose to implement EMV. Stand alone terminals obviously have the most direct path to the acquirers, which is why they are the first EMV solutions we are seeing come to market. It is important to remember that each hope along the EMV transaction path has to be part of the L3 card brand certification. Contrasting stand alone with fully integrated, you can see how complex the L3 cert can be. It is important to note that if any part of that chain in the fully integrated solution changes, a separate card brand cert would need to be completed with each of the networks. The costs of these certifications can vary, but I have talked to a few developers who completed certifications in Canada, and hear a range of $50-$150k depending on resource time, testing tools used, and time it took to complete. A third approach is a semi-integrated method, where the POS initiates the transaction but hands it over to a 3rd party payment application, either residing on the POS or within the terminal device. From there the application and terminal take over conducting the EMV tranasction, and provide status information, including data needed to print EMV compliant receipts as well as provide merchant level reporting.

14. Implementation Planning
Implementing EMV may require many changes:
Hardware
Application software
Business and operational processes
Merchant associate and customer checkout experience
A successful implementation requires:
Partnership with your vendors
EMV subject matter expertise
Associate and cardholder education

15. EMV Collateral Awareness: Short Guide: 5 Reasons
You Should Upgrade to EMV
Acceptance
Infographic
EMV 101 video
Customer experience video

16. EMV Collateral Consideration: Semi-integrated One Sheet EMV Whitepaper
EMV articles
External FAQ

17. EMV Collateral
Decision:
Customer Tool
-Back Office
-Front Office

18. EMV Collateral Merchant Training Kit: Signage Flyers Payment guide
One-sheet
Glossary

19. Sales Tools Prospecting: EMV Talk track QRG Qualifying:
samples – series of 3
FAQs

20. SalesZone https://sales.vantiv.com
Where to find EMV materials?
SalesZone
Marketing collateral

21. Take the EMV Challenge!
Take the EMV quiz now available on ClassMarker, get 90% or higher on the first try and get a Starbuck’s gift card!
The EMV quiz can be found here: test/start/?quiz=qx4558c27ccece7b

22. Thank You!
Thank you for taking the time to learn about Mercury EMV Acceptance.