1. EMV & Parking – 6 Months On
Dave Witts President of US Payment Services
Creditcall Corporation May 20, 2016

2. After 7 Months of Liability Shift, Where Are We With EMV?
Processor focus has been on Retail due to high $$ volumes
Progress in Unattended (Parking) has been slow
Devices with specific processors have been certified for Retail
Devices with specific processors are now undergoing certifications for Unattended

3. Examples of EMV Certifications Today
ATTENDED
UNATTENDED
Globalcom BV in process of EMV certification with First Data, Elavon, Chase Paymentech & Global Payments
Ingenico iSelf in process of EMV certification with First Data
Ingenico iPP320/350 certified with First Data & Elavon
VeriFone VX820 certified with First Data, Chase Paymentech, Elavon, TSYS, and Heartland

4. October 2015 Has Passed And Compliance is Still Very Low
Retail took priority
Processors overwhelmed with certifications
Overall industry was not ready

5. Current U.S. Projected Adoption Rates (by end of 2015)
400 million EMV cards issued
59% of retail locations will be EMV-compliant
78,800 EMV chip-activated merchant locations
70% of U.S. credit cards will be issued as EMV cards

6. Current U.S. Projected Adoption Rates
86% of financial institutions planned on issuing EMV debit cards BY 2015
$3.50 Average cost for issuing a new EMV card
$500 Average cost of an EMV-compliant POS terminal
Sources: Javelin Research & Strategy, Aite Group, 2014 PULSE Debit Issuer Survey

7. Current U.S. Statistics
Approx. 1.2 billion credit & debit cards need to make the shift and 12 million POS terminals
One in four Americans have had personal and financial information compromised risking financial fraud and identity theft - EMV adoption could significantly reduce these risks
When the UK implemented EMV nearly 10 years ago, fraud from counterfeit cards declined by 56%
Source: Payments Policy Group
1.2Bn

8. Current U.S. Statistics
Consumers will be able to use their chip cards at 50% of merchants by June 2016
At least 90% of merchants will have chip readers by 2017
37% of retailers in the US can process chip- embedded cards
Sources: Strawhecker Insights & Smart Card Alliance

9. Fraud/EMV Security
In 2014 more than 30 million Americans were affected by credit card fraud
The U.S. is responsible for 47% of the world’s card fraud and 72% of the world’s breaches, while only accounting for 24% of worldwide card volume
Source:
30million

10. Latest EMVCo Figures
*note most recent numbers will be released end of May 2016

11. Attended (Retail) vs Unattended (Parking/Kiosks)
Attended far ahead in EMV certifications over unattended
Processor interest – looking at higher risk $$
Device availability (unattended) – not all devices were ready for certification in October 2015, some are still not ready…
Big retailers were driving the priority
Progress has been slow overall for attended and unattended

12. Reasons For Slow Uptake
Processors not ready / cannot cope with volumes of certifications
Certifications taking longer than expected
Processors have been slow to respond to questions during certification
Devices not ready to be certified
High cost to switch over (hardware and certification)

13. Focus on Unattended (Parking) For Slow Uptake
EMV certifications with US processors basically non-existent at this time
1st set of devices are starting certification now with mid-year estimated completion
Manufacturers still looking at what devices make sense in their equipment, not many choices to have an off-the- shelf certification

14. EMV Specification Limiting Some of The Features That Exist in Parking Today
Cost to convert/upgrade is high
Overall transaction time is slowed down due to interaction with the customer (the swipe is out!)
Device availability to start certifications
Frustration on not having a solution today due to customer demand
Mix of devices that are available to choose from
An EMV-ready device is NOT an EMV certified device. Each device has to be certified with specific processors

15. What Happens During EMV Certification (typically up to 16 months)
This is not a project to do on your own as it has many branches to take to find the EMV certified solution

16. Select an EMV Card Reader – 3 Months
A card reader is where a large part of an EMV transaction takes place through a complex dialogue between chip card and reader
Integrators must invest time in learning about EMV (e.g. Application Selection, Data Authentication, Online Processing and Issuer Script Processing), transaction flows, transaction logic and exception handling when an inevitable error occurs in the transaction

17. Processor Interfaces and EMV Messages – 6 Months
Different processors require every interface to be modified to support the new EMV data fields and process flows
Most interfaces are based on legacy code developed many years ago, the addition of new features such as EMV becomes an increasingly difficult task
Processors will have scaled their integration support sufficiently to cope with the mass of other integrators who will be following the same path

18. Card Brand Certifications – 4 months
Once processor interfaces have been updated, the complex task of end-to-end testing and certification begins
M-TIP/ADVT/AEIPS/DPAS are the 4 different testing types required
Processors have not been able to cope with the volume of certifications required before the October 2015 Liability Shift and continue to struggle now
This is NOT a one-time process – it must be repeated every three years when the EMV Kernel certification on the card reader expires.

19. Terminal Management System – 3 Months
It is essential that any EMV solution deployed has access to a TMS platform for efficient and timely deployment of updates
Without a TMS platform, there is a risk of having card readers without current software or the latest configuration

20. ? What’s next for EMV in the Parking Market?
Certifications will become available in Q2 2016
Most processor certifications should be complete by the end of 2016
Additional devices will be certified by end of 2016 – providing product choice and a more “off the shelf” approach
When looking at a “Certified” EMV solution ensure you are not locked into a specific processor, keep flexibility to change processors as the rates can change and reduce your costs ?

21. President of US Payment Systems
If you have any questions, please contact:
Dave Witts
President of US Payment Systems
Creditcall Corporation
315 W 36th Street, New York, NY USA
Dave.Witts59 @