1. Robert Steinman, COO Robert@tenderarmor.com
The Most Trusted Cards in the Market
Robert Steinman, COO

2. The one truth in banking…
Loss of trust > loss of $$$

3. $38 Billion
in card-not-present (CNP) fraud losses globally per year and steadily increasing – the largest fraud category by more than 3-1 (Javelin 1/17)

4. ACI Universal Payments 2016
U.S. Stats
67%
of consumers would adopt a security service like CVV+ from a bank (TA Q1/16 and Amex 8/16)
54%
of consumers use their payment cards less after the card has been compromised (TA Q1/16 and Amex 8/16)
87%
of US merchants are using the card security code in ecommerce transactions (US Payment Card Forum 3/17)
ACI Universal Payments 2016

5. ACI Universal Payments 2016
Worldwide Stats
1 out of 86
Transactions is a fraudulent attempt
40%
after experiencing fraud of consumers use the replacement card less
30%
have experienced card fraud in the past five years
ACI Universal Payments 2016

6. Why do banks need to prevent fraud?
Lessen False Positive Declined Authorizations
International
Mandates
Diminish Replacement
Cards Costs
Increases Revenues

7. A dynamic, two-factor, fraud prevention
solution that works on all card types and channels

9. 524

10. Enrollment Sign up through your bank website:
Select cards you want to protect
Choose communication method(s) – mobile app, text, , text-on-demand
Choose how often your CVV+ code changes

12. Seasoned Industry Professionals
Madeline Aufseeser, CEO
Nationally recognized & highly-respected 30 year well connected industry veteran analyst, speaker, product leader with Fortune 500 experience
Robert Steinman, COO
Concept leader, software engineer, proven successful entrepreneur
Rodman Reef, CSO and Director
Global payments expert & former Chairman and CEO of Citibank’s Citishare Corporation, EMV Migration Forum member, former director of NYCE, Maesto, The Clearing House’s Payments Co. & the EFTA
Lester Diaz, CTO
Former platform engineer and architect at FIS with 15+ years experience
Lillie Platko, Marketing Executive
Former group head MasterCard U.S. Debit Products & JPMC veteran
Andy Copeman, European Business Development
European payment industry leader. PSD2 expert. Experience; Aite Group, and RBS
Tony Emrick, U.S. Business Development
former senior business leader STAR network
Advisory Board Members: Dan Henry, former CEO NetSpend Steven Bishop, former CTO FIS and Sandi Finn, entrepreneur, 30 year marketing professional and President of Cross Country Home Services

13. Merchant
Processor
Card Network
Issuer
Card Issuer (Bank)
When a consumer makes a purchase the merchant requests cardholder authentication and confirmation that the funds are available
Cardholder authentication can be completed by the Card Network, Issuer Processor or Card Issuer
CVV+ can reside in any one of these locations

14. Dynamic Security Code Cards
Feature
CVV+
Dynamic Security Code Cards
3D Secure
Protects CNP transaction from clearing authorization if the card is lost, stolen, account take-over, or compromised and not reported 
Supports CNP phone transactions not just online
Consumer controlled product vs. merchant controlled
No merchant integration required
Supports any card type
Supports multiple cards and card types in a single installation
Preventive vs detective
No special device required
Methodology detached from card, account, & PCI data
Works on existing cards in market
Reduces false positive declined transactions

15. Why choose CVV+ Fraud prevention not a detection or clean-up solution
Authenticates the cardholder with the issuing authorizing entity not just a specific transaction
Works in the existing eco-system without merchant dependency
PCI compliant, meets regulatory objectives (PSD2)
We’re Simple!

16. A Closer Look - Limitations & Vulnerabilities
Comparison Pts
3D Secure
CVV+
Required constituent adoption
Merchants, issuers, and consumers:
If a merchant is not using 3D secure than the issuer’s cardholder is not protected (no adoption, no coverage), unlikely there will be 100% 3DS adoption by all merchants which means banks and cardholders are still vulnerable
Issuers and consumers:
CVV+ is transparent to merchants and does not require merchants to adopt the service or change anything about the way they accept or process a transaction
Interchange and liability shift
Favors the merchant:
3DS creates a liability shift for the transaction reducing interchange rates merchants pay and reduces revenue bank card issuer receives. Subsequent fraudulent transactions become issuer responsibility (for any reason: account take over at the merchant and “friendly” fraud are two examples)
No change:
Issuers maintain interchange income at current rates and have no more or less liability responsibility
Transaction types
1.0 online only, 2.0 most ecommerce channels:
3DS does not work for phone orders representing 20% of all CNP transactions in the US & higher in Europe with even higher fraud dollar volumes. Nor can 3DS work at the POS
Online, phone, mobile, and POS:
In addition to transactions such as online, CVV+ supports phone orders and can function as a dynamic PIN replacement at the POS. Additionally, CVV+ has other use cases such as call center cardholder authentication
Authentication target
Detection solution that authenticates the specific transaction:
If the consumers’ merchant online account is hacked, the fraudster can start transacting because the card is already stored on file. 3DS only authenticates the transaction not the consumers’ merchant accounts, the consumer device, or consumers themselves
Prevention solution that authenticates the cardholder:
CVV+ authenticates the cardholder so if an individuals merchant or bank account is hacked and the security code printed on the card is entered and not the CVV+ code the transaction will get declined
Static vs. dynamic data
3DS 1.0 Static data for authentication
3DS 2.0 Dynamic data on stepped up authentication requests only
Dynamic data all the time:
CVV+ uses a dynamic code that can change as frequently as the bank or cardholder wishes
Controlling party
Merchant decision when to invoke 3DS and cardholders opt-in:
Merchants use risk based scoring models to decide when to use 3DS for both passive and stepped up authentication. Stepped up authentication requires further cardholder input during transactions.
Issuer offers service and cardholders enroll either opt-in or mandated:
All transactions for enrolled cardholders when the card security code is requested, no other cardholder action required
Installation
Requires special Access Control Server be deployed & system updates for issuers and merchants
Easy deployment with choice of:
SaaS Web API model or HSM deployment in data center

17. 67% Key Findings Product Adoption & Usage
Cardholder respondents say the product:
80% is “easy to understand”
69% is ”relevant” and “logical”
74% will make them feel safer when shopping online
70% feel it is believable and trustworthy
Sparks Research: Online shopper study, 2016
67%
of consumers are “likely” to use the product

18. CVV+ Pricing Includes:
Comparable with typical EMV card replacement costs – annual FI price per enrolled card $ $5.00 based on FI portfolio size and cardholder enrollment method
Includes:
Supporting daily CVV+ security code delivery and transaction messaging
White label English language website page templates for Bank websites
CVV+ iPhone and Android mobile app
Annual software upgrades and check-ups
Unlimited consumer transaction model
One time fees
Re-occurring fee with minimum card enrollments
Service implementation
Annual software maintenance or licensing
Monthly card on file

19. Robert Steinman, COO Robert@tenderarmor.com
Thank-you for your interest in our service
Any questions – Just call us, we are happy to help
Robert Steinman, COO