1. EMV – What you need to know… Jay J. Davis Territory Alliance Manager 360-831-7055 jay.davis@ncr.com

2. NCR Confidential Agenda EMV Announcement What is EMV? What changes will happen? Who are the players in EMV? Benefits and the Business Drivers? EMV at a Global Level 3 Types of EMV EMV Approval Levels Future of EMV Next Steps and Implementation Considerations Resources

3. NCR Confidential The announcement…

4. NCR Confidential What is EMV ? EMV is a set of specifications defined by EMV Specifications are now owned by…… Formed in February 1999 to manage, maintain and enhance EMV Specifications www.emvco.com Now also… E U R O PAY I n t e r n a t i o n a l E U R O PAY I n t e r n a t i o n a l

5. NCR Confidential What’s going to change? Consumer Cards Hardware SoftwareBack end/Host

6. NCR Confidential Who are the Players in EMV? EMVCo. They set the EMV standards. The Brands (Visa, Mastercard, Amex, Etc…) All have slightly different approval processes that must be certified. The Networks A new update in software will be required to implement EMV. This is called Level 2. All new software updates must be certified through the networks. ATM Hardware and Software Provider Will supply hardware (level 1) and software (level 2)

7. NCR Confidential Benefits and Business Drivers Reduce Fraud using a Smart Card Replacement of Magnetic Cards with Smart Cards Optimize process Both from the back end and customer facing end Innovation Consumers will demand the convenience and speed Global Presence Fraud will migrate to regions with no EMV

8. NCR Confidential Security: Mag Stripe VS Chip and Pin 3 Tracks of Personal Information Magnetic Stripe Reader Doesn’t require power or PIN to access card data Limitations when traveling abroad Financial Institution can lose $50,000 for one fraudulent attack of an ATM. Limitation of 3 track technology Microprocessor Chip Chip and Pin Secure: Can’t access chip without power and pin Consistency across the world France saw 80% reduction in Fraud Holds more data

9. NCR Confidential Global Presence NCR has learned ‘Best Practices’ from our global implementation

10. NCR Confidential 3 Types of EMV Chip and Pin NFC-Mobile Wallet Contactless Chip and Pin Contactless NFC-Mobile Wallet

11. NCR Confidential Smart Card Embossing Area 54 mm 86 mm Magnetic Stripe (back of the Card) Smart Card Chip (Microprocessor) Contacts

12. NCR Confidential EMV Approval Levels HW & Platform Terminal Application MasterCard D/C VISA D/C “EMVCo Level 2 Approval” (SW Provider ) Acquirer (Host) VISA/MasterCard “Network Certification” (Bank/Acquirer) VISA/ MasterCard “Acquirer Brand Approval” (Bank/ Acquirer) EMVCo Application Kernel “EMVCo Level 1 Approval” (HW Provider )

13. NCR Confidential Are you Hardware (level 1) Compliant? All SelfServ delivered in 2011 have EMV Hardware. For Dip Card readers have been shipped past several years on Personas and SelfServ For Motorized it has been an optional feature for Personas and SelfServ Ask if they have deployed any smart card readers. Ask if they plan to provide upgrade kits for motorized or dip. NCR’s Level 1 Status Other ATM Provider’s

14. NCR Confidential EMV Software Compliance Steps (level 2) NCR’s Plan Steps of Engagement: 1.) Make sure hardware is EMV compliant 2.) Contact your local Professional Service resource 3.) Develop an EMV Requirements & Implementation Document with the FI 4.) PS will engage engineering to develop a kernel for specific software platform 5.) PS resource will work with Networks to certify your software kernel. 6.) Networks will work to approve the requested brands. Some things to know: 1.) First come first serve w/Networks 2.) Complex process…so get started early! The Facts: US Software has not required the EMV kernel previously.

15. NCR Confidential Future of EMV- Mobile Wallet NFC Sources: Gartner Research Firm 2011 Datamonitor Research Firm 2011 Security PIN Encrypted & secured within close proximity Loyalty Can store all of your loyalty cards and coupons Bye Bye Paper Receipts Ability to download digital receipts onto your phone Convinience All your cards in one compact, organized place

16. NCR Confidential Next Steps and Implementation Considerations Planning: Formally Define Requirements Design and Build Stage Test and Pilot Training and Acceptance

17. NCR Confidential Helpful Resources EMV Official Guide http://www.emvco.com/best_practices.aspx?id=217 YouTube EMV Webinar by Smart Card Alliance http://www.youtube.com/watch?v=3nUz1kIlQyk

18. NCR Confidential Questions?

19. Thank You! Jay J. Davis Territory Alliance Manager jay.davis@ncr.com