This document summarizes an EMV migration webinar hosted by Ingenico Group. The webinar provided an overview of EMV and the current state of EMV migration in the US. It then shared lessons learned from merchants that have implemented EMV, outlining their challenges, solutions, and results. The webinar also presented nine steps for accelerating an EMV migration and discussed how to future proof payments beyond EMV through solutions like point-to-point encryption and tokenization. Ingenico Group positioned themselves as an expert partner that can help merchants get EMV ready through their diverse payment solutions.
3. Agenda
Speaker Introductions & Objective
About Ingenico Group
EMV Overview
The United States of EMV / Current State of EMV in America
Lessons Learned / EMV Migration Stories From the Field
EMV Migration / 9 Easy Steps to Accelerate the Process
Beyond EMV / Future-Proof Payment Solutions
Q&A
4. 4
Speaker Introduction
Greg Burch
VP of Strategic Initiatives
Ingenico Group / North America
Allen Friedman
VP of Payment Solutions
Ingenico Group / North America
EMV Migration Webinar / Lessons Learned – Next Steps 11/19/2015
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Objective
To discuss where we are with the U.S. EMV migration, receive insight
from merchants who have begun their EMV migration and identify next
steps that go beyond EMV.
EMV Migration Webinar / Lessons Learned – Next Steps 11/19/2015
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Poll
Out of the estimated 8 million POS terminals in use, about how many
are EMV-ready?
A) 50,000
B) 150,000
C) 300,000
D) 500,000
E) No one knows
EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
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Global footprint / multi-local solutions
$1.8B
in 2015
88
sites across
the world
35
years of
payment
expertise
global reach
170
countries
78
nationalities
5.5K
employees
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• Security-focused / EMV, NFC, P2PE
• Seamless experience / in-store, out of store and onboard
• Innovative solutions / across industries and use cases
• Trusted partner / unmatched service and support
Ingenico Group U.S. / at a glance
EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
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Trusted partner / from small merchants to global brands
Network of
1,000+
financial
institutions
Partner with
70%
of the Top 30
leading retail
brands
250K+
merchants
connected to our
platforms
Accepting
300+
payment methods
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EMV defined / what does EMV stand for?
E
M
V
EMV is a technical payments standard.
It stands for Euro Pay, MasterCard and Visa.
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EMV defined / how it works
EMV involves using smart cards that integrate a microprocessor chip, rather than
magstripe to process payment.
Cards must be physically inserted or “dipped” into smart terminal. Or, contactless
cards or payment enabled mobile devices can be used, which can be read over a
short distance.
An EMV card is also called “chip card” or “smart card”.
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EMV defined / how it works
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EMV overview / EMV is a liability shift
EMV
Liability
Deadline
EMV
Liability
Deadline
EMV
Liability
Deadline
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EMV migration / where are we now?
By the numbers – industry preparedness
48%
of U.S. cardholders
have “dipped” or
inserted their cards into
an EMV-ready terminal
EMV cards in consumers’ pockets Number of EMV terminal “users”
EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
60%
of U.S. cardholders
have received the
EMV chip cards
Based on Ingenico Group Survey – Released October 2015
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EMV migration / where are we now?
By the numbers – cardholder perceptions
of U.S. cardholders
prefer EMV cards to
magstripe (54%).
EMV vs. magstripe
46%
EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
of EMV-preferring
cardholders felt EMV
cards were more secure.
75%
More secure & durable
of magstripe preferring
cardholders attributed
their choice to the
perception that a
magstripe transaction
seems faster.
30%
Magstripe seems faster
Based on Ingenico Group Survey – Released October 2015
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EMV migration / where are we now?
By the numbers – industry education
33%
of cardholders who
tried using an EMV
chip card at the POS
did not know how to
use it. Merchants
had to instruct them.
66%
of cardholders who
received educational
material with their EMV
cards felt it was clear.
EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
Merchant intervention Educational material
Based on Ingenico Group Survey – Released October 2015
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Mattress Retailer Doesn’t Snooze on EMV
Mattress Retailer Partners with
Ingenico Group to Increase
Security and Expand Payment
Acceptance Options
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• Cost savings – with the
ability to accept debit cards,
they reduced processing fees
• EMV, NFC/contactless
ready
• Higher payment security –
increased their already
secured system with P2PE
• Flexibility – the IngEstate
terminal management
allowed Sleepy’s to manage
all smart terminals remotely
• Compliance – reduced PCI
scope by upgrading
payments technology
• Employed Ingenico Group’s
iSC Touch 480 smart terminals
• Implemented Ingenico Group’s
IngEstate terminal
management system
• They needed the ability to
accept debit, EMV and
NFC/contactless payments
• They needed to enhance their
security, beyond EMV
• They wanted to reduce
transaction fees
• They required flexibility in
managing their smart terminals
• They desired large touch
screens, that allow for signature
capture
• They needed to integrate with a
3rd party P2PE solution
Challenge /
Opportunity
Solution Results
Major retailer / EMV migration story
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Music Retailer Plays a New Song in the Tune of E-M-V
Sam Ash Music Stores
Enhances Security and
Customer Experience;
Turns to Ingenico Group for
EMV and NFC Acceptance
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• Upgraded payment
infrastructure across all 45
stores
• Gained the ability to accept
EMV, gift cards, private label
credit cards and
NFC/contactless
• Enhanced in-store customer
experience
• Improved payment security
by integrating tokenization
and P2PE solution
• Employed Ingenico Group’s
iSC Touch 250 smart
terminals
• Implemented point-to-point
encryption (P2PE) - Ingenico
Group’s On-Guard solution
• Worked with 3rd party
payment gateway, to include
tokenization
• A need to improve cardholder
security
• A need to enable EMV
• Wanted the ability to accept
mobile payments
• Required a solutions provider
that partnered with a
payment gateway
• Desired a touch screen for
signature capture and to
display digital receipts
Challenge /
Opportunity
Solution Results
Music retailer / EMV migration story
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Music retailer / EMV migration timeline
July 14
July – Dec. 14
Jan. 15
Jan. 15 – May 15
May 15
June – Sept 15
Q1 2016
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EMV migration / steps to accelerate the process
Build Chip
Implementation
Team
Assess Current
Merchant
Environment &
Conduct Needs
Analysis
Meet with Acquirer &
Payment Processors
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EMV migration / steps to accelerate the process
Design and
Implement
Test & CertifyBuild Your Project
Roadmap
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EMV migration / steps to accelerate the process
Perform Pilot Go LiveTrain Staff
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EMV migration / steps to accelerate the process
Consider a semi-integrated payments architecture:
EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
Maintains a connection between the terminal and electronic cash register (ECR)
Provides an independent connection for transactions to go “around” the ECR,
directly to the host
Sensitive payment data does not enter the POS
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EMV migration / steps to accelerate the process
Benefits of a semi-integrated payments architecture:
Simplify EMV
Migration
Leverage
“pre-certified”
solutions
Minimize upgrades
required to POS
& back office
systems
Reduce costs of
EMV migration
PCI Scope
Reduction
Reduce footprint
where sensitive
data passes through
Opportunity for
reduced PA-DSS
Lower cost of PCI
compliance
Increase chance of
audit success
Improvements
to Security
Limit attack surface
Avoid breaches
commonly occurring
in the POS
Simplify path to add
point-to-point
encryption (P2PE) &
tokenization
Avoid EMV
Certification
Bottleneck
Bypass the backlog
of merchants
simultaneously
looking for
certifications
Skip the long and
expensive process
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EMV authenticates the
validity of the card
EMV authenticates the
validity of the cardholder
EMV DOES NOT secure
the data
Beyond EMV / EMV is not enough for complete
security
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EMV must be a part of a multi-layered security to ensure complete data
protection:
• EMV for card authentication – protect against fraudulent cards
• Point-to-point encryption (P2PE) – no clear card data outside
secure POI
• Tokenization – Protect card data at rest
With these security measures in place, if there is a successful attack on
the POS, it will not yield data that can be monetized
Beyond EMV / EMV is not enough for complete
security
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Multi-layered security protects against all threats:
Threats Protection
Card Present Card-Not-Present
EMV Encryption Tokenization EMV Encryption Tokenization
Counterfeit cards
Lost & stolen cards
1
Reusing stolen data
Stealing data in transit
Stealing data at rest
1 When used with PIN CVM
Beyond EMV / EMV is not enough for complete
security
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EMV and mobile payments are
complementary technologies
• Many smart terminals that accept
EMV contactless cards also accept
NFC mobile payments – it’s the
same technology
• It’s best to accept both in order to
future-proof your POS
• Contactless payments are much
faster – taking only 5 to 10 seconds
• Dual interface cards will be the next
phase of the U.S. migration
Beyond EMV / EMV & NFC/contactless
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By upgrading to a “one size fits all” smart terminal, merchants can future-
proof their technology with scalable, flexible payment solutions:
• Contact chip card
• Contactless card acceptance
• Mobile payments
• Traditional
Beyond EMV / One-size fits all smart terminals
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EMV-ready / Ingenico Group Solutions
Leverage our global EMV expertise to get EMV-ready.
• Ingenico Group is the global leader in worldwide EMV deployments
• Ingenico Group streamlines your EMV implementation by helping you
identify the appropriate EMV-compliant solutions to meet your business
model’s specific needs
• We offer future-proof payment solutions that accept:
• EMV chip & PIN
• EMV chip & signature
• NFC/contactless – Android Pay & Apple Pay
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EMV-ready / Ingenico Group Solutions
Our diverse suite of EMV, NFC/contactless and secure solutions can fit your
business model:
iPP 310
iSC Touch 480
iSMP for iPod touch®
iCT 250
On Guard P2PE
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EMV / resources
Learn more:
• Download our EMV ebook: http://info.ingenico.us/emv-ebook-registration
• Download our EMV Survey Executive Report:
http://info.ingenico.us/emv_survey_executive_summary
• View our EMV webinars:
1. http://info.ingenico.us/emv-myths-recorded-webinar
2. http://info.ingenico.us/semi-integrated-recorded-webinar-registration
3. https://event.webcasts.com/viewer/event.jsp?ei=1069764
• Visit these EMV websites:
• Go Chip Card Information
• EMVCo
• EMV Migration Forum
• EMV USA
• Smart Card Alliance
• Links will be emailed post-webinar
EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
Greg
An EMV card is inserted into a terminal
The chip embedded in the card contains encrypted data, this is accessed by the reader in the terminal
Using data from the card, the terminal creates and sends a unique code, or “cryptogram” to the processor’s host during the transaction, validating the card
The card is removed when the transaction is completed
Greg
Counterfeit card fraud liability shift
Liability for counterfeit fraud – applies to Visa, MasterCard, American Express and Discover
Post Oct., if a merchant receives a counterfeit magstripe card (created from an EMV chip card or transaction data), at a terminal that is not POS ready, then the merchant is liable for the chargeback resulting from the fraud
Stolen card fraud liability shift
The liability shift for stolen cards applies to MasterCard, American Express and Discover
Post Oct., if a merchant accepts a stolen EMV chip card that prefers a PIN – using a terminal that doesn’t support EMV with PIN entry, the merchant will be liable for the chargeback resulting from the fraud
Greg
Greg
Greg
Greg
Allen
Allen
Allen
Allen
Allen
Allen
Step 1 / Meet with Acquirer or Card Processor
To start your migration to chip technology, it is important to meet with your acquirer or card processor who can help you set your plans in motion and help:
Determine the approved terminal configurations that meet your business needs and align with global requirements
Help you understand requirements and implementation steps for different card networks
Help test and certify POS terminals and software
Step 2 / Build Chip Implementation Team
A chip implementation project team typically includes, but is not limited to experts in the following areas: Operations, IT , Finance, Marketing, Training, Communication / Brand, Legal, Risk and Compliance
Be sure to assign a project manager
Step 3 / Assess Current Merchant Environment & Conduct Needs Analysis
Document your current payment processing environment. This allows you to identify gaps between where your business is now and where you want it to be. This documentation should include current payment data processing flow charts, system infrastructure specifications, payment decision processing points, hardware in place, software requirements, current usage extended support, financial resources available, etc. By doing this, you’ll be able to determine what your team needs to strategically and tactically plan in order to close any gaps
Be sure to consider the cardholder experience by answering the following questions:
Who will operate the terminal—the sales associate or consumer?
Will there be enough room to insert the chip card as the chip reader may be in a different place than the magnetic stripe reader?
Will you have a reminder, such as a beep, to the consumer to remove their card when the transaction is complete?
Will the transaction receipt not print until the card is removed as a reminder?
Allen
Step 4 / Build Project Roadmap
Collect any additional information you need to better understand what it is going to take to integrate chip logic into your POS system. This may involve meeting with external stakeholders including your acquirer and/or card processor. Leverage opportunities to add new services and generate revenue, and improve customer service.
Step 5 / Design and Implement
A chip implementation project team typically includes, but is not limited to experts in the following areas: Operations, IT , Finance, Marketing, Training, Communication / Brand, Legal, Risk and Compliance
Be sure to assign a project manager
Step 6 / Test and Certify
Merchants should work with their acquirer or card processor on all testing requirements for migration efforts. The acquirer will be conducting the testing and certification.
Prepare your merchant environment for Visa chip payment testing.
Establish all components from PIN pad to acquirer or card processor and back to merchant.
Ensure that all organizational areas are fully ready.
Begin unit test phase.
Repeat testing until all components successfully pass.
Ensure all pertinent parties are involved.
Allen
Step 7 / Train Staff
Make sure your sales staff is trained on the basic differences between using and accepting a magnetic-stripe versus a Visa chip card. To help you do this, we have developed a Staff Training manual for you to share with your staff to educate them on using chip technology in your business.
Step 8 / Perform Pilot Store Installation
Install required software and hardware in pilot store.
Properly place contactless readers to ensure seamless usage by cardholders and maintain the principle of a fast transaction. Some best practices include:
Make sure the reader is visible without any obstructions and is easily accessible for cardholders to use the contactless payment feature.
Place contactless card readers at least 12 inches away from each other. In retail locations where counter space is limited, the magnetic field of multiple readers in close proximity may overlap which can disrupt the contactless transaction when a single contactless card is presented.
Step 3 / Go Live