The new year brings new ideas, new strategies, and of course new challenges that ISOs need to understand in order to thrive and be successful. View this presentation to gain clarity on the pressing topics that impact the ISO community. - Merchant Cash Discounting and Surcharging  – where is it heading? - The latest with payment security - PCIv3 expiration through 2020 and what it means to advance your merchants to a PCI 5x device -  Android platform versus Traditional desktop and wireless terminals. What are the strengths, weaknesses and best use cases for each

1. PAYMENTS 2020 /
INDUSTRY TRENDS ISOS SHOULD
UNDERSTAND TO THRIVE IN THE
NEW YEAR
WEBINAR

2. 2
SPEAKERS
Robert Johnson
Sr. Director, Visa Rules Management (US), Client
Services
VISA
Mark Bunney
Director of Go-to- Market Strategy
Ingenico, North America
Steven Bowles
Director of Security Solutions
Ingenico, North America

3. 3
AGENDA
1. Merchant Discounting
2. Security + PCI PTS v3 Expiration
3. Android + Smart Terminals
4. Questions

4. 4
1
WHAT’S THE DEAL WITH
MERCHANT DISCOUNTING?

5. VISA’S DISCOUNT OFFER RULE #8590
5
1.5.4.12 Discount Offer – US Region and US Territories
In the US Region and a US Territory: A Merchant may request or
encourage a Cardholder to use a means of payment other than a Visa
Card or a Visa Card of a different product type (for example: Visa
Classic Card, Visa Traditional Rewards Card, Visa Signature Card)
than the Visa Card the consumer initially presents. Except where
prohibited by applicable laws or regulations, the Merchant may do so
by methods that include, but are not limited to:
 Offering the consumer an immediate discount from the Merchant’s
list, stated, or standard price, a rebate, a free or discounted product
or service, or any other incentive or benefit if the consumer uses a
particular general purpose payment card with an acceptance brand
other than a Visa Card or other particular means of payment
 Offering the consumer an immediate discount from the Merchant’s
list, stated, or standard price, a rebate, a free or discounted product
or service, or any other incentive or benefit if the consumer, who
initially presents a Visa Card, uses instead another general
purpose payment card or another means of payment

6. VISA’S DISCOUNT OFFER RULE #8590 – (CONT.)
6
1.5.4.12 Discount Offer – US Region and US
Territories – (Cont.)
 Expressing a preference for the use of a particular general
purpose payment card or means of payment
 Promoting the use of a particular general purpose payment
card with an acceptance brand other than Visa or means of
payment through posted information, through the size,
prominence, or sequencing of payment choices, or through
other communications to consumers
 Communicating to consumers the reasonably estimated or
actual costs incurred by the Merchant when a consumer
uses a particular general purpose payment card or means
of payment or the relative costs of using different general
purpose payment cards or means of payment

7. VISA’S DISCOUNT OFFER RULE EXPLAINED
A merchant may offer an immediate discount, under the following conditions:
Geographic Applicability:
When located in the US or US
Territory ONLY
7
Alternative Payment Types
Can Be Prompted For:
When the cardholder presents a
VISA card the merchant can ask for
one of the following
 Another type of VISA card
 Another general purpose
card with an acceptance
brand other than VISA
 Another means of payment
Where to apply the
discount:
 Merchant’s list price
 Stated price
 OR Standard Price

8. VISA’S DISCOUNT OFFER RULE EXPLAINED (CONT.)
8
Types of Discounts → Discount can be offered in the form of:
 A rebate
 A free or discounted product or service
 Any other incentive or benefit
Marketing the Discount:
 A Merchant may promote the discount offer using signage or through other
communications
 Any materials can communicate to the cardholder:
• the reasonably estimated or actual costs incurred by the Merchant when a
consumer uses a particular general purpose payment card or means of
payment
OR
• the relative costs of using different general purpose payment cards or means
of payment

9. COMMUNICATING THE DISCOUNT
Prices must be displayed in either:
NOTE: Showing only the discounted price and increasing it upon payment with a Visa card is a surcharge NOT a discount
Single Visa Price: The price charged when using a Visa Card Dual Pricing: Both the price charged when using a Visa card
AND the discounted price for other payment methods

10. COMMON USAGE – PETROLEUM SALES
Both prices frequently displayed but also cash price shown alone
NOTE: Cash-price only on station billboard is acceptable since card price
is also shown on the Automated Fuel Dispenser

11. IN SUMMARY
11
Ask for a particular type of Visa card, other general
purpose payment card or other payment method
− This only applies in the US Region and its Territories
Conditions for offering a discount
− Can be applied to the Merchant’s list, stated, or standard
price
− Discount can be offered in the form of a rebate, a free or
discounted product or service or any other incentive or
benefit
Promote the discount offer using signage and can
communicate to the reasonably estimated, relative or
actual costs of different payment options
− Acquirers cannot prohibit a merchant doing this
− Acquirers can permit a merchant to accept only Visa
cards
In order to offer an immediate discount, a merchant may:

12. 2
SECURITY +
PCI PTSv3 Expiration Implications

13. MARKET CHALLENGES
Keep my daily business running while securing transactions
13
Contactless Adoption
Improving the perception:
63% of cardholders don’t trust
that contactless is secure
It’s both secure & improves
the cardholder experience
PCI Compliance
Keeping pace with
evolving Payment
Standard
Security as a Differentiator
Can security be more than just
a cost of doing business
87% of Cardholders consider
security a top attribute
Protecting Cardholder Data
Cardholders demand that
Merchants protect their
Payment and Personal Data
71% will stop shopping at a
merchant if identity is stolen

14. PCI PTS V3 EXPIRATION
14
What does it mean to advance your merchants to a PCI 5x Device?
PCI PTS v3 Approved Devices Expire 30 Apr 2020
• They DO NOT have to be pulled out of service.
• Not possible to update the product with new features.*
Brands restrict sale and deployment after expiry.**
Value of Migrating to PCI PTS v5 Approved Devices
• Protect merchant investments (Approvals good until
2026)
• Actively support the latest features (P2PE,
Tokenization, Contactless, Loyalty, Estate
Management, Stronger Encryption, Remote Key
Loading, etc.)
*https://www.ingenico.us/support/end-of-life-notices
** https://usa.visa.com/dam/VCOM/global/partner-with-us/documents/visa-ped-requirments.pdf

15. WHY MERCHANTS NEED P2PE
P2PE
immediately
encrypts
Cardholder
Data
Cardholder
data
unreadable
in Merchant
Environment
Payment
gateway
decrypts
data for
authorization
15
What is P2PE?

16. WHY MERCHANTS NEED P2PE
16
Every Merchant Needs P2PE!
All transmitted cardholder data must be handled in compliance
with PCI, and P2PE helps by:
• Eliminating the ability for merchants to decrypt cardholder
data flowing through their networks
• Greatly reducing the scope & cost of Merchant Compliance
• Protects the Merchant and their Customers
How P2PE Differs Between Integrated vs Semi-Integrated
• Integrated: card data travels through all elements of the
payment environment before reaching the gateway.
P2PE eliminates risks of exposing cardholder in the Merchant
Environment
• Semi-Integrated: card data is separated from the merchant
environment.
P2PE protects data during transmission to the gateway &
eliminates the need for PA-DSS validation of payment apps

17. 3 THINGS TO KNOW ABOUT P2PE V3.0
17
No major changes to the technical requirements
ISO Opportunity for new P2PE Component Offerings as
part of Encryption Management Services:
POI Deployment & POI Management
Don’t Wait!
P2PE v2.0 and v3.0 both be valid assessment options
for 18 months

18. WAVING IN CONTACTLESS PAYMENTS
Contactless is both secure and improves the speed of transactions
18
Mobile Shutdown
Today’s Banking Apps
make it easy to disable
lost/stolen cards.
Perception
Contactless isn’t trusted by
US consumers
Cardholder Data More Secure
Contactless EMV Cards use
dynamic data
Mobile Contactless uses
payment tokens unique to
each phone
ePickpocketing Not Easy
Card read proximities are
1.5 inches (4 cm)
Reader must be in contact
with the Card 2-5 seconds

19. 19
3 ANDROID + SMART TERMINALS

20. MARKET TRENDS
Optimizing the checkout is core to delivering a strong in-store experience
Consumers today have little tolerance for friction when shopping in-store,
and they expect to have streamlined options along the path to purchase.
Learn More → http://www.bettercheckoutexperience.com/

21. FROM WHAT WE ARE SEEING IN THE MARKET…
21
New technologies
enabling
Payment &
Business Services
Convergence /
Business Apps / Cloud SW /
Global API’s
Merchants Services
Convergence
ECR / POS Integration /
Financial services
New Consumers
Habits /
Cross channel experience
New way to pay (APM / QR
Code)
Acquiring business
evolution /
PCI/EMV regulations -
Alternative Payment Methods -
eCommerce

22. CHALLENGES
For Consumers vs Merchants
Use an user-friendly payment
solution (as smartphone)
Use multimodal
acceptance options
Pay anywhere, anytime
Pay safely
Propose additional
services
Ensure constant
payments’ security
Reduce overall costs
Preserve the estate at
any time
Enhance checkout
experience
Offer all payment
methods
22
Learn More → http://www.bettercheckoutexperience.com/

23. OPTIONS TO MEET MERCHANTS NEEDS
23
In Lane Smart Terminals
SMB or Enterprise
Mobile + Wireless Smart Terminals
Benefits
• Mobility
• Increased sales opportunities
• Economical EMV options
• Faster checkouts with line busting
• Convenient mobile options
Micro-Merchant, SMB or Enterprise
Tablet/Android-Based Smart Terminals
Benefits
• Familiarity – user interface
• Innovative
• Flexible Business Applications
• Cloud Functionality
• Developer-Friendly
Use Cases and Best Fits
• On premise mobility
• Off-premise mobility
• POS Countertop: Full, Digital Self Services
• Retail, hospitality, service, and more

24. OPTIONS TO MEET MERCHANTS NEEDS
24
Tablet/Android-Based Smart Terminals
Use Case & Benefits
• Business & payment use cases (POS)
• Mobile and stationary use case
• Android Familiarity – user interface
• Developer-Friendly SDK – access to large
developer community familiar with Android
Key Things to Keep in Mind
• Evaluate the use case, market segment, and
customer size for the optimal solution
• Open vs Closed Android platform & versions
• Solution ecosystem available: software &
cloud, EMV cert, validated P2PE, form
factors, ISV support, future proofing, etc.
• Integration flexibility into a third party
hardware (i.e. tablets)
Micro-Merchant, SMB or Enterprise
Mobile + Wireless Smart Terminals
Use Case & Benefits
• Stand alone and mobile solutions (i.e. line
busting, etc.) and companion to other devices
• Convenient mobile options for any customer
need
• Easy integration and SDK support
Key Things to Keep in Mind
• Evaluate the use case and customer for the
best solution (on or off premise)
• EMV pre-certified solution available to reduce
time to market
• Flexibility to meet iOS, Windows and Android
mobile and stationary devices
• Mobile accessory options (stands,
enclosures, charging, etc.)
Micro-Merchant, SMB or Enterprise
In Lane Smart Terminals
SMB or Enterprise
Use Case & Benefits
• In Lane, Self Service & Standalone
• Designed for high volume environments
• Easy integration and SDK support
Key Things to Keep in Mind
• Choosing the optimal solution by use case –
flexibility in form factors and consumer
interaction
• EMV pre-certified solution available to reduce
time to market
• Software lifecycle and ability to support new
consumer interactions

25. KEY TAKEAWAYS
25
✓ Merchant Discounting: Merchants may offer a discount for alternative payment method but the list price must be reduced at the time a
card is presented or show alongside the higher list price before the purchase is made
✓ PCI PTS v3: After April 30, 2020, devices do NOT have to be pulled; however, merchants won’t have access to the latest features that
enhance the customer experience, such as loyalty and contactless and merchants won’t have access to business tools such as estate
mangement.
✓ Android + Smart Terminals: It’s best to understand the use-case and what solution fits best with the customer and merchant needs.
There are different form factors and features → all must be considered for a perfect balance.

26. 26