EMV and Parking - 6 Months on

dave.witts@creditcall.com www.creditcall.com/emv-migration
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EMV & Parking –
6 Months On
Dave Witts
President of US Payment Services
Creditcall Corporation
May 20, 2016

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

Examples of EMV Certifications Today
Ingenico iPP320/350
certified with First Data
& Elavon
VeriFone VX820
certified with First Data,
Chase Paymentech,
Elavon, TSYS, and
Heartland
Globalcom BV1000
in process of EMV
certification with First
Data, Elavon, Chase
Paymentech & Global
Payments
Ingenico iSelf
in process of EMV
certification with
First Data
ATTENDED UNATTENDED

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

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

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

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

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

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: www.forbes.com
30million

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

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

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)

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

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

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

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

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

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.

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

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
???

If you have any questions, please contact:
Dave Witts
President of US Payment Systems
Creditcall Corporation
315 W 36th Street, New York, NY 10018 USA
609 339 9080
dave.witts@creditcall.com
Dave.Witts59
@

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