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EMV Migration Webinar / Lessons Learned + Next Steps
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.
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EMV Migration Webinar / Lessons Learned + Next Steps
- 1. EMV Migration Webinar/ Lessons Learned + Next Steps NOVEMBER 19, 2015
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- 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 VPof 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
- 5. 5 Objective To discuss wherewe 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
- 6. 6 Poll Out of theestimated 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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- 8. 8 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 9. 9 • 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
- 10. 10 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
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- 12. 12 EMV defined /what does EMV stand for? E M V EMV is a technical payments standard. It stands for Euro Pay, MasterCard and Visa. EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 13. 13 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”. EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 14. 14 EMV defined /how it works EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 15. 15 EMV overview /EMV is a liability shift EMV Liability Deadline EMV Liability Deadline EMV Liability Deadline EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 16. The United States of EMV CurrentState of EMV in America
- 17. 17 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
- 18. 18 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
- 19. 19 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
- 20. Lessons Learned EMV Migration StoriesFrom the Field
- 21. 21 Mattress Retailer Doesn’tSnooze on EMV Mattress Retailer Partners with Ingenico Group to Increase Security and Expand Payment Acceptance Options EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 22. 22 • 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 23. 23 Music Retailer Playsa 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 24. 24 • Upgraded payment infrastructureacross 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 25. 25 Music retailer /EMV migration timeline July 14 July – Dec. 14 Jan. 15 Jan. 15 – May 15 May 15 June – Sept 15 Q1 2016 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 26. EMV Migration 9 Easy Stepsto Accelerate Your EMV Migration
- 27. 27 EMV migration /steps to accelerate the process Build Chip Implementation Team Assess Current Merchant Environment & Conduct Needs Analysis Meet with Acquirer & Payment Processors EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 28. 28 EMV migration /steps to accelerate the process Design and Implement Test & CertifyBuild Your Project Roadmap EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 29. 29 EMV migration /steps to accelerate the process Perform Pilot Go LiveTrain Staff EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 30. 30 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
- 31. 31 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 32. Beyond EMV How to “Future-Proof”Your Payments
- 33. 33 EMV authenticates the validityof the card EMV authenticates the validity of the cardholder EMV DOES NOT secure the data Beyond EMV / EMV is not enough for complete security EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 34. 34 EMV must bea 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 35. 35 Multi-layered security protectsagainst 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 36. 36 EMV and mobilepayments 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 37. 37 By upgrading toa “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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 38. EMV & Ingenico Group Time toGet Ready
- 39. 39 EMV-ready / IngenicoGroup 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 40. 40 EMV-ready / IngenicoGroup 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 EMV Migration Webinar / Lessons Learned + Next Steps 11/19/2015
- 41. 41 EMV / resources Learnmore: • 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
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Editor's Notes
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- #15 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
- #16 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
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- #28 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?
- #29 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.
- #30 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
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