VeriFone ConfidentialSeptember 2004 1

Leo KassoumisManager

Cards and Consumer Banking Products Support Division

Case Study

VeriFone ConfidentialSeptember 2004 2

About Alpha Bank

Alpha Bank, founded in 1879, is the second largest Bank in Greece

With more than 550 Branches, Alpha Bank Group is also active in the international banking market, with presence in Cyprus, Romania, Bulgaria, Serbia & Montenegro, Albania, FYROM as well as in New York and London

Alpha Bank won the Best Greek Bank award for the year 2005, by Euromoney organisation

Alpha Bank is listed in the Athens Stock Exchange

VeriFone ConfidentialSeptember 2004 3

Alpha Bank Card Business

A pioneer in:• introducing payment cards • developing acquiring network

even before the booming of the consumer credit market in Greece

The sole Issuer and Acquirer of all three major International Brands (Visa, MasterCard, American Express)

The largest Issuer & Acquirer of Visa cards in the country

Since 1995 the exclusive Issuer & Acquirer of American Express cards

Comprehensive portfolio with a range of products for all customer segments

Alpha Bank has a large acquiring network of more than 40.000 POSs called Alphalink

VeriFone ConfidentialSeptember 2004 4

Alpha Bank – Merchant Acquiring

1989 - Commenced card acquiring for Visa in Greece1990 - Launch of Alphalink, the Bank’s proprietary POS terminal

network servicing Visa cards with Verifone terminals1995 - Commenced sole card acquiring for American Express in Greece 2001 - Commenced card acquiring for MasterCard

- Achieved No.1 status in card acquiring (by volume) 2003 - First to launch Verified by Visa secure e-commerce

- Agreement with Eurobank to share POS networks 2004 - First fully EMV compliant Olympic Games facilities on GSM and

fixed line POS terminals2005 - Development of the infrastructure for the smart, chip based

XLS loyalty scheme called “BonuS”

VeriFone ConfidentialSeptember 2004 5

Alpha Bank & Printec - Verifone 1990 – The beginning of a successful cooperation

• The first customer of Verifone in Greece with Tranz family of terminals

• Alpha Bank with the help of Printec launched the first electronic data capture network in Greece (Alphalink) facing the following challenges:

– Completely new transaction environment to merchants requiring extensive training and efficient HELP DESK services

– Unstable communications environment mainly in the islands– High communication costs– Not efficient Terminal Management System– Low speed terminals with apprx. 30 secs transaction time– Floor limit environment with high fraud

VeriFone ConfidentialSeptember 2004 6

Alpha Bank & Printec - Verifone

Working together – «ΜΑΖΙ»• To resolve the communication issues, we have incorporated

ALPHALINK to ALPHANET the Bank’s on line network

PSTN

Alphanet covering all Greece

Local callsLower costs

TMS Acq. Host

X25

High Volume Environments(e.g. Supermarkets – Large retailers)

On line connection

Alphalink Terminals

VeriFone ConfidentialSeptember 2004 7

Alpha Bank & Printec - Verifone Working together – «ΜΑΖΙ»

• To face the high fraud within the floor limit environment– We introduced a very sophisticated hot file management:

Hot files downloaded every night to the terminals

• To face the need for frequent upgrades of the application software:

– We designed and implemented a new Terminal Management System which became in the years to come a standard for the Greek market

• To improve in transaction speed and application efficiency:– We migrated the network to an ISO 8583 environment

VeriFone ConfidentialSeptember 2004 8

Alpha Bank & Printec - Verifone Working together – «ΜΑΖΙ»

• Athens 2004 Olympic Games– The first ever fully EMV compliant POS network in all

Olympic venues– Network of 650 Verifone Omni 3750– A 24/7 support plan established and executed to detail– Olympic project has been the biggest EMV cross

border interoperability test in history

• Successful rollout of EMV on Verifone terminals all over Greece

VeriFone ConfidentialSeptember 2004 9

Alpha Bank & Printec - Verifone Working together – «ΜΑΖΙ»

• BonuS

– High-tech multi merchant loyalty program based on the Welcome XLS platform, introduced in the Greek market by American Express and Alpha Bank

– Launched recently utilizing Verifone Omni 3750 and Vx510 terminals

– Great effort to integrate successfully the EMV application software with the XLS platform

VeriFone ConfidentialSeptember 2004 10

Major challenges for Greek Acquirers Multiple terminals per merchant, easy for the merchant

to switch bank • Merchant selects which terminal to use based on 2 factors:

– Lower discount rates– Higher transaction speed

Need to consolidate different terminal networks and lower the costs• Cardlink – Alpha Bank, Eurobank, Diners

Terminal reliability is key, together with back office systems reliability:• Terminal Downtime can push merchant to switch to other bank• Merchants easily get rid of slow or malfunctioning terminals

VeriFone ConfidentialSeptember 2004 11

Printec - Verifone Key strengths for Alpha Bank

Efficient Local Support for HW & SW

Product range

Product Quality and Reliability

Software flexibility

Alpha Bank’s POS network• 10.000 Tranz 460 terminals• 8.000 Omni terminals• Recently we placed an order for Vx510 terminals• We are investigating the possibility of utilizing Vx610 WiFi

terminals for special environments

Thank You!Thank You!