top 5 facts merchants need to know about...

Top 5 Facts Merchants Need To Know About EMV

June, 2015

Lindsay Breathitt, Product Marketing

Steve Cole, Product Management

© 2015 Vantiv, LLC. All rights reserved.


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Agenda

• Why EMV, Why Now

• U.S. market update EMV

• Top 5 EMV facts

• Understanding EMV

integration approaches

• Preparing for EMV

• Questions

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© 2015 Vantiv, LLC. All rights reserved. © 2015 Vantiv, LLC. All rights reserved.

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Why EMV, Why Now?

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• U.S. card present fraud is above the world

average and is increasing*

• Interoperability with global payments

infrastructure

• Supports enhanced verification methods

• Offline PIN, Online PIN, Signature, No CVM

• 575 Million U.S. issued cards will have chips by

end of 2015**

*Source: Nilson Report, August 2013.

**Payments Security Task Force (PST), MasterCard release 8/2014


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What is EMV?

• EMV is a set of international standards that defines

interoperability of secure transactions across the

international payments landscape.

• EMV helps prevent fraud. Chip produces a one time

code with every transaction, making it nearly impossible

to counterfeit.

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U.S. Market EMV Timeline

“More than $11 billion was reported stolen due to credit and debit card fraud in

2013, up from $8 billion 2012…” -Javelin Strategy and Research

2014 Identity Fraud Report

April 1, 2013

Acquirer processors were

required to support merchant

acceptance of chip transactions.

October 1, 2015

Liability will shift to merchants for counterfeit fraud

card-present POS transactions if the merchant does

not have an EMV-enabled POS device

October 1, 2017

Liability shift takes effect for

transactions generated from

automated fuel dispensers

Key dates

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How EMV Works

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Step 1 An EMV card is inserted into a terminal

Step 2

The chip embedded in the card contains a unique issuer key; this is accessed by the reader in the terminal

Step 3 Using the key from the card and data from the transaction, the chip creates and sends a unique code, or “cryptogram” to the processor’s host with the approval transaction, allowing the issuer to validate the card is legitimate and not counterfeit

Step 4 The card is removed when the transaction is completed

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Top 5 Facts About EMV EMV is about fraud

prevention at the POS

• The U.S. has seen

a 70% increase in

credit card fraud

since 2007, while

the U.K. has seen

an 80% decrease

after migrating to

EMV.

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Source:

http://www.accenture.com/SiteCollectionDocuments/PDF/Acc

enture-Payments-Transformation-EMV.pdf



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EMV is a way to limit your

fraud chargeback risk

• Consider EMV in light

of fraud chargeback risk

• October 1, 2015 liability

shift – In 2015, that

liability in the United

States is estimated to

total more than $10

billion

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Source:

http://www.paymentssource.com/news/paythink/missing-

the-emv-liability-shift-bears-a-huge-cost-3018661-1.html

Top 5 Facts About EMV



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Enabling EMV at the

POS may also enable

you to accept new

contactless payment

types.

• Contactless payments

can be up to 25% faster

than paying with cash.

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Source: Deloitte, http://www.pymnts.com/wp-

content/uploads/2015/04/EMV-The-Next-Twelve-

Months-PYMNTS-ebook.pdf




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Accept foreign cards

that are already EMV-

enabled

• 45% of the World’s

payment cards are

EMV – 3.4 billion

cards.*

*Includes ~100 million

cards in the U.S.

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Source:

http://www.emvco.com/media_center.aspx?id=48




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EMV does not mean

your data is secure

• Implementing a total

secure payment

solution includes: PCI

Compliance,

Tokenization, and

Encryption from

Vantiv

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EMV Options

• Direct integration (Enterprise Merchant Approach)

• Stand alone terminal unconnected to POS (SMB)

• Integrated POS: EMV scope reduction (semi-integrated)

approach (SMB)

Terminal POS Middleware/

Gateway Processor Network

EMV Level 3 Certification

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EMV Ready Devices

• Get EMV ready

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QUESTIONS?

Visit www.vantiv.com/emv to learn

more about EMV, chip cards, and how

to better protect your business.

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http://www.vantiv.com/emv


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THANK YOU!

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