1. Fraud Resolution Revamp MOTO FRAUD July 17 th, 2011

2. An Introduction to MOTO Fraud o MOTO is an acronym for Mail Order/Telephone Order and includes all eCommerce done either over the phone, fax or through a web site; all in a [CNP] Card-Not-Present environment. o MOTO claims often can be accepted with minimal fraud loss to Target due to Chargeback rights we have with VISA for CNP fraud activity o So in MOTO fraud claims, the goal of the team member is to pursue these chargebacks in order to minimalize potential fraud loss.

3. Processing MOTO Fraud Domestic Charges with a MOTO value of 1, 2, 3, 4, 7, 8 or 9 Domestic or International Charges with a MOTO value of 5 or 6? International Charges with a MOTO value of 1, 2, 3, 4, 7, 8 or 9 Chargeback using Reason Code 83 Complete Questionnaire in [VROL] No Affidavit Required Chargeback using Reason Code 83 Complete Questionnaire in [VROL] No Affidavit Required No Chargeback Rights Write-off to 4580 GL No Chargeback Rights Write-off to 4580 GL Chargeback using RC 83 Complete Questionnaire in [VROL] Affidavit Required Chargeback using RC 83 Complete Questionnaire in [VROL] Affidavit Required All remaining Charges under $10.00, or are no longer within Time Frames Affidavit Required Written-Off to a GL as a Fraud loss Affidavit Required Written-Off to a GL as a Fraud loss

4. Challenges: o If the cardholder does not properly indicate all fraudulent activity on the Affidavit or Cardholder Letter, we will not have chargeback rights for International Charges. o To overcome this issue Fraud Resolution team members have been provided with the transaction list letter/email to send to the cardholder to get this information. o Future scope will be to partner with fraud detection on the best ways to educate our guests in listing all disputed transactions so that we can pursue all possible chargebacks. o And although this is in place today – are there opportunities to improve our guests awareness of fraud activity?

5. Benefits o Clearer, more defined step-by-step process flow for pursuing chargebacks on Mail/Phone claims. o A critical re-evaluation of Mail/Phone as a Fraud type

6. Questions

7. Thank You!