Card Brand Mandates

Key EMV dates from Card Brands © 2012 VeriFone Systems, Inc.  2012: TECH Innovation Program (TIP) - PCI validation relief for Level 1 and Level 2 merchants that adopt dual-interfaced solutions in any year that at least 75% of the merchant transactions originate from a chip enabled terminal Note: must be capable of actually processing EMV cards and NFC contactless payments; merchants cannot just install “EMV ready” equipment....so, not really happening!  2013: Acquirer Chip Processing Mandate - Acquirers and processors must demonstrate the ability to process EMV transactions and NFC contactless payments  2015: Liability Shift from Issuer to Merchant - Merchants of any size, will be liable for domestic and cross-border counterfeit fraud committed at the point of sale if they are not using a compliant EMV & NFC POS solution (Automated Fuel merchant liability shift in 2017)

“Liability Shift” Defined  A non-compliant merchant is liable for fraud that occurs on any chip card used on a magnetic swipe terminal, with the liability for the chargeback belonging to the merchant.  A non-compliant issuer is liable for fraud that occurs on any magnetic stripe card used on a chip card- enabled terminal, with the liability for the chargeback belonging to the issuer. 3

Points to Remember  EMV is essentially a standard that dictates the interaction between a smart (chip) “card” and a POS payment technology  EMV chips can be either contact or contactless and are read & write capable  There are currently no merchant EMV mandates… only financial incentives in the form of the chargeback liability shift © 2012 VeriFone Systems, Inc.

VeriFone VX520 & Ingenico Telium 2

EMV Terminals: VeriFone VX Evolution  VX520 Countertop Dual Comm Internal PIN pad MSR EMV NFC  VX820 Customer Facing PIN pad Vx520 MSR EMV NFC NOTE: VeriFone wireless to be available once 3G solution on the market EMV NFC Hand-Over Design

EMV Terminals: Ingenico Telium2  iCT250 Countertop Dual Comm Internal PIN pad MSR EMV NFC  iWL250G Portable - GPRS Internal PIN pad MSR EMV NFC 3G Technology  iPP320 Customer Facing PIN pad iCT220 or iCT250 MSR EMV NFC  iCT220 – Class A Support Countertop Dual Comm Internal PIN pad MSR EMV

ContactlessEMVMagstripe Backlit 19 key18+ LPS printerDual IP & DialSharp Color Display Dual ProcessorCable Management NFC Small FootprintPrivacy Shield iCT250

iPP320 Countertop PIN Pad Connects to Telium Countertop Line Embedded Contactless EMV

iWL250 Contactless Small Footprint Lightweight 30 LPS Thermal Printer 25mm & 40mm Paper Roll Option 3G WirelessGPRSDynamic SIM 30 LPS Printer ContactlessSmart CardLi-Ion BatteryLightweight Charging & Comms Base