HarlandClarkeWebcast06-08-2016
EMVDistributionStrategiesSimplifiedTRANSCRIPT
PresenterGregKuyava,KeyAccountExecutive,HarlandClarkeMarketingServices
Jeb:
Goodday,andwelcometoHarlandClarke’swebinar.Today’stopicisEMV
DistributionStrategiesSimplified.Thiswebinarisbeingrecordedandwillbe
providedtoyoualongwiththepresentationrecordinganddeckwithinafew
days.Ifyouhaveanyquestions,pleaseuseyourquestionboxlocatedinthe
webinarcontrolpanel.Yourquestionsareprivateandareonlyseenbythe
presenters.I’dnowliketoturnoverthecalltoGregKuyava,theKeyAccount
ExecutiveforHarlandClarkeMarketingServices.Greg,youhavethecall.
Greg:
ThankyouJeb,andI’dliketothankeveryonewhoistakingtimeoutoftheir
busyscheduleandjoiningustoday.I’mveryexcitedtotalkaboutEMV
distributionstrategies,andspecifically,howaninstantissuesolutionlike
Card@Oncecansupportthosestrategies.AsJebhadsaid,mynameisGreg
Kuyava.I’mtheKeyAccountExecutivewithinHarlandClarkeMarketingServices.
IalsospentanumberofyearsasaProductDeveloperandMarketingManager
undertheirMarketingDepartment.Iwasinstrumentalinbringingourinstant
issueandourEMVprogramtothemarketforHarlandClarke,soIhopetoday
willprovetobeveryinsightfulandalotofinformation.
Thewaywe’regoingtohandletoday’sconversationisthroughtheAgenda.
We’regoingtofirsttalkalittlebitabouttheEMV-DistributionTrends,andthen
we’regoingtotalkaboutCardIssuance.Giveanoverviewofhowthatworks.
We’regoingtotalkaboutInstantIssue,anddoanoverviewofthatparticular
programinCard@Once.We’rethengoingtotalkspecificallyaboutCard@Once
andThingsthatMatterwithinCard@Once.Thenlastbutnotleast,wewillbe
fieldingquestions.Jeb,ifIcouldhaveyouforwardusallthewaydowntothe
EMVTrendsintheMarket.Therewego.We’llgoonemore.
Allright,sothenextslideis–whatwe’regoingtodotomixthingsupalittlebit
andkeepeveryone’sattentionallthewaythrough,we’regoingtodoacoupleof
differentgamesoractivitiesforyoutojustcomebackintothepresentation.If
you’reworkingwith,orifyou’relisteningwithagroup,orifyou’relisteningjust
byyourself,fromtimetotimewe’lldopollquestionsandstufflikethis.Thefirst
oneisEMVNumberstoKnow.Thesethreepercentages,40%,60%,and70%,
representacertaintrendintheEMVmarket,andwhatIwantyoutodoright
nowisthinkaboutwhat40,60,and70%,whatthosepercentagescould
represent.Nowasyou’rethinkingthatover,Iwilltellyouthattheyrepresent
trendsthatweretowardstheendof2015.They’renotcurrentinthemarket
rightnow,butthey’renottoofaraway.I’llletyoueitherwritedownorjust
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thinkaboutwhatyourguessis,orifyou’reinalargergroup,shoutitouttothat
group.
Allright,let’stransitionandtakealookatwhattheseactualpercentagesare.
Thefirstoneis40%.Attheendof2015,therewerecloseto40%ofthedebit
creditsthatwerebeingdistributedintotheUnitedStatesmarketdidhavean
EMVchiponthem.Sixtypercentofthemerchantsintheirlocationwereactually
EMVready.Nowmostofthatwasdrivenbythelargestores.ThingslikeHome
Depot,Target.Imentionthosenamesspecificallybecausetheyhadtroubles
withbreachesonmagneticstripesinthelastcoupleofyears,andwe’reslowly
seeingthemomandpopshopsdeveloptheirEMVandimplementtheirEMV
strategyaswell.Thenlastbutnotleast,the70%representedthenumberof
creditcardstowardstheendof2015thatwereinthemarket.
Now,what’sinterestingisisyouseeaprettysignificantgapbetweenthedebit
cardsandthecreditcardsfrom40upto70%,andmostofthatwasdueto
figuringouttheU.S.CommonAIDandhowtoattachoptionsaroundtheDurbin
Amendmentthatneededtobehandledinthedebitcardversuscreditcard.
Creditcardprogramswereabletobeimplementedandstartedmuchearlierand
quicker.Debitcardsneededtowaitfortheindustrytofigureouthowtheywere
goingtohandletheTermsandConditionsoftheDurbinAmendment.
Transitioningdowntothenextslide,Ijustwanttocomparethesestatistics,40,
60,70,tosomeresearch,industryresearch,thatwedidatthecloseoforright
around2014.Wewentout,andwedidthisresearch.AlongwithourCPICard
Groupdidthisresearch.Welookedatthreeresearchfirms,andtheywentout
andlookedatcardholders.Theirpredictionswere,bytheendof2015,thatdebit
cards,representedbytheyellow,would–ifwe’relookingatFirstAnnapolisfor
example,theythoughtitwasgoingtoberightaround32%,oratleastthat’s
whatfinancialinstitutionsweretoldthem,whilethecreditcardwasgoingpretty
closeto68.
FirstAnnapoliswasprettydarncloseinwhattheirresearchshowed.AiteGroup
was40and70,exactlyon,andthenJavelinandthefinancialinstitutionsthat
theywereconductingthisresearchtoweren’tnearlyasoptimistic,forlackofa
betterterm.Theywerecloserto17and29.However,becausewecanseethat
we’reprettydarnclosefrom40to70%,thatwewouldseethatthesetrends
continuedtogointhisway.BothFirstAnnapolisandAiteareclosetoalmost
70%ondebitcardsandalmost100%oncreditandthenby2017fullyexpected
tohaveallcardsoutinthemarkethavingthatEMVchiponthat.
LookingatsomeadditionalCardIssuanceTrendsonthenextslide,Iwantto
pinpointorhighlightonthesecondgroupundermeetingthedemandofdata
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breaches.Theveryfirstbulletpoint,morethan600publicallyreportedcarddata
breachesin2013.Now,2013wasanumberofyearsago.Ihighlightthat
particularyearbecause,ifyouthinkabout2013,mostcardholderscouldname
onebreachthathappenedin2013,anditgoesbythenameofTarget.Itwasthe
timeoftheyearthatithappened.Itcertainlywasthefrontpagenewsandthe
leadstoryinallthecableandmainstreamnewsnetworks,buttherewere600
othersofthemthattheydidn’t–thatmostconsumerswouldn’thaveeven
knownabout.
Youwouldbehard-pressed,evenassomeonethatworksatafinancial
institution,thatoutsideofTargettobeabletonameanyadditionaldata
breachesthatoccurredinvolvingdebitand/orcreditcards.ThereasonIbring
thatupistherearecertainlyanumberofdatabreaches,andthosenumbers
continuetohappen.EMVisobviouslygoingtohelpchangethatnumberand
reduceitsignificantly.Whathappenedin2013isEMVswitchedfromanindustry
discussionbetweenthecardassociations,theprocessors,thepersonalization
providers,themanufacturers,themerchantacquirers,theissuers.Itmoved
fromthatindustryintotheconversationwiththeconsumers,sowesawthis
shiftattheendof2013andinto2014thatreallyputpressureandaccelerated
theplansformanyofthefinancialinstitutions.Evenmoresothanthe
mandatoryliabilityshiftthatwasloomingattheendof2015.
Movingon,let’stakealookatsomeadditionaltrendsinissuingEMVcardson
thefollowingslide.Whatweseehereis,inearly2015,thosefinancial
institutionsthatwerestartingtheirproject,thedistributionstrategywasgoing
tobe,okay,we’regoingtotakeourfullcardportfolio,andwe’regoingto
reissueallEMVcards.Theywantedtomakesurethattheygotthecardsoutinto
theirconsumers’handsasquicklyaspossible.Muchofthatwasjustbecausethe
earlyadapterswereprobablystillfeelingthestingfromtheTargetbreachthat
wentoverfrom2013into2014.ThentheHomeDepotbreachthatoccurredlate
inSeptemberof2014,theyweremeeting–theyweretryingtomeeta
consumer’sexpectationofIneedmyEMVcard,andIneeditimmediately.
As2015continuedonandwestartedgettinginto2016,thestrategyfor
distributionshiftedfrommassreissuetoI’mgoingtowaituntilthisactually–
thecardsactuallycometotheirnaturalexpirationdate.Itmaytakemetwoor
threeyearstoactuallydistributeallofmyEMVcards.However,I’mnotgoingto
gooutandputouttheexpenseforthismassdistributionimmediately.We’re
goingtomeetthoseconsumerneeds.Nowwe’relookingatabouta50/50mass
reissueofanexpirationdatestrategywhere50%aredoingitallatonce.The
other50%arejustwaitinguponthoseexpirationdates.
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Thereisnorightorwronganswer.However,forthosefolksthatarewaiting
uponexpirationdate,thatactioniscausingareaction.Thatreactionisonce
cardholdersarestartingtogettheirEMVcards,thoseparticularcardholdersthat
donothaveanEMVcardarewonderingwhentheirsaregoingtocome.Now
you’recreatinganadditionaldemandfor,ifI’maconsumer,IwantmyEMVcard
now.Idon’twanttowaituntilmycardexpiresintwoorthreeyears.HowcanI
meetthatdemandthatIhaveasafinancialinstitution?That’swhereinstant
issuecancomeintoplayandbebothanaffordableandasensiblestrategyto
meetthatnewdemandthat’sbeencreated.
Let’stransitionthenintotheEMVInstantIssue–CardInstantIssueSolution,and
gointothenextslide.Let’stakealookatparticularCard@Once.AsImentioned
iswehavecreatedanewtypeofdemandinthemarket.Simplybysaying,okay,
I’mnotgoingtodistributemycardsimmediatelytoeveryone,butratherwait
untilexpirationdate.HowcanImeetthosedemandsthatareoccurringnow,or
perhapssomeonethatisgoingoverseasortravelingabroadandtheywant–and
theyneedacardwithachipinitinordertoutilizeandhaveaccesstotheir
fundswhentheyareoutsideoftheUnitedStates?
Card@Onceistheinstantissuesolutionthatcanhelpyoumeetthatdemand
andthatneed.Introducedinthemarketalittleoverfouryearsago,itis
relativelynewcomparedtothegranddaddiesofinstantissue.However,itis
completelyunique,anditisthenextgenerationofinstantissuesolutions.
Whateveryouhadlearnedorresearchedaboutinstantissuebeforelookingat
Card@Once,youcaneraseallthat,andyoucannowtakealookatanewway,
anaffordableway,toprovideinstantissuetoyourcardholders.
Someofthekeypointshere.Itdoesn’trequireanysoftware.Thereareno
annualsetupfees.Thereisveryminimaltraining.It’snotadrainonyourinternal
resourcesineitherthesetuportheongoingmanagingofthisprogram.It
becomesanextremelyaffordablehighestCPIcertificationandverysimpleto
use.Throughitall,asaserviceprovider,weprovidethefullsupport.
Nextslide,we’regoingtotakealookattheoverallHarlandClarkecardoffering.
HarlandClarkedeliversanend-to-endsolution.Notonlycanwesupportyouin
yourinstantissuesolution,butifyoudecidetoalsomoveyourServiceBureau,
i.e.,cardsthataredeliveredviathepostalservice,overtoHarlandClarke,we
canprovidebothofthoseservicestoyoueliminatingthenumberofcard
partnersthatyouhaveandsimplifyingyouroverallcardrelationship.Weare
veryuniqueinthatcircumstancewhereweprovidebothinstantissueaswellas
ServiceBureausolutions.
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Thequestionbecomes,goingontoournextslide,it’sarelativelynew
Card@Onceservice,ourinstantissueservice,arepeoplehappywithit?Even
thoughit’sonlybeeninthemarketforashortperiodoftime,it’sbeenmetwith
alotofcustomersatisfaction.Over97%ofourcustomersareverysatisfied–are
satisfiedorverysatisfiedwiththesolutionwith93%ofthemwouldrecommend
ittous.Arelativelynewproduct,however,itworksincrediblywell.Peoplereally
likeit,andnotonlythat,they’rewillingtorecommendittotheirfellowfinancial
institutionspartners.
Thisbringsustothefirstpollquestion,andthisisgoingtobeanothernumbers
game,tryingtobringyouguysbackintothisinformofapoll.Whatwewantyou
todoisI’vegivenyouthreenumbershere,10,25,and2,andI’mgoingtogive
youOptionsAandOptionsBofwhatthis10,25,and2referto.Thenafteryou
haveachanceheretolookatthesetwo,andIwillreadthemofftoyou,we’ll
actuallypullupapoll,andyoucananswereitherColumnAorColumnB.
ColumnA,10equalsthenumberofdaysfordeliveryofmailingacard.TwentyfiveinColumnAisthepercentage.Twenty-fivepercentageincreasedinactive
cardusers.Thenumber2representstwominutesittakestoissueacardwith
Card@Once.ColumnB,10representsthenumberofdatabreachesinthepast
months.Twenty-fiveisthenumberofcardsthatyoucanprintperhourwithin
ourinstantissuesolution,and2representstheaveragenumberofloss/stolen
cardsprintedperday,perFIwithCard@Once.
Takealookat10,25,and2;oneofthoseanswersarecorrect.Jebherewillpull
upthepollforyoutoprovideyouranswer.Thepollisnowopen.Alright,itlooks
likewehavea–itlookslikeeveryoneisguessingColumnA,andyouwouldbe
100%correctasanaudience.Wehaveaveryintuitivegroupamongstustoday.
Whatwe’relookingathereisonaverageittakes10daysfordeliveryofmailing
acard.Instantissuesolvesallthat.Itcanprovidethatcardinstantlyatthetime
thatthecardholderisatyourbranch.
25isthepercentageofincreaseinactivecardusers.Youwillseeanincreaseof
25%.Industryaveragestellusofevery10cardsthatyouputinthepostal
serviceanddelivers,only40%ofthosecardswillbeactuallybecomeactive
users.WhenyouimplementanInstantIssueprogram,youcanseeanincrease
of25%.25%morewillstartusingthecardsoifyou’recurrentlyat40,youcould
beashighas60,65%justbybroadeningyourbaseforactiveusers.We’veeven
seenfinancialinstitutionsthathaverelativelyhighactivationandusagerates
priortoInstantIssuegoevenhigherthanthat.
Alright,somovingonnow,let’stakealookourInstantIssueandtheoverview
ofthat.Thisfirstslide,whichtalksaboutCard@Onceanditcomparesittosome
oftheothersolutionsthatareoutthere.Firstandforemost,whatIwanttotalk
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aboutisCard@OnceandaSoftwareasaService.NowasImentioned,Software
asaServiceoptionhasbeenonthemarketforalittleoverfouryears.What
mostpeoplearefamiliarwithwhentheythinkaboutInstantIssueistheythink
aboutSoftwareforPurchase.Therearesomeverydistinctdifferencesinthere.
AsSoftwareasaService,we’veeliminatedtheneedtopurchaseanysoftware.
Inthepast,SoftwareforPurchaserequireda$50,000to$100,000immediate
investmentjusttopurchasethesoftwaresystem.We’veeliminatedallofthat.
YourinvestmentinourInstantIssuesolutioncomesdowntotheactualprinter
itselfandtheoptionalpurchasingofPINpadsifyouneedthat.Softwareasa
ServiceunderCard@Oncealsoprovidesallofthecommunicationnetworks;the
communicationportal,thecommunicationencryption,thecommunication
security.Everythingissetupandprovidedforyou,sothere’snoneedtodothat.
Setupishandledbyus.Wederequirealittlebitofsupportfromthefinancial
institution,bothOperationsandIT,butit’sveryminimal.Allsystem
maintenance,upgrades,management,monitoring,allofthat,again,ishandled
byCard@Onceand,asasupplier,us.Intheend,thatmeansveryminimalITand
Operationsresourcesneeded.
Incontrast,SoftwareforPurchase,thetraditionalwaytolookatInstantIssue
wastheinitialinvestmentandsoftware,andwetalkedaboutthat.Thenyou
wouldhavetonotonlyuploadandgetthesoftwarerunning,you’llthenhaveto
createthecommunicationnetwork,youhavetodedicateaserverorserver
spacethatcanhandleandprocesstheactualorderitself,you’llhavetohandle
thecardkeysandloadthemintothesystemcorrectly,andthenofcourse,you’ll
wanttolinkeverythingandsetupthecommunicationnetworkbacktothe
actualprintersthemselves.
Inessence,underSoftwareforPurchase,whatyou’recreatingisaminicard
productionfacilityinsideofyourfinancialinstitution.Onceyougetoverthe
initialinvestment,andonceyougetovertheinitialsetup,whichagain,falls
uponthefinancialinstitutionthemselvestodoallofthis,youthenneedtodo
theongoingmaintenance,ongoingsoftwareupdates,andongoingmonitoring
ofthisparticularsystem.
Formostfinancialinstitutions,InstantIssuewasasolutionthatalwaysmade
sensefromacustomerservicesstandpoint.Letmegetmycardintomy
cardholder’shandsimmediately,givethembetterserviceandabettercustomer
experience.However,itwasalwaysverydifficulttojustifytheupfrontexpense
andtheongoingresourcesneededtomaintainsuchasolution.Card@Once,
SoftwareasaSolution,eliminatestheupfrontcosts,theheadaches,thehassles,
andtheamountofresourcesthatyouneedtomaintainit.
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Howdoesitwork?Let’stakealookatthenextslideandwe’llgothroughareal
high-leveloverview.Firstandforemostistheaccountinformationgetsputinto
ourweb-basedplatform.Oncethatinformationisprovidedintothatplatform,
andwe’lltakealookatsomescreenshotsofwhatthatplatformlookslike
cominguphere,wethenencrypttheinformationandit’stransmittedtoour
secureVisaandMastercardfacilityfortransmittingandprocessing.Wewillthen
verifythe16digitaccountnumberthatwassentover.We’llthencalculatethe
CBVandCVCcodes.IfaPINwasselectedwe’llmakesurethatthePINoffsetis
there.Ifthereisarequestforaparticulardesign,thatgetsattached.Allofthat
happenswithinourfacility,onourserver,onourspace.
Wethen,oncewe’redoneprocessingtheorder,weimmediatelyencryptthe
informationagain,senditbacktotheprinteratthebranchwhichrequestedthis
particularcardorder.Theprinteritselfhasaminimicroprocessorwithinitthat
willtakethatencrypteddata,decryptit,andthensendtheencoding
informationtothemagstripeencoderandtheEMVchipencoder,andtheprint
informationtotheprintsideofit,andthenwithinseconds,thatcardactually
printsout.Whatyouhaveisacardthatisfullyfunctioningandwaitingtobe
activated.Oncethatcardisthenactivated,it’sreadytobeused.
Thisprocessofenteringintheinformation,transmitting,andprocessingthe
order,andsendingitbackandprintingittotheprinter,canbedoneinamatter
ofminutes.Itreallyisaninstantdeliverymechanism.Nextwe’regoingtogo
throughsomeoftheslidesofwhatthewebsitelookslike.Thefirstone,asyou
canimagine,isourlandingpage.Ithasadashboardwithdifferent
functionalities.Whatwe’rehighlightinghereisanexperienceofwhatyour
customerservicerepresentativewillexperienceastheyareopeningupanew
account,andthenthey’reputtingtheinformationorthey’rerequestinganew
cardtobeprintedbyCard@Once.
Herethey’rejustselectingthefunctionofbeingabletoprintthecard.Theywill
beabletothenselectthesitenameinwhichtheywantedthecardtobe
printed.Nowwherethisbecomesimportant,inmostcasesyouhaveoneprinter
perlocation.Insomeinstances,youmayhavealocationthatdoesn’thavea
printerbuttheywanttobeabletoprintitatadifferentlocationoradifferent
branch.Youhavetheabilitytodothat,andhereitwouldgiveyoutheoptionto
selectwhichitis.
Thenextscreenwillshowusthetypeofcardinformationthatwearecapturing.
Nowweprovidebothanintegratedandanonintegratedapproachtothis
solution.Inbothcases,whatweprovideisatruncated,16digitaccount
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number.ThefirstsixdigitswillbetheBINnumber.Ifyouareutilizingmultiple
BINswithinourCard@Oncesolution,you’llhaveadropdownscreeninwhich
youcanselecttheBINnumber.Inanonintegratedsolution,yousimplyenterin
theremaining10digitsofthat16digitaccountnumber.Youwillputinthe
expirationdate,thecardholder’sname,andthere’sanextralineofprintingin
casethisisabusinesscard.
Now,Card@Oncedoesnotactuallycreatethe16digitaccountnumber.The
normalprocessthatyou’reutilizingnowtocreateanewcardorder,whetherit
bethroughyourcoreplatformoryourEFTplatform.Whateverplatformhas
yournewcardorderplatform,that’swhereyou’llactuallygetthis16digit
accountnumberaswellastheexpirationdate.Now,ifit’sintegrated,that
informationwillslideintotheCard@Oncesolution.Ifit’snonintegrated,you
justreallyneedtotakeacoupleseconds,enterinthatinformation,andthen
putitintothesite.
Thenextslideiswhereyouhavetheoptionofeitherprovidingapre-printed
cardstyleoryoucouldhavemultipleimagesthatareavailable.Herewe’re
showinganexampleofafinancialinstitutionthathasmultipleimages.Your
cardholdercouldselectfromthepre-setorpre-catalogueoftheseimagesthat
youareproviding.Now,theseimagescanbecustomizedforyourfinancial
institution,andyoucanhaveanunlimitednumberofimagesthatyouwantto
provide.ItcanalsobeveryspecifictotheBINaswell.Onthepreviouspage,we
don’tneedtogobackthere,butonthepreviouspagewhereweselecteda
certainBIN,whenwegotothecardselectionimageitcanthenprovideyou
whatimagesareavailableforthatparticularcard.
Onceyouselecttheimage,wethentransitionintothenextslide,whichisthe
selectionofthePIN.Wereallyprovideoneoftwooptionsthatareavailable.If
youhaveanexistingmethodnowinwhichyouhavePINpadsandyour
cardholdersareallowedtochangeorselecttheirPINsatyourbranches,youcan
morethanlikelyabletokeepthattypeofPINsolutioninplace.However,Iwill
letyouknowthatwithEMV,oneofthemanychangesthatwe’relearning
about,orthatwefoundoutaboutlastyear,isthatnotonlydoesyourcardneed
tochangewithEMV,andyouneedanEMVchiponthere,butyourPINpads
alsoneedtochangeinordertosupportthenewEMVchipaswell.
IfyouhaveoldPINpadtechnology,you’llbeupgradingtoEMVPINpadssoon.
YoumaywanttochoosethesecondoptionthatHarlandClarkeprovidesisan
optionPINpadthatallowsthenewaccountopeningpersontoselecttheirPIN
atthetimeofnewaccountopening.WethenselectthePIN,andatthatpoint
you’regoingtohitthePrintbutton.Here’swhathappens,isthenthisfollows
alongwheretheactualorderwillthenbeencryptedandtravelthroughour
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securedportaltoourprocessingserver,theserverwillprocesstheorder,verify
thatthe16digitaccountnumberisa,runitthroughanalgorithmandverifythat
it’salegitimatecardnumber.Ifthereisaproblemwiththeactualnumberitself,
animmediatenotificationwillbesentbacktotheindividualthatjustenteredin
thatorder,inwhichcasetheycanedit,reviseit,dowhatevertheyneedto,they
candoublecheckit.Oncethecardorderprocessescorrectly,itthengets
shippedtotheactualprinteritself.
That’sanoverviewofhowtheInstantIssuesolutionworks.Let’sgetintosome
additionaldetailsaswelookatwhyCard@Once?Whythisspecificprogram?
HowdoesittieindirectlytoEMVandwhyisthisimportantasanoverall
management?
Asweknow,EMVhasaddedanewlevelofsophisticationanddifficultytoyour
cardprogram.WhatInstantIssueprovidesyou,andCard@Oncespecifically,isa
hassle-free,easiertomaintain,instantissueexperienceinternallyatthe
financialinstitutions.WhatInstantIssueprovidesyoutoyourcardholdersisa
better,moresatisfyingcustomerexperience.Card@OnceisfullyEMVready,
meaningthattheprinterswehavebeenshippingoutanddistributingsincethe
endof2013arefullyreadytohandleyourEMVprogram.
IfyouareanexistingCard@Onceclientofoursandyouarewonderinghow
EMVisgoingtoworkwiththat,asyoustartyourEMVprogramandyougetitup
andrunning,wewouldliketoparticipateinthatsetupprocess.Wecanthen
pushtheEMVprogramingouttothemachinesthemselves,andwecanthen
activatetheEMVreadersandencoderswithintheactualprinters.
IfyouwereaCard@Onceclientthathadprintersdistributedouttoyoupriorto
theendof2013,whatwesimplyneedtodoiswecaneitherretrofityour
existingprinters,yousimplysendthemintousonascheduleandthenwe’ll
retrofitthemwiththeEMVchipencodersandwe’llshipthembacktoyour
branches,orwecould,atasignificantlyreducedcost,sendyoubrandnew
Card@OnceprintersthathavetheEMVchipencodingdetailsaspartofit.
Regardless,it’sreallyuptoyouatthispointonhowyouwanttosetupyour
EMVprogram.
We’refindingthatalotoffinancialinstitutionsreallywanttogetInstantIssue
upandrunningandgetitintotheirbranchesimmediately.However,what
they’realsorealizingisthattheymaystillbefour,five,sixmonthsoutstill
beforetheirEMVprogramcanevenbestarted.Eventhoughalotoffolks
startedtheirEMVprogramin2015,westillhaveanumberoffinancial
institutionsthathavenotstartedorareinqueueandwaitingforit.That’sokay.
WecansetupyourCard@OnceMagneticStripeprogramrightnow,andthen
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whenyou’reEMVprogramisreadytogetstartedorisreadytobe
implemented,wesimplyjustpushtheprogrammingupdatetotheprinters
themselves.
Let’sgoontothenextslidewhichlooksatCard@Oncemonitoring.Yougetthis
programallsetup.Youhavetheweb-basedplatform.You’vegotthe
communicationnetwork.You’vegotyourheart.You’vegotyourserverthat’s
readytoprocesstheorders.You’vegottheprintersconnected.Whetheryou
haveCard@Onceinsoftwareasaserviceoroneoftheotherinstantissue
programs,whichissoftwareforpurchase,monitoringallofyourbranchesand
allofyourprintersisanecessity.Youwanttomakesurethatyourprintersare
availableatthetimeinwhichtheyneedtobemadeavailabletohandlethat
newcardorderaspartofanewaccountingopeningprocess,ormeetingthe
needsofademandingcustomerswhowantsanEMVcardnowbecausethey
don’twanttowaitfortheircardstobedistributedtotheminayearorayear
andahalfwhentheircardexpires,orsomeonethat’stryingtogetalostor
stolencardreplaced.It’simportantthatyou’remonitoringyoursystem.
Card@Oncedoesthisforyou.Thisisanexampleofthemonitoringthatwehave
inplace.EachoneofthesegreendotsshowsaparticularprinterintheUnited
Statesthatisonline.Thereddotsshowandrepresentprintersthatareoffline.
Weknowsimplybyhoveringoverthatparticularreddotisthataplanned
offlineoristhataserviceissuethatneedstobeaddressed.Insomecases,we
canactuallyevenbeproactiveinhelpingyoumakesurethat,“Hey,justletting
youknowyourprinterisoffline.Isthatonpurpose,ordidsomeoneaccidentally
kickthepowercord,ordisconnecttheinternetconnection?Justlettingyou
know.”
It’skindofinteresting,whenCard@Oncefirstcameintothemarket,youcould
tellwhenitwasturning5:00or6:00acrossthecountrybecauseyoustarted
seeinggreenturntoredgoingfromeasttowestas5:00hit,andbanksand
creditunionswereclosingdowntheirbranches.Theywerejustshuttingdown
theirCard@Oncemachine.It’snotnecessarythatyoudothat.It’stotallyupto
you.Youdowanttoconsideryourmonitoringplans,andCard@Onceprovides
thatforyou.
Someotherconsiderationsaswemoveintothenextslide–ifwe’reproviding
theserviceforyou,whatkindofuptimesdowehave?Herewecanshowthat
thereissomeplandowntime,andwhatwehaveisourmonthlytargetforplan
downtimeislessthan30minutespermonth,whichequals0.7%.Year-to-date
actualiscloserto0.2,soweareexceedingordoingmuchbetterthanwhatwe
haveasaplandowntime.Thingsthatyouwanttothinkaboutwhenitcomesto
thisparticularsolutionisdoyouwantaprinterineachoneofyourbranches–
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Card@Oncecertainlymakesitaffordableforyoutoconsiderthat–ordoyou
wantprintersinsomeofyourbranches?Thenthosebranchesthatdonothave
aprintercanstillofferinstantlyissuedcards;itjustrequiresmaybethat
cardholderorsoon-to-becardholdertodrivetoabranchoftheirchoicetopick
thatcardup.
YoualsowanttoconsiderPINpads.WhatisyourexistingPINpadsolution?
DoesitneedtobeupdatedtoEMV?DoyouwanttogowiththeHarlandClarke
solution?ThereareawholehostofVisaandMasterCardsecurityrequirements
thatareneeded.Oneofthemoststandardonesistheinstantissueprinter,
whetheritbeCard@Onceorsomeothersolution,needstobeundercontinual
videosurveillance.
Card@Onceisasmall,quiet,compact,efficientprinter.Becauseitisalaser
printer,itdoesn’ttakeupalotofdeskspace.Becauseit’ssoquiet,itcanbe
placedanywherewithinyourfinancialinstitutionthatalreadyhasvideo
surveillance.Inmanycases,we’reseeingthisbehindthecounternexttothe
tellerline,thatbeingbecausemostfinancialinstitutionsalreadyhavevideo
surveillancesittingthere.Becauseofitsquietness,ascardsareprinted,itwill
notdisruptone-on-oneconversationsthataregoingonbetweenyourmember
serviceoryourtellerandthataccountpersonacrossthetellerplatformfrom
them.Thesize,theloudness,andtheconvenienceoftheprinteralsomakesa
differenceinyourinstantissuesolution,andCard@Onceissmall,compact,and
quiet,andwillallowyoutohavemoreflexibilityonwhereyoucanputit.
Thenextslidetalksalittlebitabouttheprintingoptionsthatinstantissueand
Card@Oncehasavailable.WhenIwasdemonstratingtheplatformonwhich
you’reselectinganimage,whatweshowedyoutherewasourinstantissue
solutionthathasyouusingblankwhitecardstock,andthentheimageofwhat
theindividualdecidesuponisprintedatthetimeoftheaccountinformation
andatthetimethateverythingisbeingputontothecard.Wecallthatour
edge-to-edge,orcolorprint,solution.
Ourothersolutionusesastandardblackribbon,inwhichcaseyouwillbe
utilizingapre-printedcardstock.Wejustsimplyloadthatpre-printedcardstock
inthebackoftheprinter,andthenwhatprintsoutistheaccountinformation,
typicallysomeinformationonthebackofthecardaswell,andthenofcourse
weencodeboththemagneticstripandthechipitself.Asyou’reconsidering
yourinstantissuesolutionandCard@Once,youneedtoconsider,okay,doI
wanttouseanedge-to-edgecolorprintsolutionwhereIcanprovidemultiple
imagesformydebitorcreditcards,ordoIwanttousejustastandardblack
ribbonwhereIjustwanttoutilizeexistingcardstockandrunitthroughthere.
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Nextwe’regoingtotalkalittlebitaboutsecurityandriskcontrol.WhatIreally
wanttohighlightheremorethananythingisthefourthbulletpointdown,
whereCard@OnceisafullyPCI-certifiedsolutionbecausewe’reprovidingevery
singleelementofthis,theweb-basedsolution,theweb-basedportal,the
communicationline,theserver.Allofthoseelementsareprovidedbythe
Card@Oncesolution.Whatwe’reabletodoiswe’reabletogooutandhavean
annualPCIauditonoursolutionandthengothroughand,basedonthe
recommendationsofthataudit,updateanycomponentsthatwehavetoand
thencreateafullyPCI-certifiedsolution.Ittakesbothtimeandmoneyonour
parttodothat;however,wefeelthatit’sfullyworthitbecauseyouaredealing
withsensitivecardsandcardholderinformation,andwewanttomakesurethat
yourauditorsandyourinternalriskfolksfeelverycomfortablewiththat
process.
Now,ourcompetitorswillprovideyouasolutionthatisfullyPCI-compliant,
meaningthateverysingleoneoftheirelementsthatyousetupyourselfare
compliantwiththePCIregulations;however,inordertobefullycertifiedand
PCI-certifiedinmakingsurethatthosecomponentsareup-to-datewiththe
newestPCIcertifications,theonusfallsonthefinancialinstitutiontogooutand
actuallyhavetohandlethatcertification.Onceagain,thedifferencebetween
softwareasaservice,Card@Once,andsoftwareforpurchase,theoldwayof
doinginstantissue,reallycomesdowntowheredoyouwanttheresponsibility
tofallandwhodoyouwanttohavedoingthework,asolutionthatprovidesit
foryouoronethatyouhavetodoyourself.
Let’stalknextalittleaboutintegrationanddoanoverviewofwhatthe
integrationis.Imentionedearlierthatwedoprovidebothanon-integratedand
anintegratedsolution.Jeb,I’mgoingtohaveyoujumpdownonemoreslideif
youwouldn’tmind.Inanintegratedsolution,whatwewillaskyoutodoif
you’reinterestedinCard@Onceandinterestedinbeingpartofanintegrated
solutionthatwemighthavetooffer,isthatweareworkingwithallthevarious
coreandEFTprocessors.Wedohavesomeintegrationsthatarealreadyin
place,sowewillneedtoknowwhoyourexistingrelationshipsaretobeableto
tellyouwhetherthatintegratedsolutionisthere.IfyourcoreprocessororEFT
processorhasawaytoimplementawebservice,that’sbasicallywhatwe’re
lookingatasfarasanintegratedsolution.We’remakingitoffofawebservice
connection.
Ournon-integratedsolutionsimplymeansthatyou’rejusttakingthreesmall
piecesofinformation,yourindividualcardholder’sname,theindividual16-digit
accountnumber,ofwhichonly10digitsactuallyneedtobeentered,andthen
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theexpirationdate.Thosethreesmallpiecesofinformationneedtobeentered
intothesystem,soinamatterofsecondsyoucanfullyenterin.Actually,you
don’tevenhavetotypeit;youcancutandpastetheinformationandputitinto
oursystem,andyouhavealltheinformationyouneed.Whetheryouwanttogo
throughanintegrationprojectoranon-integratedproject,wehaveboth
solutionsthatareavailable.
Iwilltellyou,fromanintegrationstandpoint,whetheryoulookatHarland
Clarkeoryoulookatadifferenttypeofproviderforinstantissue,thereis
oftentimesaprojectthatneedstobeimplementedbytheEFTorcoreprocessor
inorderforthatintegration,eventhoughit’salreadyinplace,toactuallybeset
upforyourfinancialinstitution.Anytime,asmanyofusknow,we’reworking
withanytypeofcompanythathasprocessorinthename,youdoaprojectwith
them,therecouldbecostsassociatedwithit.Asyou’relookingateitheranonintegratedoranintegratedsolution,youwanttomakesureyoutakeinto
accountwhetherthereareadditionalcostsorthereareadditionalprojectsthat
needtobeputinplaceinorderforthatintegrationtooccur.Obviously,ina
software-for-purchasesolution,theonusforthatintegrationofsettingup
oftentimesfallsonyourownITandoperationsfolks.
Lastbutnotleast,we’regoingtotakealookattheclientservicesupportthat
wehaveavailablewithCard@Once.Whatwe’regoingtodoisthere’sgoingto
befull-ontraining.Weprovideauserguide.Thetrainingandinstallationisall
doneremotely.Itisaveryuser-friendlywebsite.It’sextremelyintuitive,butwe
cantrainyouasagroup,wecantrainyouasindividualgroups,whatever.We’ll
justmakesurethatweputtogetherapropertrainingplanforyou.Thereisa
helpdeskthatisavailable24/7foryourfinancialinstitution.
Inmostcases,inasimplecallintoourhelpdesk,the800number,wewillhave
todoaseriesoftroubleshootingstepsbeforewe’reabletogetyourprinters
backonlineandworkingagain.Inthecasethatwe’renotabletogetthatprinter
upandrunningandworkingagain,aspartoftheCard@Oncesolution,wehave
arapidreplacementprogram.Anewprinterwillbeshippedtoyourlocationthe
nextday,andthenyousimplypackuptheoldprinterandshipitbacktous.If
wecannotfindaresolutiontoyourproblemviathesupportdesk,ifit’sbefore
4:00onthedayofbusinesssowecanstillhitFedExandgetitouttoyou,you
willhaveafullyfunctioningprintertheverynextday.
Allright,we’regoingtogointoourlastgameofthedayaswegettowardsthe
endhere.Ijustwanttoremindeveryonethatifyoudohaveaquestion,just
pleaserememberthatthereisachatfunctioninthedashboard,andifyoujust
clickonthechatandyoutypeinyourmessage,youcansendthatchattothe
organizersandpanelistsonlyandthenwewillhandlethosequestionsasweget
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heretotheendofthehour.Allright,onthisparticulargame,I’vegivenyou
threepictures,andwhatIwantyoutodois–I’vegot35mmfilm,I’vegota
horseandbuggy,andI’vegotaclothesline.ThoseT-shirtsthatyouseehanging
thereareactuallyonaclothesline;youcantellbecausethey’vegotclothespins
onthem.WhatIwantyoutodoisIwantyoutothinkaboutwhatdoallthreeof
thesethingshaveincommon,35mmfilm,horseandbuggy,andaclothesline.I
willgiveyouacoupleofmomentsheretothinkaboutthat.
Allright,soatonepoint,allthreeofthesewerethepremierwayof
accomplishingacertaintask.Allthreearestillavailabletoday;however,all
threehavebeenreplacedbyabetter,moreconvenientsolution,verysimilarto
instantissue.Instantissuehasbeeninthemarketfor30+years.Softwarefor
purchasehasbeen,upuntiljustrecently,theonlywaytoimplementtheinstant
issuesolution.Justlike35mmfilm,justlikethehorseandbuggy,justlikethe
clothesline,youcanstillgetaninstantissuesoftware-for-purchasesolutionif
youwant;however,ithasbeenreplacedbythenextgenerationofinstantissue,
andthat’ssoftwareasserviceandthat’stheCard@Once.
Goingontothenextslide,highlightingonceagainwhatmakesCard@Onceso
special,it’sinnovative.Itisthenewwayinordertohandleinstantissue.We’ve
eliminatedtheset-upcosts.We’vereducedsignificantlytheneedforITand
operationsinordertogettheprogramsetup,andwe’vereducedtheir
involvementongoing,monitoringtheprogram.Wesimplifiedthewhole
process.It’sreliable.ThisparticularprinterhasbeenworkinginanEMV
environmentforthepast20+years.Theprinteritselfisactuallymanufactured
outofFranceandhasbeenworkinginmarketsinAfrica,Asia,Europe,and
SouthAmericaforthepast20yearsencodingandutilizingEMVcards.
It’sconvenient.It’snotabigthumpingmachinethatmakesalotofnoiseand
makesitsoundlikeafreighttrainiscomingthrough.It’sgotasmallfootprint;
it’sonly9”x16”.It’sextremelyquiet.Itprovidesyoutonsofflexibilityonwhere
youcanplacethisparticularprinterandnotbedisruptivetoyourday-to-day
accountengagements.Lastbutnotleast,itisfullyPCI-certified.Yes,youcanget
aprogramthatisPCI-compliant,butifyouwanttobefullyPCI-certified,andif
youwanttomakesurethatyourprogramiscertifiedwiththemostrecent
regulationsfromPCIDSS,theonlywayyoucanassurethatistodothework
yourselfortogetaprogramlikeCard@Onceandourinstantissuesolution.
Lastbutnotleast,Iwanttoleaveyouwithacasestudyandshowyouthe
effectivenessofourCard@Oncesolution.Thisisafinancialinstitutionthatwas
headquarteredinIndiana,andthiswasoneofourearlyadaptorstothe
program.Theyinitiallydidatestpilotinafour-branchlocation,anditwasover
athree-monthperiod.Afterthispilot,theythendecidedtoimplement
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Card@Oncein43ofits45branches.Now,theremaybeanumberoffinancial
institutionsthatarelookingat45branches,“Well,I’mnotquitethatbig.”Iwill
tellyouthatweareimplementingCard@Onceandseeingthesesimilarresults
infinancialinstitutionsthathaveone,two,three,fourbranches.Thisisan
extremelyaffordablesolution.
Afterthispresentationandwebinar,ifyouwouldliketofindoutmoreabout
thepricingofCard@Once,simplyreachouttoyourHarlandClarkaccount
executiveandthey’llbeabletoworkupthequoteforyou.Theywillalsobeable
toprovideyouanROIcomparisontowhatyou’recurrentlyspendingonyour
servicebureauprogramandhowCard@Oncecannotonlysaveyoumoney,but
itcanalsoincreaseyourrevenuescomingin.Please,ifyou’reinterestedin
Card@Once,takeadvantageofthat.
Theresultsofthiswasthattheysawtheiractivationratesincreasefrom74%to
89%.Now,they’vealreadystartedwayabovethenationalaverage.Asyou
mightrecall,earlierinthepresentationItalkedaboutanationalaverageof
about40%ofcardsthatgetsentinthemailactuallygetactivated.Whatwesaw
hereistheystartedmuchhigherat74%andtheyhadstillasignificantincrease
ofjustover15%ofactiveusers.Whenyouincreaseyouroverallbaseofactive
users,you’reincreasingyouroverallrevenueopportunityforinterchange,thus
drivingadditionalrevenueintoyourfinancialinstitution.
Fortypercentofthesecardswereusedwithinthefirsteighthours,sothiswasa
programthathadtheactivationsolution,wherethefinancialinstitutionwas
actuallyactivatingthesecardsonbehalfoftheuserwithinaveryshortperiodof
time.Over50%ofthosecardsareusedalmostimmediately,orwithineight
hours.Theaverageusagetimeoncetheywereactivewasin93minutes.Now,
again,thisparticularbulletpointpointsbacktooneoftheoriginalnumbers
gamesthatwetalkedabout.Imaginethat,usingthatcardorhavingitactive
withinthefirsteighthours.Let’sjustspeakconservativelyandsaywithinthe
first24hours,versushavingtowait10daysforthatcardtogetinthemailand
onlyhaving40%to50%ofthemactuallyactivatethecard.We’regettingtothe
cardholderandwe’recreatingabehaviorthatwewantthemtohave
immediatelywithinstantissue.
Whatwasalsosignificantinthisparticularcasestudyisthattheywereableto
reducetheircostsby20%.There’sanumberofwaysthatyoucanreduceyour
cost.Cardsthataredeliveredviaservicebureauneedtogoontoacardcarrier.
Thatmeansthatthey’reinanenvelope.Thatmeansthattheyhavepostage.
There’sanactivationsticker.AllofthesethingsthatImentionedcostmoney.
Envelopescostmoney.Papercardcarrierscostmoney.Stickerscostmoney.
Postagecostsmoney.ThenyouhavethePINthatalsoneedstofollowthecard
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inthemailacoupleofdayslater.That,again,PINmailer,postage,envelope.
Withaninstantissuesolution,you’veeliminatedallthat,soyou’vereduced
yourcostsrightthenandthere.
Anothercostthatisreducedisreplacinglostorstolencards.Inmany
circumstances,thefinancialinstitution,ifacardholdercomesinandsays,“I’ve
lostorstolenmycardandIneedareplacement,”inmanycasestheygivethem
oneoftwooptions.Youcanhaveanewcardsenttoyouviathepostalservice,
anditwilltakeseventotendaysforthatcardtobedelivered,orwecan
overnightyousomethingandexpediteittoyou,inwhichcasethefinancial
institutioncaneitherpickupthecostthemselvesortheycanpassitalongtothe
cardholder.Now,thebest-casescenario,ifI’macardholder,isthatIwantmy
financialinstitutiontoovernightthatcardtome,andIcangetitwithinadayor
two,andIwantthemtopickupthecost.Thatcomestoasignificantcosttothe
financialinstitution.
Theothertwooptions,Icouldpayforthatexpeditedservicemyself,whichI’m
nottoohappyabout,butifI’mgoingoutoftownorI’mnotgoingtobearound
andneedthecardimmediately,I’mprobablywillingtopayforit,butattypically
$40,$50,or$60dollars,I’mnowgettingprettyupsetandit’snotaverygood
customerserviceexperiencewiththeFI,orIhavetowaitseventotendays.If
you’reaheavycarduserlikeIam,Idon’tliketheideathatI’mnotgoingtohave
accesstomyaccountforseventotendays,certainlynotusingitthewayI
wouldnormallyuseit.Reducingyourcostsandbeingabletoprovideinstant
cardreplacementsnotonlyenhancestheoverallcustomerexperience,butcan
alsosignificantlyreducethecosttotheFIitself.Allright,I’mlookingatthis,and
unlessI’mreadingthiswrong,Jeb,itdoesnotlookasthoughwehaveany
questionsatthispoint.
Jeb:
Yeah,Idon’tseeanyonline.Ifyouhaveaquickquestion,ifyou’llpopitintothe
chat,we’llbegladtoanswerit.Otherwise,wecouldcallitawrap,Greg.
Greg:
Yeah,we’lljustseeifanythingcomesinhereinthechatwindowinthenext
minuteortwo.Just,again,asareminder,ifyouareinterestedinlearningmore
aboutinstantissueandCard@Once,whetheryou’resomeonenewtoinstant
issueandyou’dliketoseealivedemoofhowthisworks,you’dliketodiscuss
howmuchthecostsare,oryou’dliketodoanROI,pleasecontactyourHarland
Clarkrepresentative.Ifyou’reanexistingCard@Onceclientandyouarelooking
toupgradeyourprogramfrommagstripetoEMV,pleasereachoutagainto
yourHarlandClarkrep,andtheywillhelpfacilitateandgetyouintoourproject
managementgroup.
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Itdoesnotlooklikethere’sanyquestionscomingin,soI’mgoingtogive
everyonebackfourminutesoftheirday.Notonlyabunchofvalue,butsome
timeback,too,withtoday’swebinar.Iwanttothankeveryoneforyourtime.
Justareminder,thispresentationwillbedistributedouttoeveryonewithinthe
nextweek,aswellastherecordingofthispresentation,soyoucancertainlyfeel
freetosharethiswithanyonewithinyourFI.Withthat,Jeb,thankyoufor
hosting,andthankyou,everyone,forparticipating.Haveagreatafternoon.
Jeb:
Thisconcludestoday’swebcast.Thanksforattending.Pleaseanswerthesurvey
questionsyou’llreceiveattheendofthewebcast.
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