Chip Card Orientation Guide

Transcription

1 Chip Card Orientation Guide An Introduction to chip card transition process Prepared For: Smith College Date: December 17,

2 This presentation was prepared exclusively for the benefit and internal use of the J.P. Morgan Chase client to whom it is directly addressed and delivered (including such client s subsidiaries, the Company ) in order to assist the Company in evaluating, on a preliminary basis, certain products or services that may be provided by J.P. Morgan Chase. This presentation contains information which is confidential and proprietary to J.P. Morgan Chase, which may only be used in order to evaluate the products and services described herein and may not be disclosed to any other person. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us by or on behalf of the Company or which was otherwise reviewed by us. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan Chase. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of J.P. Morgan Chase. J.P. Morgan Chase makes no representations as to the legal, regulatory, tax or accounting implications of the matters referred to in this presentation. Notwithstanding anything in this presentation to the contrary, the statements in this presentation are not intended to be legally binding. Any products, services, terms or other matters described in this presentation (other than in respect of confidentiality) are subject to the terms of separate legally binding documentation and/or are subject to change without notice. Neither J.P. Morgan Chase, nor any of its directors, officers, employees or agents shall incur any responsibility or liability whatsoever to the Company or any other party in respect of the contents of this presentation or any matters referred to in, or discussed as a result of, this document. J.P. Morgan Chase is a marketing name for certain businesses of JPMorgan Chase Bank & Co. and its subsidiaries worldwide JPMorgan Chase & Co. All rights reserved. Confidential and proprietary materials for authorized J.P. Morgan Chase & Co. personnel and outside agencies only. Use disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 2

3 Today s Discussion Payment industry trends and chip card basics Our approach to chip card Chip card issuance process and program implications Next steps validation of participation Q&A 3

4 Payment Industry Trends and Chip Card Basics 4

5 Trends towards Chip Technology Evolving Payment Landscape The evolving landscape has driven the need for enhanced payment technologies, such as chip cards Credit Card Fraud Card skimming Counterfeiting Account Information Security Protecting personal information Contain an embedded microchip, which has the capacity to store information securely* Improves security for payments at chip terminals* Features to help reduce counterfeit fraud* Acceptance Issues New technology adoption Source: EVMco, A Guide to EMV Chip Technology, V 2.0 November 2014 Promotes broader acceptance and flexibility* Cardholders who travel internationally are able to use chip cards at more locations* 5

6 Trends towards Chip Technology Chip technology is the standard in many locations outside the U.S. Today, there are over 2 billion active chip cards with access to over 35 million chip terminals In many countries, majority of terminals are chip: Europe - 99% of terminals Canada, Latin America, the Caribbean, Africa and Middle East - 85% Across Asia Pacific - 72% U.S. transition to Chip technology is starting to take shape: October 1, 2015 Liability Shift Networks are promoting an industry shift to chip technology, specifically the October 2015 liability shift. Gives merchants incentive to switch to chip technology by providing fraud relief for chip transactions; however, this is not a mandate. Forecasting suggests that less than 50 percent of U.S. merchant terminals (excluding gas pumps) will be chipenabled by the end of Source: EVMco, A Guide to EMV Chip Technology, V 2.0 November

7 How Chip Cards Work Enhanced Data Security* Payment Method Insert Card Networks Sign or enter your PIN APPROVED Issuers Payment Systems * Enhanced Data Security: The chip generates dynamic data for every transaction; a unique one-time code that can not be replicated. 7

8 Our Approach to Chip Cards Visit jpmorgan.com/visit/commercial/chipcard for reference materials that further explain chip card benefits and usage. 8

9 Cardholder Experience: First Steps Activation: Call the number on the activation label upon receipt of card Follow the prompts to activate card and set a four-digit PIN PIN Management: All PIN management is done via automated telephone system, cardholders will not receive an assigned PIN in the mail; they will customize a PIN. To re-set a PIN, call the number on the back of the card and follow the prompts If a cardholder already has a PIN for other card, that will be the PIN for chip purchases as well (i.e. only one PIN for chip and ATM transactions) First Chip Purchases: IMPORTANT After the card is activated and the PIN is set, cardholders will still need to make a few chip purchases at a chip reader that is connected to other systems (i.e. online) in order to sync the PIN to the card for future purchases that will require the PIN. In order to do this, we recommend cardholders complete their first two chip transactions where an attendant is available, as these chip readers typically have the needed connectivity. If a cardholder chooses to go to a self-service terminal for a first chip transaction (i.e. PIN has not been synced yet, as recommended above), they may be prompted to enter their PIN several times. There is a current mandate from the Networks to move these locations to no Card Verification Method minimizing negative experience. 9

10 Cardholder Experience: Point-of-Sale Our chip card is built to promote broad acceptance*, leveraging both signature and PIN authorization methods Three methods: 1 Swipe With Signature 2 Chip With Signature 3 Chip With PIN (or no CVM) Additionally, phone and Internet transactions will work the same way they do today *Source: EVMco, A Guide to EMV Chip Technology, V 2.0 November

11 Chip Card Issuance Process and Program Implications 11

12 Transitioning to Chip Card Orientation and Validating your Participation Kick off and Preparations Card Issuance and Experience Assessment Activities Review chip card benefits/usage Discuss requirements and your interest to move forward Make critical program decisions regarding your transition 1) Chip Card Plastics 2) Card Issuance & Delivery 3) Cardholder Communications and Information Validation Reconfirm critical decisions for executing your program transition Prepare and distribute cardholder communications As necessary, work to update cardholder information and validate data accuracy Send targeted cardholder account list for processing (if applicable) Begin chip card issuance to cardholders with agreed strategy Cardholders activate, set a PIN and use the new cards for purchases Target Timing* Finalize schedule December for your transition December-February March-May * Modifications to recommended timing will require approval 12

13 Topic 1: Chip Card Requirements Plastics/BINs Chip Plastics and Materials Please note that the following are not supported for Chip Card CA: Fleet Plastics / functionality Chip Plastics for ghost accounts (cards not intended for Point-of-Sale purchases) Customized Card Materials (i.e. insert, label, statement messaging) Declining Balance Cards Note that these can be force reissued to chip cards if desired (but not recommended); expiration dates would be extended out 2-3 years as per standard transition requirements 13

14 Topic 2: Card Issuance Process Card Issuance Process Card Delivery Validation Forced Issuance: Force reissue all cards with chip cards during one targeted month ahead of their existing expiration dates. Expiration date changes: month will stay the same, year will be extended. Magnetic stripe cards will be deactivated approximately 30 days after chip card issuance (or on their natural expiration date); there is no deadline for activation of new chip card. Forced issuance aligns with our broader chip card roll out strategy in 2016; consider implications as need be. Critical to validate delivery for all chip cards and update special handling codes if needed. Direct delivery to cardholder: Cardholder contact information will need to be updated systemically to ensure accurate and timely delivery of cards. Bulk delivery: Cards sent to one address for subsequent distribution. If cards are force reissued, high volumes may challenge this option. Please note: Account List: Your Program Coordinator will work with you to facilitate account list processing. We will need to validate the company number and issuance strategy with you (client) in order to make the manual adjustments to the program/accounts. Interim Cards: Replacement cards or new accounts issued between orientation and before the official launch of chip issuance for your program (i.e. targeted month), may vary as magnetic stripe or chip cards. Once your organization has passed through final set-up, subsequent cards will all be issued as chip cards; all timing can be confirmed with your program coordinator. 14

15 Topic 3: Cardholder Information Validation and Communications Cardholder Information Validation Opportunity Communication Templates Templates (to right) are created to help you with this process. Updates to cardholder information need to be delivered in the account list provided. Ensure all cardholders have valid information in their authenticating fields (security identifiers) so that the automated system and customer service can easily identify them. Educate your cardholders on the activation process and what security identifiers your organization uses. Where possible, leverage platform functionality for required updates. templates are available to assist you with sharing information with your cardholders: 1 Welcome: Inform your cardholders that new chip cards will be issued to them. 2 Update Cardholder Information: Direct your cardholders to your internal systems to update their addresses, which will ensure card delivery to the correct location. 3 Security identifiers: Educate your cardholders on your organization s cardholder security identifiers that are used to verify identity in automated telephone systems and to a customer service representative 15

16 Let s Review and Validate Your Participation Program Component Program Implications and Decisions 1 Chip Card Requirements (i.e. Chip Plastics / BIN / Materials) 2 Chip Card Issuance Option, Timing and Delivery 3 Cardholder Information Validation and Communications 16

17 Next Steps 17

18 Next Steps Customize and 11. Review chip card 1. Confirm you would like resources from this site to transition to chip (including the FAQ): cards and agree to chip jpmorgan.com/visit/com card issuance plan, key mercial/chipcard decisions, and timelines distribute cardholder communications 4 1. Prepare for transition via program updates and cardholder information validation 5 1 Validate issuance instructions with program coordinator and prepare for issuance (send account list if applicable) We are here to assist you and provide you with support along the way 18

19 Helping you make the Transition Your relationship resource: Continued contact for ongoing program questions or needs Your program coordinator: Day-to-day contact to coordinate activities with your transition, as well as, our operational resources Roles Smith College Relationship Resource Peri Kramer Program Coordinator Dan Marshall Responsibilities Make transition decisions Provide organizational requirements Align internal resources Support project management, i.e. data review and submission of account list for conversion (if applicable) Send cardholder communications Manage transition scheduling Ongoing contact for overall program and relationship Guide and support program decisions Help manage issue escalation Day-to-day contact for transition activities Host meetings to manage project plan, address issues and secure decisions Capture and document requirements Account list processing Liaise as needed with internal bank operational resources 19

20 Discussion and Questions? Q&A 20