TSYS FRAUD MANAGEMENT SOLUTIONS

Solutions Overview TSYS FRAUD MANAGEMENT SOLUTIONS Minimise costs associated with fraud and risk Protect customers trust and loyalty Improve customer service A Fully Integrated Real-Time End-to-End Solution Dedicated to Reducing Your Losses to Fraud

t s y s frau d m a n ag e m e n t so lut i o ns In today s risk-driven environment, it s imperative for financial institutions to be proactive when it comes to fraud and risk management. Companies are always looking for ways to reduce their risk, mitigate fraud, and improve collections. Partnering with the best in the industry, TSYS provides the tools required to minimise costs associated with fraud and risk. Most payment card fraud now occurs on an international scale, and is perpetrated by well funded, technically proficient and organised criminal gangs. The fraud they perpetrate affects the entire industry banks, networks and processors. At TSYS, we take fraud extremely seriously and continually invest in our products and solutions to combat the everevolving practices. Recent card fraud figures reveal that annual payment card fraud increased by 21 percent across Europe in 2010, with losses totalling more than 1 billion. In order to combat this increase, a number of industry-wide standards have been implemented, including ICC/EMV Chip and PIN, which has been successful in combating lost, stolen and counterfeit fraud, as well as 3D-Secure to help combat e-commerce fraud. The importance of effective fraud management is underscored by the fact that once the true costs of fraud including administrative overheads, the cost of systems, fraud prevention personnel, disputes and chargebacks are factored in, it is estimated to be around 2.5 times the gross w w w. tsys. com amount lost. Additionally, financial institutions can suffer a level of reputational damage that dissuades current and prospective customers from using their cards, and threatens customer retention and opportunities for cross-selling to cardholders. These losses can be further compounded by financial penalties imposed by payment schemes or regulatory bodies. Comprehensive and Integrated Solutions TSYS Fraud Management solutions combine leading TSYS systems with world-class thirdparty solutions to provide a fully integrated end-to-end solution designed to reduce your losses to fraud. TSYS approach is based on a thorough understanding of the nature of fraudulent activity that uses five key processes as part of a comprehensive fraud management cycle. Underpinning the fraud management cycle is a realisation that an effective fraud strategy must focus on each stage in the card account lifecycle overseeing the creation of the

TSYS Fraud Management Solutions Solutions Overview Since converting to TSYS, permanent tsb has been able to develop comprehensive fraud strategies, which have allowed us to very effectively and proactively monitor and reduce card fraud. TSYS fraud tools have enabled us to dramatically reduce our fraud exposure. Deirdre Fay, Manager, Financial Crime Prevention Unit, permanent tsb Today s fraudsters are professionally organised, well funded, technically proficient and likely to be part of an international criminal fraternity. With the increasingly technical sophistication of fraud attacks, advanced social engineering and malware techniques resulting in large-scale account data compromises, payment card fraud remains a significant threat to the payments industry. account, monitoring transactions in progress and after completion, analysing transaction reporting, and examining chargebacks and recovery. TSYS employs multiple systems to control fraud on a number of levels. Some systems help you manage customer reported stolen or lost cards, including blocking authorisations, creating new accounts and issuing replacement cards. Other processes monitor transactions as they are taking place and facilitate realtime alerts to cardholders of suspicious activity. To deliver this holistic multi-point strategy, TSYS deploys a range of scalable, customisable fraud systems that provide an easily-implemented solution for every type of card program and budget. The TSYS Fraud Management Suite At every step of the account lifecycle, from initial credit evaluation to customer service, TSYS offer a suite of fully integrated prevention, detection and management solutions that enable payment card issuers to effectively manage portfolio risk and protect against fraud. These innovative, leading-edge solutions draw on the experience of a world-class international fraud operations and strategy team for customisable deployments. TSYS global processing footprint ensures that client systems can be quickly adapted to take account of the latest fraud threats. TSYS CardGuard SM The core of TSYS fraud detection system Blend customised rules, behavioural scoring and neural technologies Use the power of the system to build your own rules and strategies Intuitive rule building no programming knowledge required More than 99 master file data elements available for decisioning Requeue feature allowing previous authorisation analysis on current rule Online champion/challenger tool priority projection Complete workflow case management Full suite of standard reports including rule, priority and operator performance

TSYS Fraud Management Solutions Solutions Overview TSYS Authorisation Decision Strategy SM I (ADS I) Enables real-time decisioning at the authorisation level based on criteria associated with the authorisation Fraud authorisation rules only Fully customisable for your portfolio TSYS Authorisation Decision Strategy SM II (ADS II) The functionality of ADS I but also including: Real-time scoring and prior authorisation criteria Intuitive rule building no programming knowledge required Online champion challenger tool priority projection Customisable transaction filter selections Flexible priority filters FICO TM Falcon Fraud Manager and Fraud Predictor FICO TM Fraud Predictor-powered neural detection system Fully integrated within CardGuard, ADS I and ADS II Performs detection based on an unparalleled pool of global transaction data Scores transactions for fraud in real time Includes patented profiling technology that learns cardholder and device behaviour patterns Merchant profiling to identify highrisk transactions TSYS CardGuard Determinator SM Determinator is a TSYS decisioning tool used when there is a need for client-specific processing. It creates the ability to introduce new behaviour into the system without requiring a project, and eliminates the need for expensive and time consuming clientspecific hardcode changes to CardGuard, putting decisioning under the clients control. Determinator is used across a number of TSYS applications, including: ACE, Collections, Scores Databases, Messaging services, and CardGuard/ADS. CardGuard historically allows rules and strategies to be written on 75 unique fields. With Determinator in play, the number of fields increases to 730 adding significantly new flexibility and control over the rules within CardGuard making available every field on all records used within CardGuard (Account, Address, Customer, Authorisation, Authorisation History (including nonmonetary), Statement, Memory Variables, CardPrint and current Rule Fields). CardGuard uses a 13-week history for decisioning that rolls off after the 13-week period. Determinator adds capability of capturing information about an authorisation or other data into a card-level user area that will not roll off in 13-weeks, adding even more flexibility and capability to the decisioning processes. Determinator consists of two primary components: 1. A GUI desktop application for writing and managing scripts, and 2. A runtime engine that is integrated into the TSYS application Adaptive 3D-Secure Fraud protection for e-commerce transactions Fully compliant with MasterCard SecureCode TM and Verified by Visa Adaptive, risk-based authentication technology offering multi-component risk assessment Customisable rules engine enabling configuration to match business practices and risk tolerances SMS Alerts Alert customers within seconds of a possible fraudulent transaction. Allow cardholders to block and unblock their cards in real time directly from their mobile phone simply by texting key words Direct from TSYS systems to the cardholders mobile phone Reduce number of fraud cases referred to agents Lower declines increase spending Peace of mind for your cardholders Together, TSYS Fraud Management Solutions address fraud holistically, across all channels and through all threat points. We believe they support the framework for zero tolerance to fraud. In addition, TSYS offers a further range of intelligent information solutions to help maximise your growth and revenue by minimising fraud and risk. These comprise the following: TSYS Analytics SM to retrieve data on fraud, transaction, authorisations and cardholder account-level history TSYS Customer Insight SM a call centre workflow-management GUI that enables automatic blocking and replacement of lost and stolen cards

TSYS Fraud Management Lifecycle PREVENT PREVENT: Strategic planning and system setup to prevent fraud from taking place DETECT: Using systems to detect fraudulent transactions and stop them as they take place ANALYSE REPORT INVESTIGATE DETECT INVESTIGATE: Investigate all cases of detected and reported fraud to gain understanding of how and where the fraud was perpetrated. REPORT: Report on all fraudulent transactions in detail to allow for analysis and trending ANALYSE: Analyse all fraudulent transaction data to understand patterns and trends, and use the insight to build prevention strategies Credit Care SM and CentreSuite online account servicing and management products that provide a cardholder self-service suite with account alert notifications FICO TRIAD Customer Managerand ProbeSM combining behavioural scoring with sophisticated segmentation and analysis facilities to give you the ability to gain a deeper and richer understanding of your customers and the significant events that help identify and manage your cardholders needs Fighting Fraud TSYS Managed Services offers end-to-end customer service, collections, sales and back-office processes, including dispute, chargeback and complete fraud operations and management providing support for more than 30 million cardholders globally. In 2009, TSYS saved clients more than 250 million in avoided fraud losses, with clients realising around 35 to 40 percent lower fraud losses than the industry average. When it comes to handling your critical risk related needs, TSYS is dedicated to providing the highest level of support available in the industry. Our team consists of accomplished, industry experts who will work with you through a variety of tailored program offerings. From collections and recovery to disputes and fraud, TSYS Managed Services provides you with world-class support to help you aggressively manage risk. We use the latest technology to maximise productivity and mitigate the expense of managing your risk portfolio. TSYS Managed Services offers full-service fraud monitoring and investigation with systems and tools designed to detect and prevent fraudulent account activity. Our fraud investigators can contact the cardholder directly, and if the fraud is verified, immediate action can be taken to block the account. In addition, automated processes within our system can facilitate the transfer of account history and transactions.

TSYS Fraud Management Solutions Solutions Overview TSYS Fraud Management Key Features: Comprehensive end-to-end fraud solution True, real-time decisioning of transactions based on individual client-defined and regional rules Best-in-class platforms and detection systems that operate in real time Full authorisation, dispute, chargeback and collections management services Innovative, leading-edge solutions with continual investment and enhancement World-class, internationally-based fraud operations and strategy team Global client base ensures latest fraud intelligence and fast response to new trends Advanced analytics and business intelligence to help deliver data-driven risk analyses Fraud prevention strategy planning and support via client best practice guides and consultancy Key Benefits: Maximise growth and revenue by minimising costs associated with fraud and risk Protect customers trust and loyalty through enhanced security, leaving them confident that their cards are continuously monitored for suspicious transactions Preserve profitability by preventing attrition Encourage increased card usage Quickly resolve cases and reduce chargebacks by identifying potential fraud, leading to lower net fraud losses Reduced operational costs through the use of our experts, leaving you to concentrate on your core business Improved customer service

exp e rie n ce yo u ca n co un t o n TSYS is one of the world s largest companies for outsourced payment services, offering a broad range of issuer- and acquirer-processing technologies that support consumer-finance, credit, debit, healthcare, loyalty and prepaid services for financial institutions and retail companies in the Americas, EMEA and Asia-Pacific regions. TSYS Fraud Management Solutions for Nationwide Building Society In August 2007, the largest building society in the world announced a multi-year contract with TSYS to provide full processing and fraud management solutions along with a fully integrated managed service offering across their credit card business, including the building of a customised 300-seat contact centre site in Coventry, UK, that went live in March 2008. Pete Corrie, Head of Financial Crime said, Nationwide places great importance on finding new ways to further improve the service we can provide to our customers. By joining forces with TSYS we are able to offer enhanced products and processes while providing greater member value through annual cost savings. The level of fraud prevention has significantly improved following Nationwide s migration to TSYS. The false/ positive ratio on fraud declines was less than 8:1 which meant that the lower fraud level has been achieved, without negatively affecting customer experience. This is an outstanding achievement in reducing bottom line losses as well as improving cardholder security. In order to achieve these spectacular results, Nationwide has deployed a range of TSYS fraud management solutions, including, TSYS CardGuard, Secure Card Delivery, FAST (Fraud Authorisation Strategy Tables), RTD (Real Time Decisioning), ADS I and ADS II, and FICO Falcon Fraud Predictor with Merchant Profiles. All of these are supported by TSYS Management Information Systems and TSYS Analytics data warehousing functionalities. Nationwide now reports the lowest levels of fraud losses within their peer group, as well as the lowest of the high street financial service organisations. Nationwide has reduced their loss per card by two-thirds from August 2008 to July 2010. Nationwide Building Society continue to work to reduce their levels of fraud, protecting their members and cardholders, whilst at the same time ensuring the highest possible levels of customer service, expectation and experience. ACHIEVEMENTS AT THE CARD & PAYMENTS AWARDS 2011 Winner Most Responsible Credit Card Lending Practices 2011 Finalist Best Security or Anti Fraud Development 2010 Winner Most Responsible Credit Card Lending Practices 2010 Winner Best Achievement in Customer Service 2009 Winner Most Responsible Credit Card Lending Practices 2008 Winner Most Responsible Credit Card Lending Practices 2008 Finalist Best Online Initiative www.t s ys. com

Fulford Moor House York YO10 4EY United Kingdom sales@tsys.com + 44 (0) 1904 562 000 About TSYS TSYS (NYSE: TSS) is reshaping a new era in digital commerce, connecting consumers, merchants, financial institutions, businesses and governments. Through unmatched customer service and industry insight, TSYS creates a better experience for buyers and sellers globally, supporting cross-border payments in more than 85 countries. Offering services in credit, debit, prepaid, mobile, chip, healthcare, installments, money transfer and more, TSYS makes it possible for those in the global marketplace to conduct safe and secure payment transactions with trust and convenience. TSYS global headquarters are located in Columbus, Georgia, with other local offices spread across the Americas, EMEA and Asia-Pacific. TSYS serves approximately 400 clients in 85 countries, including relationships with more than half of the Top 20 international banks. The people of TSYS are respected around the world for the spirit of true partnership they invest in every relationship and business decision. By the passion they bring to the world of payments, the people of TSYS are known as good people to do business with. Get to know us at tsys.com, or contact us at or contact us at sales@tsys.com or +44 (0) 1904 562 000 to learn more about how we can serve as the trusted partner in your payment strategies. 2011 Total System Services, Inc.. All rights reserved worldwide. Total System Services, Inc., and TSYS are federally registered service marks of Total System Services, Inc., in the United States. Total System Services, Inc., and its affiliates own a number of service marks that are registered in the United States and in other countries. All other products and company names are trademarks of their respective companies. (03/11)