1	The Whys and Wherefores of Chip & PIN A brief explanation of the technology and the operational implications of Chip & PIN
2	Where are we now? The Credit Card industry is being defrauded to the tune of £400million per year Credit Card companies shoulder the burden of the loss Current technology uses the magnetic stripe on the Credit Card
3	What About the Future? Credit Card fraud will increase It is estimated that it will reach £800million per year by end 2004 The losses will reach a level where the Credit Card companies will cease to be able to operate No more credit card sales! How would that affect you?
4	What is the Solution? Obviously something has to be done! Enter technology… In the guise of Chip & PIN This technology aims to Cut the level of fraud drastically Increase card security Give peace of mind
5	So What is Chip & PIN? This is divided into two parts Chip Each credit card will have a microchip embedded on the card – indeed some are already available PIN Personal Identity Number – this allows one to authorise the card’s use This is entered at the point of payment
6	What does the Chip do? The microchip embedded on the card is dynamic It can be read from and written to It is very heavily protected by encryption It is very hard to defraud using this type of card It will allow the Credit card companies to keep going
7	What is the Purpose of the PIN? The PIN enables the card It is more secure because - Only the card user knows it The card never leaves the owner’s possession The payment terminal is shielded to prevent others accessing information The card cannot be copied as Magnetic Stripe cards can, and even if it could – the PIN would not be available If the card is stolen, it cannot be used without the PIN
8	How does it Work? The card reader is customer facing It is attached to the PoS by shielded cable The sale is rung up and the terminal given to the customer
9	How does it Work? The customer inserts the card The unit then gives instructions to follow
10	How does it Work? The customer then inputs the PIN If everything is all right – the sale is completed If there is a problem – the customer is notified by the unit
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12	What are the Benefits? So far we’ve talked about the benefits to the Credit Card companies – what are the benefits to the retailer? The banks are offering a small reduction in acquirer fees The retailer will be shielded from any fraud Come 1^st January 2005, the retailer will be responsible for any fraud if they are not Chip & PIN compliant!
13	Responsible for Fraud? Currently if someone uses a stolen card, the bank carries that debt – the retailer still gets paid From 1^st January 2005, any fraud will be charged back to the retailer if they are not Chip & PIN compliant Remember – card fraud will be running at £800million pounds per year by then!
14	Responsible for Fraud? The fraudsters will review their tactics in the light of this They will target those retailers who are not Chip & PIN compliant The fraud will migrate to those still only able to accept magnetic stripe cards, and they will have to accept the loss!
15	Points to Note Is your current system Chip & PIN compliant? If not, are there any plans to make it so? Bear in mind that it took BCP 3 months to develop the software and a further 3 months to get accreditation from the banks BCP were one of the first in the queue – the time required for accreditation is now significantly longer, and will get longer still as more companies apply – some people are going to miss the boat!
16	Points to Note Is your PoS hardware capable of taking Chip & PIN cards? Remember that Chip & PIN needs a terminal to make it work – can your current supplier assure you that they have one that is compliant? BCP already have done this work and have the solutions Can your current supplier say the same?
17	What can BCP Offer? BCP can offer – A Chip & PIN solution as an integral part of their PoS software package A standalone Chip & PIN solution Advice on the requirements of Chip & PIN
18	Come On In Have a look around our website www.bcpsoftware.com Check out the software offerings Look at the customer profiles Remember – these customers will be Chip & PIN compliant by the end of 2003 Will you be Chip & PIN compliant by then? If you have any questions – please contact us – we’ll be happy to help
19	How to Contact Us Telephone : 0161 355 3000 Ask for Retail Sales Fax : 0161 355 3001 E-mail : Retail@BCPSoftware.com