Towards Transparency How card technology fosters sound economical market conditions Mag. Robert Kajic
Agenda � � From Cash to Cards � � The Role of the Card Associations and public Regulators � � Technology and Business Rationale � � Why Chip � � Why Lykos 2 6/11/09
The role of the payment card associations in payment systems � � A common competence center for � � Card issuance � � Card acquiring � � Product development and approval � � Interoperability � � New technologies � � Handles legal aspects � � Ensures trust and security � � Organizes marketing and advertising 3 6/11/09
Why Chip ? � � Fraud reduction � � Reduce transaction processing costs � � Replace online transactions by offline transactions � � New technology � � Mag-stripe technology is outdated (more than 35 years) 4 6/11/09
Why Chip ? � � Counterfeit fraud: � � Illegally printed, embossed or encoded cards � � MOTO transactions � � Mail Order/Telephone Orders with illegally obtained card numbers � � Lost or stolen cards � � Mail non-receipt fraud � � Cards stolen during card mailing � � Application fraud � � Fake ID when opening a card account � � ATM fraud � � Eavesdropping of PIN numbers 5 6/11/09
Why Chip ? � � The chip is a secure medium, which cannot be � � Copied � � Read out (in certain data area) � � Triggered to perform/confirm unauthorized transactions � � The chip in regular circumstances can authorise payment transactions in an off- line regime. This is similar to an “embossing transaction” with maintenance of card risk management � � Therefore the chip is suitable for reducing fraud at all 6 6/11/09
Why Chip ? � � Counterfeit fraud � � Far more advanced Card Authentication Method (CAM) � � Lost, stolen or never received cards � � Issuer control at POS � � First transaction on-line � � Reduce credit risk and losses � � Limit offline credit & cardholder repudiation � � Smart card technology uses highly sophisticated processing to identify the cardholder 7 6/11/09
Why Chip ? � � Reduce of counterfeit loss 100 � � � Efficient Card Authentication (=CAM Method) � � Reduces fraud on lost, stolen and never received cards � � Offline PIN 30 � � � First transaction on-line for card- activation � � Reduces transaction processing costs Reduced � � Migration from online towards Costs Ahead offline authorisation � � Maintenance of credit risk and losses � � Card risk management 8 6/11/09
Why Chip ? � � Broader acceptance and cross- sector usage � � Internet banking application � � Shorter transaction time � � Wider acceptance network � � Business enabler � � Customer loyalty programs � � Co-Branding platform Increased Convenience Ahead Business Ahead 9 6/11/09
The Lykos Group Inform P. Lykos Austrian National Bank Athens Vienna www.lykos.gr www.oenb.at 85% 15% LPS S.A. Inform Lykos Romania Austria Card Lykos Paperless Solutions Bucharest Vienna www.austriacard.at 30% 30% Technovisie N.V. @RROWUP N.V. Belgium Belgium www.technovisie.be www.arrowup.be 10 6/11/09
At a glance Employees 1.150 Headquarter Koropi/Athens Production Plants and 6 Corporate Offices Koropi / Athens 11.000 m � Bucharest 15.000 m � Vienna 5.000 m � Regional Offices 3 Istanbul Warszawa Zagreb 11 6/11/09
The Lykos Group Premises Athens/Koropi plant 11.000 m � Athens Bucharest plant 15.000 m � Bucharest Austria Card 5.000 m � Vienna 12 6/11/09
Inform P. Lykos Romania Key Facts Inform P. Lykos � � Inform Lykos, founded in 2001 � � 65 employees � � Market leading company in Romania in the Soseaua Odai, no. 347-363 field of: Bucharest – Sector 1 T +40 21 408 45 00 � � Business Forms and Security Document F +40 21 408 46 00 E info@lykos.ro printing � � Billing & Statement Printing � � Pre-Paid Card production � � Business Process Outsourcing � � Electronic Bill Presentment and Print Management services � � Card personalisation and services 13 6/11/09
Inform P. Lykos The largest card service organization in Romania Certifications Service Range Card Personalisation � � Inline carrier personalisation (black/white) � � 4 card Input hopper � � Magstripe HiCo, Loco Capacity > 3 Mio cards / year � � Chip T=0, T=1 60.000 cards / week � � Indent 12.000 cards / day � � Embossing � � Color / Monochrome Thermotransfer 12 Employees � � Up to four inserts 3 shifts operation 5 days / week Equipment 2 Datacard 9000 / Service Range PIN Production Chip enabled ~2.000 Carbon PIN Mailers per day References Magstripe Card Issuance SDA EMV Chip Card Issuance 14 6/11/09
Mul � umesc - ��������� - Thank You – Danke
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