Towards Transparency How card technology fosters sound economical - - PowerPoint PPT Presentation
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
How card technology fosters sound economical market conditions
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From Cash to Cards
The Role of the Card Associations and public Regulators
Technology and Business Rationale
Why Chip Why Lykos
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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
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Fraud reduction Reduce transaction processing costs
Replace online transactions by offline transactions
New technology
Mag-stripe technology is outdated (more than 35 years)
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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
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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
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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
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Reduce of counterfeit loss
Efficient Card Authentication (=CAM Method)
Reduces fraud on lost, stolen and never received cards
Offline PIN First transaction on-line for card- activation
Reduces transaction processing costs
Migration from online towards
Maintenance of credit risk and losses
Card risk management
Reduced Costs Ahead
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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
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85% 15%
www.lykos.gr
Inform P. Lykos
www.oenb.at
Austrian National Bank
30% 30% Vienna Athens LPS S.A.
Lykos Paperless Solutions
Inform Lykos Romania
Bucharest
www.austriacard.at
Austria Card
Vienna
www.technovisie.be
Technovisie N.V.
Belgium
www.arrowup.be
@RROWUP N.V.
Belgium
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Employees 1.150 Headquarter Koropi/Athens Production Plants and Corporate Offices 6
Koropi / Athens Bucharest Vienna 11.000 m 15.000 m 5.000 m
Regional Offices 3
Istanbul Warszawa Zagreb
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Athens/Koropi plant Bucharest plant Austria Card 11.000 m 15.000 m 5.000 m Athens Bucharest Vienna
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Key Facts Inform P. Lykos Inform Lykos, founded in 2001 65 employees Market leading company in Romania in the field of: Business Forms and Security Document printing Billing & Statement Printing Pre-Paid Card production Business Process Outsourcing Electronic Bill Presentment and Print Management services Card personalisation and services
Soseaua Odai, no. 347-363 Bucharest – Sector 1 T +40 21 408 45 00 F +40 21 408 46 00 E info@lykos.ro
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Certifications > 3 Mio cards / year 60.000 cards / week 12.000 cards / day Capacity Employees 12 3 shifts operation 5 days / week Equipment 2 Datacard 9000 / Chip enabled References Service Range Card Personalisation Inline carrier personalisation (black/white) 4 card Input hopper Magstripe HiCo, Loco Chip T=0, T=1 Indent Embossing Color / Monochrome Thermotransfer Up to four inserts Service Range PIN Production ~2.000 Carbon PIN Mailers per day Magstripe Card Issuance SDA EMV Chip Card Issuance