The Evolution of Payment Security. Since the inception of the payments industry, Visa has been a leader in security. As technology has advanced, Visa’s innovations have kept pace, helping Biometrics Tokenization to steadily reduce fraud rates despite a growing number of data breaches.

Analog Introduction of plastic cards and standards 1959

Introduction of the fi rst card made of plastic (previously made of cardboard and celluloid) 1970’s Geolocation EMV Chip Visa adds tamper resistant signature panel, card embossing, and microprint security features to protect cards from counterfeit

Electronic Development of risk scoring and more advanced fraud systems; industry experiences fi rst processor data breaches Next Generation 1985 Shift from static and knowledge-based solutions that can be stolen or forged to dynamic and more resilient technologies Real-time electronic authorization verifi es canceled, past due, or reported stolen 2015 accounts Tokenization 1988 Visa Token Service available for Visa Checkout and Visa Card Recovery Bulletin lists Digital “card-on-fi le” digital merchants lost, stolen, past-due, over-limit, Advancements in technology allow for development of tokenization and Biometrics counterfeit or otherwise launch of Apple Pay; breaches shift away from processors to merchants Visa publishes biometrics specifi cation for chip problem cards 2001 2011 card transactions 1989 Compromised Account Michaels breaches (one in 2011, Geolocation Visa Issuers’ Clearinghouse Management System developed two in 2013) potentially Visa Mobile Location Confi rmation matches the Service provides centralized to alert banks of merchant compromise PIN numbers and location of a registered mobile device to the location database of approved security compromises ~3M payment card accounts of a Visa transaction for more accurate risk scoring and fraudulent bankcard applications 2003 Chip Chip card technology comes to U.S. consumers and 2012 1990 Visa requires truncated card businesses numbers on receipts to protect Visa Consumer Authentication Visa adds Card Verifi cation Value Cybersecurity (CVV) security code for magnetic account information Service improves ecommerce Visa and FireEye launch Visa Threat Intelligence stripes DPI data breach; 8M card fraud detection using advanced accounts compromised issuer analytics 1993 Encryption Visa Merchant Data Secure Visa expands merchant incentives to encourage 2004 Visa uses neural network technology protects sensitive account point-to-point encryption through the Visa to risk score transactions Visa joins other networks to form information through encryption Technology Innovation Program the Payment Card Industry (PCI) 1994 Security Standards Council and Beyond Visa, Europay, and MasterCard, release the PCI Data Security 2013 provide EMV specifi cation for chip Standard Risk scoring improvements boost Tokenization 1995 2005 Visa fraud detection up to 130% Extend tokenization use cases to other channels for debit and 175% for credit Visa Advanced Authorization and new merchant segments Visa publishes fi rst set of PIN transactions security requirements that protect detects potential fraud globally, Target breach; 40M payment Biometrics cardholder PINs at POS in real time card accounts stolen and Shift to stronger forms of authentication and drive CardSystems Solutions data 1996 industry cost estimated to be continued uptake of secure biometric verifi cation breach; 40M card accounts $248M methods Visa Address Verifi cation Service compromised allows ecommerce merchants 2014 Geolocation to verify the cardholder’s 2009 Use mobile phones as a proxy for consumer identity billing address Visa Token Service Visa transaction alerts provide launches; Apple Pay launches as Chip 1997 near real-time alerts to fi rst commercial partner Continue to drive secure payments with chip Credit and debit cardholders consumers when transactions technology supporting mobile payments are not responsible for fraudulent meet certain criteria Visa Transaction Advisor for transactions as a result of Automated Fuel Dispensers Data Analytics Visa Zero Liability launches to prevent gas - Increase engagement from all stakeholders in 2010 station fraud fraud prevention using real-time transaction alerts 1999 Visa requires PIN encryption at Fraud costs US retailers ~$32B; - Continue to broaden use of mobile data in risk Visa introduces Card Verifi cation retail terminals and ATMs JPMorgan Chase cyber attack scoring Value 2 (CVV2), the 3 digit ALDI debit card accounts and aff ects 76M accounts - Enable an increasing set of stakeholders to use security code used in ecommerce PINs compromised from ~1,100 Home Depot breach; 56M Visa risk scores transactions grocery stores payment card accounts stolen