“EMV Chip” refers to a microchip that contains software logic providing superior transaction security. It is named EMV for Europay International, MasterCard International and Visa International. The chip can carry more sophisticated payment applications, including enhanced security programs that provide better protection against unauthorized use of client cards. The chip can also provide innovative services including new payment programs like Stored-Value and Micro-Payment programs.

Broad penetration of Debit and Credit chip cards will bring significant benefits to cardholders, merchants and the Canadian payment card industry:

• Significant reduction in debit and credit card fraud.
• Greater ease of card use and convenience.
• High potential for additional applications and services on one card.
• Enhanced confidence in the Canadian payment card system.

Everlink has completed the EMV Chip upgrades to the Everlink node and will make the C2C and CUCC Interac Nodes EMV Chip ready by the end of the second quarter 2008. This phase involves re-architecture of the Everlink CyberGateway infrastructure at the regional level relative to the credit union system specific environment, implementation of the EMV Chip software upgrade, and Node quality assurance testing. Following this activity, we will begin external certification and validation to Interac®, Visa® and MasterCard® and certification testing to system suppliers such as CUETS.

The Everlink node is currently Interac EMV Chip certified to SCD certification standards. Everlink also participates in Interac EMV Chip Committees.

In order to achieve this target date we will work together in conjunction with our clients to understand, communicate and test the required modifications to support EMV Chip technology including any changes to existing procedures, file formats or processes in relation to EMV implementation. The final step is the process of the credit union host banking system testing to validate EMV Chip functionality in a fully certified environment. Everlink will work with each banking system provider, system supplier such as CUETS, ATM manufacturers and Credit Union Centrals to complete the required certification activities to enable EMV Chip transaction processing for credit union member cards and terminals.

Everlink is working with credit unions today to enable credit union clients to be at the forefront of the new EMV Chip card standards delivering the security and breadth of capabilities that EMV Chip technology has to offer. Everlink is one of the select members of the Multilateral (Kitchener-Waterloo Chip Trial) Steering Committee. The Everlink investment into the enhanced infrastructure will provide a more consistent solution set for credit unions and establishes the groundwork to enable additional services for all of our clients.

Everlink has established a project team which includes employees, 3rd party vendors and consultants. The project team has been in place for over a year and will continue to work on this multi-phase project well into 2008. The services for EMV Chip will be integrated into the Everlink service offering and product roadmap as the services are implemented.

Everlink’s integration road map includes delivery of the following EMV Chip-related components:

• EMV Chip translator
• PIN management services
• Transaction Processing
• Key Management services
• Script generation and downloading to the chip card
• Interface to Smart Card Management Systems
• PIN change at the ATM

With the investments made to-date by Everlink, Canadian credit unions and other stakeholders, Everlink is eager to participate in leadership, facilitation and/or content roles as appropriate. Everlink is committed to working with Canadian financial institutions to implement EMV Chip capabilities on whatever time-line is defined.