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VeriFone and First Data Bring End-to-End Encryption and Tokenization to Gas Stations and Convenience Stores

  VeriFone and First Data Bring End-to-End Encryption and Tokenization to Gas
  Stations and Convenience Stores

    Integration meets petroleum merchants’ need for enhanced data security

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                handle with the hashtags #security #Encryption

Business Wire

SAN JOSE, Calif. -- April 29, 2014

VeriFone Systems, Inc. (NYSE: PAY) and First Data Corporation announced today
the launch of the VeriFone edition of the First Data^® TransArmor^™ solution
for U.S. multi-lane and petroleum merchants. The TransArmor, VeriFone edition,
is an end-to-end encryption and tokenization solution that is a result of a
partnership between VeriFone and First Data to address retailers’ need for
enhanced payment security.

The TransArmor, VeriFone edition, enables First Data customers using
VeriFone's Secure PumpPay and MX series of EMV and NFC-enabled devices to take
advantage of a complete security solution combining VeriFone's VeriShield
encryption along with tokenization technology from RSA, the Security Division
of EMC. Cardholder data benefits from increased protection 'in-flight' from
the moment it enters the merchant environment—whether indoors or at the
pump—all the way to First Data’s data center, utilizing VeriFone's hardware
fortified and format preserving encryption technology.

“Data breaches are a widespread problem with over 1.1 billion records
compromised in the last 10 years and the average organizational cost estimated
at $5.4 million^1,” said Paul Kleinschnitz, senior vice president, Cyber
Security Solutions, First Data. "This partnership with VeriFone on the
TransArmor solution illustrates our commitment to collaborate with industry
experts to bring best-in-class security solutions to new markets such as
petro.”

Two petroleum and convenience retailers, including Robinson Oil Corporation
and a major U.S.-based brand of filling stations, will pilot the solution for
end-to-end encryption and tokenization of cardholder data captured at the
counter and at the pump, beginning in July 2014.

“Petroleum and convenience store retailers have been increasingly focused on
bolstering payment security, especially in light of recent breaches in the
headlines,” said Tom Robinson, president of Robinson Oil Corporation, which
will roll out the TransArmor, VeriFone edition across its 34 Rotten Robbie
retail locations following the pilot. “As a result of First Data and
VeriFone’s solution, we now have the means to enhance cardholder data
protection long before the 2017 EMV deadlines take effect for transactions at
gas pumps.”

“Being the first to bring end-to-end encryption and tokenization to the petro
space, especially in a way that enhances security at the pump—an unattended
site vulnerable to the types of attacks seen in recent headlines—demonstrates
VeriFone and First Data’s commitment to addressing security needs beyond
encryption,” said Dan Yienger, senior vice president and general manager of
Petroleum for VeriFone. “This solution enhances our offerings to the retail
petroleum industry while serving as a testament to our leadership in payment
security innovation.”

To secure data 'at rest,' the solution has been engineered with RSA
tokenization technology that replaces card data with a token number that
preserves the value of card data for merchant business operations but removes
value for fraudsters. When implementing the TransArmor solution, merchants
will meet or exceed existing industry guidelines and requirements for
end-to-end encryption and tokenization of payment card data regardless of
their unique environment.

^1 Ponemon Institute, 2013 Cost of a Data Breach Study, May 2013; Verizon RISK
Team, 2013 Data Breach Investigation Report, April 2013

Additional Resources

  *VIDEO: TransArmor
  *Encryption & Tokenization
  *First Data and VeriFone Collaborate on Data Security Solution

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 for VeriFone Systems, Inc

This press release includes certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations or beliefs and on
currently available competitive, financial and economic data and are subject
to uncertainty and changes in circumstances. Actual results may vary
materially from those expressed or implied by the forward-looking statements
herein due to changes in economic, business, competitive, technological and/or
regulatory factors, and other risks and uncertainties affecting the operation
of the business of VeriFone Systems, Inc., including many factors beyond our
control. These risks and uncertainties include, but are not limited to, those
associated with: market adoption of our security and encryption solution,
execution of our strategic plan and business initiatives and whether the
expected benefits of our plan and initiatives are achieved, short product
cycles and rapidly changing technologies, our ability to maintain competitive
leadership position with respect to our payment solution offerings, our
assumptions, judgments and estimates regarding the impact on our business of
the continued uncertainty in the global economic environment and financial
markets, our ability to successfully integrate acquired businesses into our
business and operations, our ability to protect against fraud, the status of
our relationship with and condition of third parties such as our contract
manufacturers, distributors and key suppliers upon whom we rely in the conduct
of our business, our dependence on a limited number of customers, the conduct
of our business and operations internationally, our ability to effectively
hedge our exposure to foreign currency exchange rate fluctuations, and our
dependence on a limited number of key employees. For a further list and
description of the risks and uncertainties affecting the operations of our
business, see our filings with the Securities and Exchange Commission,
including our annual report on Form 10-K and our quarterly reports on Form
10-Q. The forward-looking statements speak only as of the date such statements
are made. VeriFone is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements, whether as a
result of new information, future events, changes in assumptions or otherwise.

About First Data (www.firstdata.com)

Around the world, every second of every day, First Data makes payment
transactions secure, fast and easy for merchants, financial institutions and
their customers. First Data leverages its vast product portfolio and expertise
to drive client revenue and profitability. Whether the choice of payment is by
debit or credit card, gift card, check or mobile phone, online or at the
checkout counter, First Data takes every opportunity to go beyond the
transaction. More information about the company is available on FirstData.com
as well as on Twitter, LinkedIn, Facebook and YouTube.

About VeriFone Systems, Inc. (www.verifone.com)

VeriFone Systems, Inc. (“VeriFone”) (NYSE: PAY) is the global leader in secure
electronic payment solutions. VeriFone provides expertise, solutions and
services that add value to the point of sale with merchant-operated,
consumer-facing and self-service payment systems for the financial, retail,
hospitality, petroleum, government and healthcare vertical markets. VeriFone
solutions are designed to meet the needs of merchants, processors and
acquirers in developed and emerging economies worldwide.

Contact:

VeriFone Systems, Inc.
Andy Payment, +1 770-754-3541
andy.payment@verifone.com
or
Elizabeth Grice, +1 303-967-8526
elizabeth.grice@firstdata.com
 
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