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W W W. M A I N E B I Z . B I Z 33 A P R I L 2 0 , 2 0 1 5 "It's cost-prohibitive to replicate these EMV cards. With the random number generation, anything dynamic is much better than a magnetic stripe." Despite the fraud issues, the switch to EMV is not mandatory, and is being driven by industry, namely MasterCard and Visa. e twist, however, is that as of Oct. 1, 2015, merchants without terminals that can read EMV cards risk taking on the responsibility of fraud losses, which banks previously held. Banks and credit card issuers are supposed to have EMV chips in their cards by the same date, but the transition will likely take several years, Whitney and other bankers say. e EMV guidelines call for banks to have their ATMs able to read EMV cards by Oct. 1, 2016. Unattended gas pumps have until Oct. 1, 2017, to add EMV readers. Huge shift e delay in implementing the cards and changing ATMs, cash machines and point-of-sale terminals is the sheer magnitude of the eff ort — some 1.2 billion credit cards and 8 million point- of-sale terminals alone are involved, according to Javelin Strategy & Research. Also, the payback in cost versus fraud risk remains a question in EMV adoption, especially for smaller merchants, notes Whitney. He estimates the average cost to implement EMV readers in each ATM is $3,000, with a similar cost for EMV readers at merchant point-of- sale terminals. Also, the average cost to issue an EMV debit or credit card is $3.50, more than three times the $1 for a conventional plastic card. C O N T I N U E D O N F O L L OW I N G PA G E » $3,000 Average cost to implement EMV readers in ATMs $2,000–$3,000 Average cost to implement EMV readers at merchant point-of-sale terminals S O U R C E S : Javelin Strategy & Research, Norway Savings Bank, The First N.A., Aite Group, 2014 PULSE Debit Issuer Survey 575 million Number of EMV cards to be issued in the United States by the end of 2015 Changes by the end of 2015 Changes in the next two years Price of card production Price of EMV reader upgrades $1.00 Average cost to issue a conventional plastic card $3.50 Average cost to issue an EMV card Where the new bank chips fall 10/01/15 Burden of fraud loses shifts to party without EMV implemented 10/01/16 Banks must have EMV in ATMs 10/01/17 Unattended gas pumps must have EMV readers 86% Financial institutions expecting to issue EMV debit cards in next two years Imagine... If you could obtain financing for your business in 2015 what would you finance? Call 207.772.4496 for a no-obligation consultation or visit us at cfaw.com/portland/ CORPORATE FINANCE ASSOCIATES Securities Oered Through Corporate Finance Securities, Inc. Member FINRA/SIPC • cfaw.com/portland/ Vision Liberates Capital 6 State Street P.O. Box 2444 Bangor, ME 04402-2444 Tel 207-945-6222 Fax 207-945-5824 www.epsteincommercial.com results@epsteincommercial.com "Results are our measure of success" u COMMERCIAL u INDUSTRIAL u INVESTMENT REAL ESTATE u u SALES u LEASING u FOR SALE SUBURBAN OFFICE BUILDING Immaculately maintained, single story 9,233 +/- sf office building. Recently renovated, including a new roof and new heat pumps. Located adjacent to the Bangor International Airport, on Illinois Avenue, with easy access to I-95. Flexible layout provides for a single or multi-tenant layout. 59% Retail locations expected to comply with EMV 70% U.S. credit cards containing EMV chips 40% U.S. debit cards containing EMV chips

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