First MasterCard Chip Transaction Signals Readiness for Roll-out Across Canada



    TORONTO, Sept. 25 /CNW/ - A simple payment transaction made today at a
Toronto-area spa and salon marked an important milestone in the introduction
of chip cards in Canada. It was the first chip and PIN transaction made with a
Canadian MasterCard chip card in a real world retail location. The transaction
was made with a BMO Mosaik MasterCard at Tresses Spa and Salon on a Moneris
point-of-sale (POS) terminal.
    The transaction demonstrates the advanced state of readiness for the
roll-out of chip cards and devices. As a card issuer, BMO Mosaik MasterCard -
the largest MasterCard issuer in Canada -- is preparing for the phased
introduction of chip cards to its cardholders. Moneris Solutions, Canada's
largest processor of credit and debit card transactions, has been providing
merchants across the country with chip-compatible point-of-sale systems to
accept those cards. MasterCard Canada is working with card issuers, processors
and merchants to provide expertise on chip implementation and to ensure the
Canadian transition is made in the most efficient, cost-effective fashion.
    A major market trial of chip cards will take place in Kitchener-Waterloo,
Ontario in a few months time and is a precursor to the national roll-out of
chip cards.
    "We're looking forward to introducing all our cardholders to their new
chip BMO Mosaik MasterCard cards over the next couple of years," said Mike
Kitchen, Senior Vice-President, Card and Retail Payment Services for BMO Bank
of Montreal. "BMO customers value Mosaik MasterCard because it is a quick,
safe and simple way to make purchases from anywhere in the world. By
participating in Canada's first MasterCard chip-to-chip credit card payment
transaction, we are reinforcing with our customers that BMO remains at the
forefront of ensuring that they can make purchases even more safely and
securely than ever before."
    "Chip cards take payment cards to the next level of technology with
greater capacity and enhanced security," explains Kevin Stanton, President,
MasterCard Canada. "The impact on consumers' daily experience is minimal -
entering a PIN instead of signing a receipt - but the benefit for the security
of payments is great. And today we saw another significant milestone achieved
with the first MasterCard chip and PIN transaction."
    "Moneris is at the forefront of bringing chip to the Canadian market,"
said Jim Baumgartner, President and CEO Moneris Solutions. "We were among the
first acquirers in Canada to be chip-certified by three payment brands and we
already have more than 75,000 chip-compatible payment devices in the
marketplace. We're leading the roll-out for chip acceptance across Canada."
    The new chip cards carry a small computer processor chip with memory,
logic and a configuration of software applications, significantly enhancing
security. The chip holds information in an encrypted form and requires the use
of a PIN (personal identification number) to complete the payment process.
Canadian MasterCard cards will also continue to carry magnetic stripes in
order to be compatible with non-chip POS terminals.
    Credit and debit cards are being upgraded to chip in order to enhance the
security of payments and particularly to protect the Canadian market from
global fraud migration as chip rolls out in other countries. Already more than
70 per cent of payment cards issued in Europe are chip-enabled.

    About MasterCard Worldwide

    MasterCard Worldwide advances global commerce by providing a critical
economic link among financial institutions, businesses, cardholders and
merchants worldwide. As a franchisor, processor and advisor, MasterCard
develops and markets payment solutions, processes over 16 billion transactions
each year, and provides industry-leading analysis and consulting services to
financial institution customers and merchants. Through its family of brands,
including MasterCard(R), Maestro(R) and Cirrus(R), MasterCard serves consumers
and businesses in more than 210 countries and territories. For more
information go to www.mastercard.ca.

    About BMO Mosaik MasterCard

    BMO Mosaik MasterCard allows customers to build their own customized
cards by choosing and paying for only the rewards, features and interest rate
plan they want. Customers can also re-build their cards by changing the
features as their needs change without having to replace the card or apply for
a new one.
    Unlike other credit cards that offer a limited selection of pre-bundled
options, Mosaik MasterCard lets cardholders choose from a variety of
individual features such as the AIR MILES Reward Program or a CashBack Reward
Program, Travel Protection, Travel Medical, Concierge Service and either a No
Fee or Low Interest Rate Plan.
    Mosaik MasterCard card is accepted at more than 24 million locations
worldwide.

    About Moneris Solutions
    As one of North America's largest providers of payment processing
solutions, Moneris offers credit, debit, wireless and online payment services
for merchants in virtually every industry segment and processes more than
2.3 billion transactions annually. Through its Ernex division, Moneris offers
electronic loyalty and stored-value gift card programs. With more than 350,000
merchant locations, Moneris provides the hardware, software and systems needed
to improve business efficiency and manage payments. For more information
please visit www.moneris.com.

    /NOTE TO PHOTO EDITORS: Three photos accompanying this release are
    available on the CNW Photo Network and archived at
    http://photos.newswire.ca.
    Additional archived images are also available on the CNW Photo Archive
    website at http://photos.newswire.ca. Images are free to accredited
    members of the media/




For further information:

For further information: Jennifer Reed, MasterCard Canada, (416)
365-6664, Jennifer_reed@mastercard.com; Ralph Marranca, BMO Bank of Montreal,
(416) 867-4995, Ralph.marranca@bmo.com; Riva Turner, High Road Communications
(Moneris), rturner@highroad.com, (416) 644-2242

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MasterCard Canada

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BMO MOSAIK MASTERCARD

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