EFTA Document EFTA01382689

N-I/A of Contents ottisir, Service Description Benefits Back-Office Comprehensive fraud research and investigation Outsourcing services, dispute resolution services, and chargeback management. End-to-end solution from the point of dispute through documentation Reduced expenses and operational complexity for financial institutions Minimized fraud losses through cardholder challenges. charge-backs and investigative efforts Support and adapt to network regulation changes Programming Full-service team that supports custom programming • Customizable products. solutions, and tools for and and development requests from financial institutions to clients Development tailor our solutions to their needs. Ndwork & Security Solutions Our Network & Security Solutions segment provides a range of network solutions and security, risk and fraud management solutions to business and financial institution clients in our OBS and GFS segments, and independently to financial institutions, businesses, governments, processors, and other clients. This segment also includes our Data and Analytics Solutions, Online and Mobile Banking Solutions, Healthcare Solutions and Government Solutions. and serves clients in the United States and outside the United States. Our largest service in this segment is our STAR Network, which enables clients to encrypt, route, and decrypt various types of financial data, process debit and ATM transactions, and provide access to demand deposit accounts. In 2014, our STAR Network routed 3.6 billion transactions in the United States, up 3% over 2013. Network Solutions We provide a range of network solutions to business and financial institutions clients. Our EFT Network Solutions manage debit card and account processing solutions and facilitate EFT commerce, such as PIN debit. PIN-less debit, and ATM transactions. Our Stored Value Network Solutions facilitate stored value commerce, such as (1) closed-loop prepaid transactions, which are initiated by various types of prepaid cards issued by enterprises, such as retailers, that issue enterprise-branded cards that can generally be used only at the enterprise issuing the card or account, and (2) open-loop prepaid transactions, which arc initiated by various types of prepaid cards issued by a bank and carry a network association brand, such as Visa or MasterCard. enabling them to be used at multiple merchant locations. Our EFT Network Solutions citable our business and financial institution clients to route secure, encrypted data betwixt themselves on our STAR Network to facilitate PIN and PIN-less debit and ATM transactions. Our STAR Network is connected to over 3,800 financial institutions and community banks. over I million POS and ATM locations, and numerous third-party payment processors, ATM processors. and card processors that participate in the network. When a business, a merchant acquirer, or an ATM owner acquires a STAR Network transaction, it sends the transaction data to the network switch, which is operated by us. which in turn routes the encrypted information to the appropriate financial institution for authorization. To be routed through the STAR Network, a transaction must be initiated with a card participating in the STAR Network at an ATM or POS device also participating in the STAR Network. Revenues related to the STAR Network are derived from fees payable under contracts and negotiated rate structures. but arc driven more by the data transactions processed than by accounts on file. In a situation in which a debit transaction uses our network and we are the debit card pnnasor for the financial institution as well 129 http://vanv.see.gov/Archi vecledgaddataht83980/000119312515334479/d31022ds la.htmill 0/14/2015 9:06:38 AM] CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0082148 SDNY GM_00228332 EFTA01382689