International Card Systems Skopje, Macedonia

1. International Card SystemsSkopje, Macedonia

2. What is CaSys? • CaSys is a regional card processor offering payment card services to banks and non-financial institutions. • NPK (National Payment Card) was established by the government of Macedonia four years ago as a national payment card center. In the middle of 2003, NPK was privatized and renamed to CaSys, which became a member of the FIBank Group. • In the beginning of 2005, CaSys was certified as a MasterCard Member Service Provider and Visa Third Party Processor for chip cards. • CaSys is certified and applies ISO 9001:2000 standards. 2

3. CaSys Statistics • The CaSys platform contains:front office ACI B24 and back office ACI CMSrun onHP/Tandem machine, HSM Atalla, CIM as personalization machine and P3 THALESS for EMV data preparation. • At present CaSys employs thirty people. • CaSys services six banks in three countries, and has issued 30,000 chip cards, processed 250,000 transactions, and manages 70 ATM terminals. • By the end of 2006, CaSys plans to work with 10 regional banks, to have issued 100,000 chip cards, to manage 800 ATMs and 1,000 POS terminals, and to have processed 1.5 million transactions. 3

4. Why CaSys for Member Banks? • The objective of CaSys is to become the leading regional provider of processing services in the area of cashless payment systems. • CaSys offers extension and enhancement of the quality of e-payment services for banks. • CaSys as a mediator between banks and international card networks can reduce the complexity and time required to process a member’s licensing. • CaSys as a certified processor can lower initial as well as operational costs for the members of the international card networks. 4

5. CaSys Services in Brief • Switching, authorisation and processing of transactions. • Card personalisation and PIN generation. • Clearing and settlement. • Dispute transaction processing. • Key management. • Management and maintenance of ATM/POS network. • ATM/POS type certification. • Multilanguage customer support center, 24 hours a day, 365 days a year. 5

6. Why CaSys for Issuing? • Issuing cards from international networks: • Visa Electron, Visa Classic, Visa Business, Visa Gold, etc. • Maestro, MC Standard, MC Business, MC Gold, etc. • Diners • American Express • Card personalization techniques: emboss, infill, indent, magnetic stripe, chip, hybrid, printing of: bar code, logo, photos. • Plastics/chip vendor partners are AustriaCard and GemPlus. 6

7. Why CaSys for Issuing? • Issuing and card management of various card types: debit, credit, proprietary, loyalty, private cards for non-financial institutions. • Calculation, on behalf of banks, of various charges and fees for the cardholders: for transactions, cards, accounts, interest rates, penalty fees. • Switching and on-line/off-line authorization of transactions. • Processing of transactions results in information for clearing of cardholder accounts. • Risk management. 7

8. Why CaSys for Acquiring? • Management and monitoring of ATM/POS network. • Connection with international networks. • Calculation, on behalf of banks, of various charges and fees for the merchants: for transactions, interest rates depending on settlement period. • Processing of transactions results in information for clearing of merchant accounts. • Risk monitoring. 8

9. CaSys Network On-line connected banks and processors CaSys ATM network POS network ACI-CMS Off-line connected banks 9

10. CaSys Connections • CaSys has on-line connections with the Visa Center in London and the MasterCard Center in Waterloo. • Constant exchange of data between banks and CaSys requires a permanent connection through leased line or one of the following: frame relay, VPN, satellite line. • Protocol BIC ISO 8583 is required between bank host and CaSys system for switching and on-line authorization. • Off-line connection between banks and CaSys is via file transfer. 10

11. Ongoing and Future Projects • Payment portal for: • E-commerce • Bill payments • Mobile top up • Loyalty programs • Installment programs • SMS alerts • Integration of m-banking with payment cards 11

12. Payment Portal • 3D-secure, integrated with MCSC and VbV • New payment channels: internet, АТМ andPOS terminalswith new function, SMS, IVR • E-commerce – internet selling/buyingwith payment cards • Bill payments – payments of utility bills, post-paid mobile telephony • Mobile top up – recharging pre-paid mobile telephony 12

13. Payment portal Payment Portal ATM network Banks/Other processors POS network CaSys www.cpay.com.mk E-shop Internet Customer SMS Service providers ACI-CMS IVR 13

14. In Brief • Banks require a minimum of technical effort in order to connect to international card networks with CaSys as processor • Banks can optimize their staff in the retail area with CaSys as card processor • CaSys helps to strengthen the relationships between banks and their customers, both cardholders and merchants • CaSys provides payment solutions for banks in multiple segments • Banks determine their own pricing and profit model for their card customers 14

15. For further information please contact: Sandra Tomanovic Phone: +389 2 3293 861 e-mail: sandrat@casys.com.mk Lidija BogoevskaPhone: + 389 2 3293-879E-mail lidijav@casys.com.mk or visit: www.casys.com.mk 15