SENA POSLink series SerialEthernet connectivity for credit card

SENA POSLink series Serial-Ethernet connectivity for credit card payment terminals June, 2002 www. sena. com March, 2002

Contents • • • The Market Opportunity POSLink 100/400 Benefits System Configuration Technical Details: – Technical Specification – Software Architecture – Hardware Architecture • System Comparison – Legacy off-line payment processing system – IP-based off-line payment processing system • Embedded References • Connectivity Target Customers • Implementation Issues www. sena. com

The Market Opportunity • Broadband Service Providers (in South Korea) – 25 M Internet users, 8. 9 M Broadband households nation-wide (70% of total households, DSL 5. 6 M, Cable 3. 3 M), 45 M population – USD 20~30 per month – Three major providers for DSL & Cable • Credit Card Processors (in South Korea) – 10 processors nation-wide – 1. 5 M payment terminals in the market – Very competitive market • Limitation – Still locked into dial-up or proprietary leased line – Long processing time for dial-up: 20 secs – High monthly service charge for leased line: USD 50+ per line per terminal www. sena. com

POSLink 100/400 A box for IP-based off-line credit card payment processing Payment Processing Server Internet Merchant Location POSLink 400 POSLink 100 Merchant LAN Or Broadband line Payment terminal www. sena. com Credit card Processor Location

POSLink 100/400 • Secure transaction – Full SSL Data Encryption for secure credit card transaction • Lightspeed transaction – Overall processing time less than 2 secs • Multiple terminals with single broadband account (POSLink 400) • Remote firmware download & monitoring for payment terminals • Extremely low transition cost • Out-of-box installation without any modification of existing devices: Just hook up & go • Platform alternatives – Firmware based platform with 16 bit microprocessor – Linux based platform with 32 bit microprocessor www. sena. com

Benefits • Broadband Service Providers – Looking for new revenue sources – Saturated market for households and small offices – More than 1. 5 M new subscribers that are POS terminals and still increasing • Credit card processors – Strong needs to provide quality services to dominate market – Easy system maintenance with Internet-based remote device & system management – Seamless integration of on-line and off-line payment system – Generate new revenue model with Internet-based services such as on-line lottery & joint promotion with merchants • Merchants – Lower monthly cost for credit card transaction – Fast credit card payment processing time – Easy installation and relocation of payment terminals www. sena. com

System Configuration • Enable serial-line based credit-card payment terminals to be connected to Ethernet or broadband Internet • Transaction via TCP/IP with SSL encryption 66. 12. 89. 34 ADSL/Cable ISP Internet Approve payment transaction Request payment authentication ADSL/Cable modem HUB Notify transaction complete 211. 115. 67. 188 Initiate payment transaction www. sena. com Payment Authentication Server

Technical Specification POSLink 100 POSLink 400 POS Terminal Interface Serial 1 port Network Interface • 10 Base-T Ethernet with RJ 45 Ethernet connector • Supports static and dynamic IP address Protocols ARP, IP/ICMP, TCP, UDP, Telnet, DHCP client, PPPo. E Security User ID & Password Data Encryption: SSL Management • Management Tools: Serial console port • Firmware: Stored in Flash memory and downloadable via serial console or telnet LEDs • Power, Ready, 10 Base-T: Link, Act • Serial: Rx, Tx for each serial port Power Supply voltage = 7. 5 V ~ 30 V DC Supply current = 140 m. A nominal Environmental • Operating temperature: 5° to 50°C • Serial speeds: 1200 bps to 19200 bps • Flow Control: Hardware RTS/CTS • Signals: Rx, Tx, RTS, CTS, DTR, DSR, GND Embedded • Storage temperature: -40° to 66°C Connectivity 95 mm L x 80 mm W x 25 mm H Dimension & Weight (3. 7 in x 3. 1 in x 1. 0 in) 200 g Approvals www. sena. com Serial 4 ports FCC(A), CE(A), MIC 230 mm L x 153 mm W x 30 mm H (9 in x 6 in x 1. 2 in) 960 g

Software Architecture • Encryption algorithm (SSL, IPSEC) – SSL(Secure Socket Layer) as a basic encryption method • Asymmetric key exchange, Popular method in PC-based credit card transaction – Flexible TCP/IP stack software and the encryption software • Easy-to-customize to customer’s requirement Serial raw data from/to the payment terminal Serial Communication VDM Emulation data & raw credit info VDM Emulation Raw credit info. Encryption Decryption Encrypted credit info. TCP/IP ADSL을 사용할 경우 www. sena. com PPPo. E ADSL packet Encrypted credit info. Cable 또는 or Ethernet 인터넷 전용선 사용할 경우 Ethernet & ARP Cable or Ethernet packet

Hardware Architecture IP 4 CAT POSLink Credit Card Authorization Payment RS 232 Serial Level Converter Terminal UART MCU (프로그램저장 ) RAM (프로그램메모리 ) Cable/ADSL Modem, Router www. sena. com Ethernet Controller Internal bus ROM

System Comparison Legacy off-line payment processing System • Phone-line based system – Charge per transaction • The more the transaction, The higher the maintenance cost – Slow overall processing time for payment terminal – No data encryption required • Proprietary leased-line based system – – Flat rate but expensive Fast overall processing time compared to phone-line No data encryption required Leased line service providers do not invest for infrastructures PSTN Modem Leased Line Modem www. sena. com PSTN/Leased Line Modem pool

System Comparison IP-based off-line payment processing system • • • Connect to Ethernet or broadband Internet (ADSL, Cable) Flat & lower monthly rate Fast overall processing time Benefits from the shared line connection Secure transaction is the key – Data Encryption: Industry standard SSL (Secure Socket Layer) www. sena. com

System Comparison In Korean market Phone-line Proprietary leased-line Internet (ADSL, Cable) Monthly Fee Charged by the number of phone calls = 4 cents/call Flat rate per line = $65 for 4 line multiple Flat rate per line = $23/month Transaction Time 20 sec 5 sec 2 sec Comment - For large-scale retailer - Saturated For low-volume infrastructure but no transaction & investment plan by Small retail shop service providers www. sena. com - Good for highvolume transaction - Good for existing Internet users

References • KMPS: processor & acquirer – Field test at merchants location completed with 16 bit -based POSLink 100 – 16 bit-based POSLink 400 – Payment terminal by domestic manufacturer – Close an initial supply contract of POSLink 100 • KFTC: processor & acquirer – Feasibility test with 32 bit & Linux based POSLink – IDphone: Payment terminal manufacturer • Demonstration for other 7 domestic processors with payment server emulation software www. sena. com

Target Customers • • • Credit card processors and acquirers Payment terminal manufacturer POS system integrator or value added resellers Broadband service providers Merchants as end users www. sena. com

Implementation Issues • Communication with authorization server – For servers that doesn’t support SSL • The authentication server for credit card payment processing may have to be modified for server-side data encryption/decryption for the case of legacy dialup & leased line based server. • SENA’s tool kit with standard SSL – For servers that supports SSL • No server-side job required • Legacy POS terminal interface – Serial interface with POS terminal – Dial-up only terminals without any serial port • Dial-in interface is to be supported according to the payment terminal www. sena. com

Contact SENA Technologies, Inc. info@sena. com Phone: +82 -2 -529 -7025 Fax: +82 -2 -573 -7710 Web Address: http: //www. sena. com 210 Yangjae-dong Seocho-gu Seoul 137 -130, South Korea www. sena. com