Services for cards & payments

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ServiceS

for cardS & paymentS

annual

report

2012-2013

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annual report 2012-2013

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EXPERTISE

GEARED TO

DEVELOPING

CLIENTS’

BUSINESSES.

2 Foreword

the payments market is evolving fast on the back of new regulations, rapid technological development, new payment behaviour and, of course, the advent of the single euro payments market, Sepa.

all these factors are compelling banks and large remitters to adapt their systems while maintaining top levels of service, bearing in mind that payment efficiency is a major means of leveraging performance. Crédit agricole Cards & payments is fully focused on these challenges and thus delivering the maximum performance benefits to clients. our commitment in this area was underscored by a number of successes in 2012 and particularly by HSBC France’s decision to award us the contract to process all of its payment transactions. this success with HSBC France testifies to the high-level expertise and motivation of our staff and rewards the investment made in building our new payments platform, a state-of-the-art, scaleable, multi-bank, cross-border tool in a class of its own in europe.

The platform meets banks’ and large remitters’ needs for simplicity and transparency, while guaranteeing total availability and ultra-secure services. an agile technical architecture enables us to bring innovative and value-creating solutions to the market in the shortest timescales, while the ability to process extensive volumes means lower unit costs for processing transactions, an advantage our clients reap in full. Work on building the platform is now in the final stages. this year has seen the addition of new functionalities that respect the time and quality commitments made to our clients. This major industrial modernisation effort has been rounded out with a 100% client-focused organisation. our new Client Service department is set up to ensure even closer proximity to clients and their needs, while our client commitments are enshrined in individual service level agreements.

In short, Crédit agricole Cards & payments provides all the components needed to assist you long term in achieving your business development objectives. Jean-Chistophe Kiren

Chairman, Crédit agricole Cards & payments, Head of Crédit agricole Sa’s payments division Bernard Noël

Chief executive officer, Crédit agricole Cards & payments

As the Crédit Agricole Group’s foremost

payments processor for the last 40 years,

we rank first in the payments market in france and among

the leading players in europe.

our 530 staff harness their unrivalled know-how and expertise

to deliver unparalleled service to our banking and large remitter

clients. thanks to our payments platform, clients reap

the benefit of simple, efficient and competitive solutions

capable of meeting the market’s current and future regulatory

and technical demands.

Our strengths

State-of-the-art SolutionS

Serving our clientS’ payment

StrategieS

A PLATFORM UNIQUE

IN EUROPE

All payments throughout Europe.

our payments platform handles all payment transactions, including card systems and electronic banking, and covers the whole of the value chain for debtors and creditors. as an open-architecture , scaleable, multi-bank, cross-border facility, it is connected to all european market systems and can handle transactions from any banking establishment or large remitter, whether located in one or several european countries. the platform complies fully with the technical, legal and financial requirements of Sepa and ensures our clients have access to infrastructure and systems in time for the 1 February 2014 deadline. It is designed to ensure we can assist you in achieving the smoothest changeover possible.

Competitive prices founded on high-volume processing capacity. today’s regulatory and competitive environment is forcing payments processors to reduce

the unit cost of processing transactions. our platform’s ability to process extensive volumes has already unlocked decisive economies of scale and will continue to do so in the future. In addition to HSBC France and Crédit agricole Bank polska

who are already onboard, the platform is designed to host other French and european clients who are keen to benefit from some of the most competitive solutions available on the market.

Simple, reliable, state-of-the-art solutions. the payments platform incorporates the best software on the market and is open, transparent and scaleable. It underpins our ability to provide simple and robust state-of-the-art solutions that guarantee maximum levels of availability, service, reliability and security. the use of open architecture means we can deliver customised solutions tailored to the needs of individual clients and their markets. each client consequently has access to a powerful business development tool that ensures client satisfaction.

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BILLION TRANSACTIONS.

€300

BILLION ISSUEd ANd RECEIvEd EACH dAy.

No.1

FOR BANK-CARd PERSONALISATION IN FRANCE. (24% of the market)

30%

OF FRANCE’S PAyMENTS MARKET.

7%

OF THE EUROPEAN MARKET.

530

STAFF.

40

yEARS OF ExPERIENCE.

€134

BILLION IN CASH MANAgEMENT.

Crédit Agricole Cards & Payments

has developed a payments platform in a class

of its own in the market. this open-architecture, scaleable, cross-border, multi-bank

facility provides payment solutions tailored to your needs and systems.

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7 ExPERTISE gEAREd TO

dEvELOPINg yOUR BUSINESS

Preparing the payments future.

Crédit agricole Cards & payments helps you respond to future challenges in the industry. During 2012 and 2013,

A COMPREHENSIvE ANd

MIx ANd-MATCHABLE RANgE

OF SOLUTIONS

at Crédit agricole Cards & payments, we provide banks and large remitters with solutions compliant with regulatory and technological requirements and with their business constraints and needs. We design these solutions to increase the efficiency of your business, particularly from a cost optimisation standpoint.

The whole of the value chain.

Whether in card systems, payment processing or payment media security, we cover the whole of the processing value chain. We leverage our high-performance, open-architecture platform to deliver mix-and-matchable solutions adapted to your specific needs and infrastructure, both in France and the rest of europe.

Simplicity and transparency.

our solutions fulfil the need for inter-operability demanded of payment systems in an open and pan-european market. Despite the complexity

of the payments business, our solutions are designed for ease of use and transparency. economic efficiency. our industrial platform can process extensive transaction volumes, thus ensuring our solutions are among the most competitive on the market.

Agility and anticipation.

Crédit agricole Cards & payments anticipates market developments so as to devise new solutions for tackling the challenges that lie ahead of our clients. thanks to this agility, we can put innovative solutions onto the market in the shortest timescales for the benefit of banks and their own clients. we worked on numerous projects

with a focus on innovation, efficiency or adapting to regulatory changes: examples include the development of our MultiServices terminal, the industrialisation of contactless payment cards, m-payment solutions and the launch of environment cards made from organic plastic.

guaranteeing operational efficiency.

at Crédit agricole Cards & payments, we put all the resources and processes into place needed to ensure you enjoy optimal reliability of service. our focus on high-quality solutions, to which we commit through service-level agreements, means a very low number of incidents and constant system availability.

In order to guarantee impeccable levels of security, we have been engaged in an extensive It infrastructure migration project since 2012, which involves gradually relocating our infrastructure to “Greenfield”, the Crédit agricole Group’s new datacentre. Greenfield comprises three identical sites, one of which serves as a back-up in the event that the two others fail, and stands in a class of its own in europe for security.

Anticipating market developments.

Crédit agricole Cards & payments participates in all market bodies and maintains close relations with regulators. this proximity to the industry’s decision-making centres makes us ideally placed to anticipate future regulatory and technical changes and thereby assist clients in the process as early as possible and defend their interests as best as possible.

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7 Véronique Flachaire,

Chief Executive Officer, Caisse régionale du Languedoc.

“We refer to all of our payment services as ‘day-to-day’ banking. these ser-vices are the first ones our individual, professional and business clients require, and they obviously need to function perfectly, whatever the type of transaction. in other words, the slightest incident can have far-reaching repercussions. this explains why we rely on crédit agricole cards & payments and more specifically on its operational efficiency and expert staff. We also benefit from competitive rates, which is a decisive advantage in our increasingly competitive business.”

Like all of the Crédit Agricole Group’s regional mem-ber banks, the Caisse régionale du Languedoc is a client of Crédit Agricole Cards & Payments. It ben-efits from an extensive array of services that notably embraces payment processing, electronic signature certification, ATM management services and use of the SWIFT messaging system.

Philippe Marié,

Chief Executive Officer, Crédit Agricole Bank Polska.

“crédit agricole cards & payments’ services provide an excellent opportunity for a bank like ours. the ‘Group effect’ enables us to access a state-of-the-art payments platform. the platform has also confirmed that it is highly price-competitive. this advantage wasn’t initially obvi-ous, given that the polish solutions we were accustomed to using had the advantage of lower labour costs.” Crédit Agricole Bank Polska is currently seeking to extend its prime posi-tion in the Polish market via a drive to recruit new clients. It started to work with Crédit Agricole Cards & Payments in 2013 with a view to capitalising on attractive price rates and offering new services to its clients.

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in a way that allows users to differentiate themselves on their market via a broad array of innovative services. underpinned by thin client technology, the platform’s centralised management approach also optimises time-to-market.

Acceptance and acquisition (retailer card systems). We provide all the infrastructure needed to handle bank card exchanges, including, for example, acquisition and authorisation servers, payment and withdrawal systems, retailer back-office, etc. our platform processes all types of bank-card transactions (purchase and withdrawal), as well as the associated financial flows.

PAyMENT FLOw ACQUISITION

ANd PROCESSINg

Processing all payment flows.

We process all payment flows (cards, cheques, drafts, european credit transfers and direct debits), and cover all stages of transactions from exchange to clearing and settlement. our multi-bank platform has the capacity to handle 20-50 million messages a day, while ensuring data remains segregated within the system.

SEPA transactions. our platform is fully compliant with the technical and legal requirements of Sepa, and can process both Sepa Credit transfers (SCts) and Sepa Direct Debit (SDDs). other services are available to assist with Sepa migration, such as services for managing mandates (issuance, recording, data dematerialisation), for legal archiving and for managing transactions (conversion of national bank account IDs into BIC-IBan codes, set-up of SDDs, bank issuance, etc.).

CARd SySTEMS

Card holder systems. Crédit agricole Cards & payments operates throughout the bank card and non-bank card life cycle (card issuance, purchase of hardware and components, set up of functionalities, personalisation of client data, delivery and after-sales service). With 8 million bank cards personalised in 2012, we rank first in the French market.

Payment terminals. our solutions for banks and large remitters cater to the different forms of commerce and payment collection (mobile or sedentary). light ept technology offers functionalities in terms of both marketing (payment in several instalments, affinity programmes, etc.) and accounting (transaction reporting). one of our major innovations in this area is the MultiService terminal or MSt, which can be used to run a set of banking services remotely. the MSt enhances security, reduces maintenance costs and facilitates management, and constitutes a real lever for developing your business.

ATMs. although we operate throughout the atM channel (back office, front office, interbank processing), our offering is designed to allow clients to choose the particular solutions suited to their needs and system. our new, state-of-the-art atM platform is functionally rich, highly configurable and fully multi-bank,

Our solutions

Christian Jacques,

Head of Bank Payment Flows, LCL.

“We decided to entrust crédit agricole cards & payments with a large part of our card systems processing. to stand out from the competition, LcL not only needs to offer clients the lowest costs possible, but also ex-pects flawless levels of service. this latter factor can only be ensured by our payment services provider’s ability to invest regularly in it systems. in this respect, the fact that we are one of a cluster of banks that work with crédit agricole cards & payments is a substantial advantage.”

With 2,077 commercial offices and 6.3 million clients, LCL is a major player in the retail banking arena. LCL benefits from an array of Crédit Agricole Cards & Payments services in the card systems and pay-ment and exchange fields, encompassing the SWIFT, Core and Target2 platforms, correspondent banking and ATM management.

Philippe Moiroud,

Chief Operating Officer, HSBC France.

“We opted to use the payment services of another large french bank in order to reap economies of scale. after launching an invitation to tender for the contract, we were convinced by crédit agricole cards & payments’ proposal. Given our extensive processing volumes, the proposed solution obviously needed to be highly competitive and capable of delivering the ever more nu-merous and complex functionalities demanded by our clients. crédit agricole cards & payments’ commitment to invest sizeable sums in its payments platform over the coming years ensures we can respond to our clients’ needs, both now and in the future.”

HSBC France is a subsidiary of the HSBC Group, whose aim is to be-come the world’s leading international bank. HSBC France chose Crédit Agricole Cards & Payments in 2012 to furnish high-volume payment processing services for its 823,000 retail and 116,000 corporate clients.

Cash management. our solutions allow companies with several sites in France, europe or around the world to centralise financial information from different accounts into a single access point, thereby simplifying their cash management function.

Our solutions offer all the components needed

for banks and large remitters

to satisfy and retain their individual , retailer and corporate clients.

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SwIFT and SwIFTNET. With its three parallel production lines, our SWIFt platform is the market’s most efficient. It uses SWIFtnet to transmit settlement messages between banks, and files between banks and their business customers 24 hours a day. Some 70 million SWIFt messages transited via the platform in 2012, or 70% of those for the Crédit agricole Group.

Centralisation of high-value international transfers. We centralise interbank transfers exceeding 800,000 euros. these transfers transit via the target2 (SWIFt) system. the platform verifies each bank’s balances in real time with the central bank, then authorises exchange and instantaneous settlement.

PAyMENT MEdIA SECURITy

Preventing and fighting fraud. We offer a wide range of solutions for fighting bank card fraud and protecting retailers and card holders. our platform uses its ability to process 1,000 transactions a second to cross-check information and conduct real-time analysis of individual bank card usage. Suspected fraud can therefore be detected very early, thus enabling the bank to warn the card holder and take appropriate measures. In addition to cutting-edge software, our solutions are underpinned by a team of experts in fighting fraud.

Electronic certificates and signatures.

our status as a licensed “certification authority” in France authorises us to deliver electronic certificates along with the associated technical support. We offer two types of certificates, namely the Ca-certificate, used for executing electronic procedures with the French administration (tax/Vat declarations, contract tenders) and the Ca-certificate +, which fulfils recent e-administration requirements. We also offer certificates for electronic signatures, such as Ca-Secure (exchanges between companies and banks), Ca-Server (communications between It servers) and the ephemeral Certificate (online contracts).

Jean-Pierre Michalowski,

Deputy Chief Executive Officer in charge of operations, IT and organisation, CACEIS.

“crédit agricole cards & payments provides us with a ro-bust solution capable of handling extensive volumes in a seamless manner. this ability ensures we can meet our key requirement of delivering a transparent service to our own partners, clients and networks of depositories. the process of change in financial markets has not come to an end and is actually gaining pace. We at caceis are therefore glad to know that we can call on crédit agricole cards & payments at any time and rely on its ability to innovate and adapt to help us overcome challenges arising in our business.” CACEIS is an asset servicing specialist present in 10 countries and focusing on a client base of institutional investors, investment managers and large corporations. As Europe’s leading depository bank and fund administrator, and the world’s ninth largest custodian, CACEIS leverages the benefits of Crédit Agricole Cards & Payments’ services.

A client-focused

organisation

and reactivity. once a month, the Client Service department provides users with a set of quality-monitoring indicators (availability rates, compliance with deadlines, etc.). these indicators provide proof of our ability to respect our commitments and are enshrined in service-level agreements.

High quality. We measure the reliability of our services every day, in terms of such criteria as the incidence of card rejections, respect of timescales for sending cards, platform availability and compliance with cut-off times. the data collected is compiled into reports that are sent to clients on a monthly basis.

A dedicated contact for each client.

each Crédit agricole Cards & payments client has access to a single point of contact – the client manager – dedicated to dealing with your needs and future requirements. He/she is in charge of our business relationship and defines the methods of collaboration best-suited to your needs.

Locally-based client service. the Client Service department manages day-to-day relations with payments platform users. the department handles user requests in tandem with the operational teams concerned and ensures maximum conditions of accessibility, availability

New social and environmental (SER)

commitments

we launched our “green card” approach in June 2013 by introducing a unique recovery and recycling mechanism for our stock of bank cards in circulation. Our card manufacturing processes have also evolved so as to prioritise the use of biodegradable organic plastic. By 2017, all cards in circulation will be manufactured in an environmentally-friendly manner.

11 The demands related to the advent of SEPA

have naturally led us to consolidate

our service-based approach and cement our locally-based links with clients. in 2012,

these efforts involved the launch of a new organisation and processes that together

guarantee high-quality service.

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Head of the publication: Jean-luc pothet responsible for the editorial line: Hervé Gachen

Chief-editor: Guillaume Irigoyen Design-execution:

Crédit agricole Cards & payments Head office: 83, boulevard des Chênes

Bp 48 – 78042 Guyancourt Cedex Business unit: 90, avenue lanessan

69410 Champagne-au-Mont-d’or