We value your business!

Welcome to our Merchant Services newsletter. Citizens & Northern Bank would like to thank you for being such a valued merchant customer. We are grateful for the relationships we have built with our business partners and appreciate the level of trust we’ve earned. Local businesses like yours have such an important role in the community and are vital to creating opportunities for growth. At Citizens & Northern Bank, we take pride in our long history as a local, independent community bank. From the very beginning in 1864, we’ve been committed to the businesses and families in our local communities. By providing needed funding for growth and contributing to local charities, we are honored to play a part in enhancing the lives of our neighbors in the communities we serve.

In This Issue Who’s Calling?

Page 1

Protect Your Customers

Page 2-3

What’s New?

Page 4

Upgrade Info

Page 5

Member FDIC

We value our local partnerships and believe it's our role to help your business thrive.

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[1] Telephone, Email and In Person Contacts: Who’s Really Calling? Many businesses are receiving visits, calls or emails from merchant companies regarding pricing and/or compliance. They identify themselves only as "merchant services" and try to gather confidential information from businesses. They often let the merchant assume that they are their current processor. They use threats of non-compliance or promises of too-good-to-be-true pricing to gain access to information. Some merchants have even been switched to new merchant processors without understanding their actions. When we reach out to our merchants we will always identify ourselves as Citizens & Northern Bank. If we request that anyone contact you directly from our processing company, they will inform you that they are calling on our behalf. If you have any question about a call you receive please contact us. We are happy to review any price quotes and check your compliance status. In order to avoid early termination fees, please contact C&N prior to making a processor change.

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Citizens & Northern Bank representatives will always identify themslves as C&N. Don’t be fooled by callers who simply identify themselves as “merchant services”.

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[2]

Card Security: Your Customers Depend On You Trust is an essential element of customer relationships. When it comes to security, your customers trust you to protect the personal information they share with you. When data is exposed, it puts your customers and your reputation as a business at serious risk. EMV chip technology combined with PCI Security Standards offers a powerful combination for increasing card data security and reducing fraud. What they are – Fraud protection and data security EMV chip technology uses secret cryptographic keys to help protect against fraud at the point of sale and make payment cards more difficult to counterfeit. PCI Security Standards are security controls for making sure that a customer's card data is kept secure throughout the entire transaction process. How they're different – Authentication technology vs. data security controls

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EMV chip transactions utilize authentication technology for the point of sale part of the transaction when the physical card is actually present. When this chip is embedded on a card, it helps ensure the card being used is real and that it belongs to the person using it. It drastically reduces the chances of your business accepting lost, stolen or counterfeit cards.

When data is exposed, it puts your customers and your reputation as a business at serious risk. PCI Security Standards are security controls to protect the cardholder's confidential information on payment cards, not just at the moment the card is swiped or tapped, but all the way through the transaction process. They also apply when payments are made online or via telephone, where the card is not present, to make sure your customers' card data is kept safe. See how EMV chip and PCI Standards work together - next page.

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[3] Protecting Your Customers: A Layered Approach The EMV chip provides an additional level of authentication at the point of sale that increases the security of a payment transaction and reduces chances of fraud. Once the card is entered into the merchant's system, the cardholder's confidential information is transmitted and stored on their network in a clear, easily accessible form, meaning it's vulnerable for attack and use for fraud by criminals in online and other channels. This is where PCI Standards come in. On top of EMV chip at the POS, they offer protections for the POS device itself and provide layers of additional security controls for businesses to use throughout the transaction process and across payment channels to keep card data safe - such as patching systems, monitoring for intrusions, using firewalls, managing access, developing secure software, educating employees, and having clear processes for the handling of sensitive payment card data. For more information: https://www.pcisecuritystandards.org

PCI Standards offer protections for the Point of Sale device itself.

EMV chip reduces chances of fraud by providing an additional level of authentication at the point of sale.

When used together, EMV chip and PCI Standards are a powerful combination to increase security and reduce fraud.

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[4] Check Out What’s New! Contactless payment systems are credit cards and debit cards, key fobs, smartcards or other devices that use radio-frequency identification for making secure payments. The embedded chip and antenna enable consumers to wave their card or fob over a reader at the point of sale. As with all payment devices, contactless cards have a number of security features. Contactless runs over the same chip and PIN network as normal credit and debit card transactions, there is a payment limit on single transactions Contactless debit and credit transactions are protected by the same fraud guarantee as standard transactions. In order to check that a contactless card has been delivered to the authorized card holder, the contactless part of the card will not function until a standard chip and PIN transaction has been executed. Under fraud guarantee standards U.S. banks claim to be liable for any fraudulent transactions charged to the contactless cards. However, banks are not liable for the identity theft that the RFID card can encourage.

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Apple Pay is a mobile payment and digital wallet service by Apple Inc. that lets users make payments using a multitude of Apple mobile devices. To keep transactions secure, Apple uses a method known as "tokenization," preventing actual credit card numbers from being sent over the air. Apple also secures payments using Touch ID in the iPhone 6 and skin contact with the Apple Watch. So with Apple Pay, instead of using your actual credit and debit card numbers when you add your card, a unique Device Account Number is assigned, encrypted, and securely stored in the Secure Element, a dedicated chip in iPhone, iPad, and Apple Watch. These numbers are never stored on Apple servers. And when you make a purchase, the Device Account Number, along with a transaction-specific dynamic security code, is used to process your payment. So your actual credit or debit card numbers are never shared by Apple with merchants or transmitted with payment.

New technology is constantly changing the way payments are made.

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[5] C&N Merchant Terminal Upgrade Information The following terminals support EMV transactions: • Verifone Vx520 • Ingenico ICT220 & ICT250 If you already have an EMV capable device, we will reach out to you to arrange activation as soon as our processing company notifies us that the service is active. If you do not have one of the terminals listed above and would like to upgrade your terminal to include EMV or Contactless capabilities, Citizens & Northern has several options available. We are able to offer discounted pricing along with simple payment plans. Please contact us for details.

Are you ready to upgrade your terminal?

Non-Traditional Processing Options In addition to our standard phone line or internet terminals, we have a variety or processing options available including: • Online processing through your website. • Internet processing through a virtual terminal (log in on your computer). • Point of Sale Processing (we can link to most point of sale systems). • Pay at the Pump (for non-branded fueling stations). • Mobile processing through your smart phone or tablet. • Dial Pay (for small volume, call in transactions through any phone). If you aren’t sure what option would work best for you, give us a call and we will help you decide. C&N values your business and we’re proud to offer local service and support for all of our business customers’ needs. If you have any questions or would like more information please contact a member of our Cash Management Team. Chrissi Copp, CTP Cash Management Relationship Manager 570-723-2173 [email protected]

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Reneé Tevlin Cash Management Sales & Product Assistant 570-724-0239 [email protected]

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