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First MasterCard Chip Transaction Signals Readiness for Roll-out Across Canada

TORONTO, September 25, 2007 – A simple payment transaction made today at a Toronto-area spa and salon marked an important milestone in the introduction of chip cards in Canada. It was the first chip and PIN transaction made with a Canadian MasterCard® chip card in a real world retail location. The transaction was made with a BMO Mosaik® MasterCard card at Tresses Spa and Salon on a Moneris point-of-sale (POS) terminal.

The transaction demonstrates the advanced state of readiness for the roll-out of chip cards and devices. As a card issuer, BMO Mosaik MasterCard – the largest MasterCard issuer in Canada – is preparing for the phased introduction of chip cards to its cardholders. Moneris Solutions, Canada's largest processor of credit and debit card transactions, has been providing merchants across the country with chip-compatible point-of-sale systems to accept those cards. MasterCard Canada is working with card issuers, processors and merchants to provide expertise on chip implementation and to ensure the Canadian transition is made in the most efficient, cost-effective fashion.

A major market trial of chip cards will take place in Kitchener-Waterloo, Ontario, in a few months time and is a precursor to the national roll-out of chip cards.

“We’re looking forward to introducing all our cardholders to their new chip BMO Mosaik MasterCard cards over the next couple of years,” said Mike Kitchen, Senior Vice-President, Card and Retail Payment Services for BMO Bank of Montreal. “BMO customers value Mosaik MasterCard because it is a quick, safe and simple way to make purchases from anywhere in the world. By participating in Canada’s first MasterCard chip-to-chip credit card payment transaction, we are reinforcing with our customers that BMO remains at the forefront of ensuring that they can make purchases even more safely and securely than ever before.”

“Chip cards take payment cards to the next level of technology with greater capacity and enhanced security,” explains Kevin Stanton, President, MasterCard Canada. “The impact on consumers’ daily experience is minimal – entering a PIN instead of signing a receipt – but the benefit for the security of payments is great. And today we saw another significant milestone achieved with the first MasterCard chip and PIN transaction.”

“Moneris is at the forefront of bringing chip to the Canadian market,” said Jim Baumgartner, President and CEO Moneris Solutions. “We were among the first acquirers in Canada to be chip-certified by three payment brands and we already have more than 75,000 chip-compatible payment devices in the marketplace. We’re leading the roll-out for chip acceptance across Canada.”

The new chip cards carry a small computer processor chip with memory, logic and a configuration of software applications, significantly enhancing security. The chip holds information in an encrypted form and requires the use of a PIN (personal identification number) to complete the payment process. Canadian MasterCard cards will also continue to carry magnetic stripes in order to be compatible with non-chip POS terminals.

Credit and debit cards are being upgraded to chip in order to enhance the security of payments and particularly to protect the Canadian market from global fraud migration as chip rolls out in other countries. Already more than 70 per cent of payment cards issued in Europe are chip-enabled.

About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 16 billion transactions each year and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to

About BMO Mosaik MasterCard
BMO Mosaik MasterCard allows customers to build their own customized cards by choosing and paying for only the rewards, features and interest rate plan they want. Customers can also re-build their cards by changing the features as their needs change, without having to replace the card or apply for a new one.

Unlike other credit cards that offer a limited selection of pre-bundled options, Mosaik MasterCard lets cardholders choose from a variety of individual features, such as the AIR MILES Reward Program or a CashBack Reward Program, Travel Protection, Travel Medical, Concierge Service and either a No Fee or Low Interest Rate Plan.

Mosaik MasterCard card is accepted at more than 24 million locations worldwide.

About Moneris Solutions
As one of North America's largest providers of payment processing solutions, Moneris offers credit, debit, wireless and online payment services for merchants in virtually every industry segment and processes more than 2.3 billion transactions annually. Through its Ernex division, Moneris offers electronic loyalty and stored-value gift card programs. With more than 350,000 merchant locations, Moneris provides the hardware, software and systems needed to improve business efficiency and manage payments. For more information please visit

For further information, please contact:

Jennifer Reed
MasterCard Canada

Ralph Marranca
BMO Bank of Montreal

Riva Turner
High Road Communications (Moneris)