Credit cards can be a sound launching pad for EMV

Early stage adoption of EMV technology in the U.S. is being planned in phases between now and 2017 with a significant part of the migration starting in 2015. For credit unions, the best strategy at this juncture is to be fully aware of the plusses and minuses of EMV technology and be ready when management – and the market – are ready.

The time to begin formulating an EMV launch plan is now and we believe the best place to start is on the credit side of the EMV standard. That’s because the uncertainty swirling around EMV deployment on debit cards does not extend to credit due to several factors. For those credit unions with credit portfolios, starting the EMV migration with credit cards is the prudent way to embark.

One of the main reasons credit makes more sense is because of critical issues associated with the Durbin Amendment and looming questions about how it will impact EMV debit card transactions going forward. Although EMV applications are debit/credit agnostic, regulations and network implications that affect debit are not.

Here are some of the key reasons why credit, particularly in light of Durbin, is the place to start for EMV implementation:

• For EMV debit transactions, Durbin requires two unaffiliated networks (e.g. PIN and signature) and merchant routing control. This is not required with credit.