Now is the time to review! EMV implementation deadline is looming
As financial institutions and consumers continue to deal with the effects of onerous security breaches that have hit major retail, restaurant and hospitality businesses in the last year or so, the push for integrating EMV (Europay, MasterCard and Visa) cards into the marketplace has gained momentum. However, according to payment industry estimates only a fraction of credit and debit cards in the United States are enabled with the more secure computer chip technology that provides superior card fraud protection than the magnetic-strip cards that are used by the majority of consumers.
That is likely to change beginning October 15, 2015, when new credit and debit card standards will go into effect that will change fraud liability expectations for card issuers and retail businesses. And while the new compliance standards won’t be mandatory, liability for fraudulent transactions will be borne by the card issuer or retail business that has not upgraded its cards to include the “chip and pin” technology.
According to the Payments Security Task Force, the transition to the new EMV technology is expected to accelerate with more than 575 million chip-enabled cards anticipated to be in the hands of U.S. consumers by the end of 2015.
Card brand contract agreement review can lead to savings and better terms
For banks and credit unions considering the cost involved to migrate from their current magnetic strip cards to the new EMV technology, savings and increased revenue opportunities can be achieved from a review of their debit card brand agreement.
Typically, most financial institutions remain with their original debit/credit card provider due to the costs involved in re-issuing new cards from a different vendor. However, with the upcoming integration to EMV technology, a review of the card brand contract agreement can give your financial institution the opportunity to get better contract terms, including:
