Processor Guidance Important to FI EMV Migration (April 27, 2015)
The Oct. 1, 2015, date for EMV compliance, when liability for counterfeit card transactions at the POS shifts to parties that haven’t adopted the chip card standard, is less than six months away and many financial institutions are finding the effort daunting, according to a study by Fiserv Inc., a Brookfield, Wis.-based technology provider.
More than one-fourth of financial institutions are undecided about the details of their migration, with one-third unsure about their company’s timeline for card replacement—pointing to the need for guidance and direction. Financial institutions are looking for expertise and information regarding costs, timing and program components, according to the survey. Nearly 70 percent of respondents said they would make decisions with some guidance from their processor, and 26 percent said they’d follow their processor’s recommendations.
The study also examined debit card portfolio migration with 63 percent of FIs saying they’ll migrate their entire debit portfolios, 28 percent still undecided, 3 percent planning to issue EMV cards to select consumer segments and 5 percent reporting “other.”
“The issue is further complicated by cards that are compromised, prompting reissuance of a large number of cards,” Jamie Topolski, Fiserv director, alternative payments solutions, wrote in a blog on the company Website. “While the number of reissues in the coming year will depend on cards reissued due to compromise, financial institutions should begin replacing magnetic stripe cards sooner than later.”
You’ll find out more about the U.S.’s EMV migration in our upcoming issue of Pay Magazine out next month.
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