Thursday, July 4, 2013
Half of processing FIs undecided on an EMV strategy
A survey of card processing financial institutions (FIs) by The Members Group found that 62 percent believe they need to develop an EMV strategy to reduce fraud losses, meet the liability-shift deadlines set by card networks, or to meet the needs of cardholders who travel abroad.
Only 37 percent of respondents said their plan includes migration to EMV cards before October 2015, the month Visa Inc. and MasterCard Worldwide will shift fraud liability to the least secure entity in the transaction chain. Another 52 percent were undecided about their implementation timeline. Brandon Kuehl, Product Development Architect, expects most of the undecided FIs to solidify their strategies within the next 12 months.
Some 14 percent of TMG's clients cite travelers as the primary reason their institutions are considering issuing EMV cards. Clients currently implementing EMV are doing so to provide a better customer experience, especially for cardholders who travel frequently, according to Kuehl. Many unmanned kiosks in international locations accept only chip and PIN cards, creating a challenge for mag-stripe cardholders.
Editorial Note:
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