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to the 1980s, when card brands tried to make credit card George Sarantopoulos, incoming NAC Board Chairman,
transactions equivalent to cash. These campaigns were President and Chief Executive Officer of Access One
done relatively quietly, with little fanfare. Consequently, Solutions/Access One ATM concurred. "The bankruptcy of
very few states can recall why surcharging was banned in South Korean shipping company Hanjin has disrupted the
the first place." supply chain, leading to a massive backlog, unavailability
and surge pricing of EMV kits in the market," he said.
No-surprise guidelines "Mastercard should understand that and give some relief
to the [ATM] ISOs who have bought into EMV and are
Surcharging compliance guidelines became effective Jan. doing their best to implement it. Additionally, processors
27, 2013, following a class action settlement by retailers are having a learning curve with integrating EMV with
against Visa Inc. and Mastercard. The guidelines specify ATM terminals."
criteria for qualifying transactions, including mandatory
signage and disclaimers for participating merchants. For NAC panel probes issues
example, merchants may surcharge credit cards, but not
debit or prepaid transactions. Merchants are also required "Based on the numbers I've seen, one fourth of ATMs will
to post point-of-entry and point-of-transaction signage and be EMV-ready on Friday [Oct. 21, 2016]," stated Deborah
specifically worded disclaimers on credit card receipts. Spidle, Director of EMV Solutions at Paragon Application
Systems. "This is not like ADA or Triple DES [previous
Varying state-by-state guidelines and restrictions can industry compliance mandates]. It will be self-enforced
make surcharge compliance a daunting process for and the chargebacks will start."
merchants doing business in multiple states, which has
prompted some ISOs and acquirers to explore ways to Spidle and Renard co-moderated a panel discussion on
simplify the practice EMV implementation at NAC's annual conference, held
Oct. 17 to 20 in Orlando, Fla. The panel included executives
"Transaction Services has automated the compliance from Visa, banks, equipment manufacturers and service
process, confirming that transactions originate in states providers. Executives who had weathered the POS liability
that allow it and that it meets all criteria," Leppek said. shift that became effective Oct. 1, 2015, urged ATM owners
"The solution can be implemented at the POS, a hosted and deployers to implement EMV quickly to avoid taking
payment page or as a direct integration tool." on additional liability.
ATM industry shifts Roger Myers, President, ATM Services at Switch Commerce
EMV into high gear LLC said, "You've never experienced that before and can't
imagine the millions in fraud incurred by big banks.
A global shipping crisis and other challenges have Update as quickly as you can. Don't let them push fraud
impeded ATM industry efforts to upgrade its on you; don't take their liability."
U.S. fleet in accordance with mandated EMV
(Europay, Mastercard and Visa) guidelines. Elizabeth Bohlen, Senior Vice President and Chief
The industry's attempts to delay EMV liability shift dead- Payments Officer of Sponsorship Services at The Pueblo
lines due to supply chain issues have been unsuccessful: Bank & Trust Co., has seen a spike in chargebacks since the
October 2016 deadlines for Pulse and Shazam networks October 2015 liability shift was instated. Some chargebacks
(Oct. 1) and Mastercard (Oct. 21) are now in effect. The were not even EMV-related, the bank's reports indicated.
Visa Inc. liability shift is set for Oct. 1, 2017. "Get ready for it, and work on each chargeback to make
sure they are what they say they are," she said. "Be diligent
In contrast to previous compliance initiatives, the EMV in what you see being debited. It was pretty bad the first
mandates could have severe consequences for noncompli- 60 days. It's not pretty."
ance that go beyond penalties and fines. Industry leaders
are urging card brands for leniency while warning ATM Implementation challenges
owners and deployers of threats and vulnerabilities.
Jason Kuhn, Vice President of Product Marketing and
The National ATM Council Inc. asked Mastercard to push Product Planning at Nautilus Hyosung America, said his
the EMV liability shift back to Jan. 2, 2017, citing the global company is working with the South Korean government
shipping crisis, which impacted member companies and to free up product and has bumped up production in
was caused by Korean shipper Hanjin Transportation Co. Korea and China to produce kits as quickly as possible.
Ltd. NAC Executive Director Bruce Renard said, "We have "The Hanjin crisis created a perfect storm," Kuhn said.
many members who ordered EMV kits in August. It's not "Of the approximately 70,000 kits we've shipped, not all
that they don't want to be compliant." are installed; some are installed but not configured with
the most current version of software. There's a lot more
involved to make sure [a kit] is properly configured."
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