The Princeton Junction, N.J., based EMV Migration Forum provided new guidance to the U.S. debit payments industry in a document to enhance their technical EMV debit framework.
The addendum to the industry-supported framework addressed contactless EMV debit transactions. The document provided an example to help financial institutions successfully achieve contactless multi-network transaction processing while preserving global interoperability using a U.S. common debit compliant EMV application configuration.
The EMV Migration Forum is a cross-industry body focused on supporting the EMV chip implementation steps required for payment networks, issuers, processors, merchants, and consumers.
“The EMV Migration Forum works at a high level to address challenges and provide resources that benefit the entire payments industry. Part of this means to add new resources to address industry questions,” said Randy Vanderhoof, director of the EMV Migration Forum. “The addendum to the EMV debit framework provides an example approach for terminal vendors, acquirers and merchants to successfully implement contactless and mobile EMV debit using the U.S. Common Debit AID.”
Topics addressed in the addendum included the following:
- Fundamentals of Contactless Acceptance. The framework defined in the EMV Migration Forum U.S. Debit EMV Technical Proposal is compatible with a contactless transaction when implemented on a dual interface EMV chip card or a mobile device.
- U.S. EMV Common Debit Compliant Issuance. Financial institutions considering issuance of mobile payment credentials or dual Interface EMV debit cards have the option to deploy a U.S. Common Debit compliant EMV application configuration.
- CVM Processing. Online PIN, Signature and No CVM may be supported as per the payment networks' specifications.
American Express, Discover, MasterCard and Visa announced their U.S. market roadmaps for supporting chip-based payments infrastructure in 2011 and 2012. Acquirer processor EMV readiness mandates are set for 2013 and liability shifts for managing fraud risk in a face-to-face environment are set for 2015.
In October 2014, President Barack Obama issued an executive order requiring chip and PIN technology for government-issued credit cards and upgrading point-of-sale terminals at federal buildings.
The Payments Security Task Force joined with the PCI Security Standards Council and the EMV Migration Forum to launch a chip education curriculum and pre-qualification program to help streamline and simplify the EMV testing and certification process.
In a an Experian/Ponemon Institute study, 59 % of respondents cited EMV chip and PIN cards as an important part of their organization's payment strategy. But, only 53% of believed chip and PIN cards will decrease or significantly decrease the risk of a data breach.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
