Aite Group analyst Julie Conroy McNelley said she has heard from multiple sources that, effective April 2013, MasterCard will require member bank ATMs to accept EMV cards.
“That is very aggressive, a blink of an eye in banking,” McNelley said Wednesday.
She acknowledged that “I have not gotten direct confirmation of this from MasterCard.” But she said Aite has heard this from multiple banking sources.
Added McNelley: “Reduced revenues in wake of [the] Durbin [amendment] will drive the U.S. to EMV. The financial institutions do not have the revenues to absorb fraud losses.”
EMV, she elaborated, will be embraced as institutions seek to push fraud down to as little as possible. “The revenue off the cards no longer can absorb the fraud hit,” said McNelley.
“MasterCard is trying to take a market-leading position,” said McNelley. “The EMV freight train is picking up steam.”
MasterCard had not responded to a Credit Union Times request for clarification at the time this story posted.
Visa Inc. last month announced it would be backing the use of chip-embedded smart card technology in the U.S.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
