Compliance: Visa Pleading for EMV
- Visa intends to fasten the adoption of EMV in the US. According to this player, opting for dual mag-stripe/smartcard cards could help prepare the infrastructures required for NFC deployment. Large distribution brands are also getting involved in this project (McDonald's, Nordstrom, etc.).
- Three initiatives have been announced:
- Expanding the Technology Innovation Program (TIP) to US merchants starting 1st October 2012: merchants performing at least 75% EMV –contact or contactless– transactions will no longer have to validate their compliance with the PCI-DSS every year (with regard to Visa);
- Building processing infrastructure for chip acceptance from 1st April 2013;
- Establishing a Counterfeit Fraud Liability Shift effective end 2015: US liability shift for domestic and cross-border counterfeit card-present point-of-sale transactions from issuing banks to acquiring ones (end 2017 for gas stations). This measure should lead acquiring banks to push the adoption of EMV.
- Several analysts insist on Visa’s will to favour the development of contactless mobile payment (Visa payWave) before fraud prevention measures.
- Meanwhile, they mention the UK, where implementing EMV has contributed to significantly decrease card present fraud (-75 to 80%) whereas CNP fraud is on the increase.
- Also, one by one, US banking players commit to propose EMV compliant cards to their customers as a means to favour customer satisfaction due to their international acceptance (notably in Europe).
See May, June and July 2011 Payments Insights
- EMVCo, reports that 1.2 billion EMV cards were in circulation at the end of the first quarter 2011, for 18.7 million compatible POS terminal (that is to say 40.1% of all payment cards and 71% of the installed POS acceptance systems).
- Other mention high fraud figures. Javelin Strategy & Research, as well as Oracle, remind that mag-stripe cards are easily counterfeited and do account for a large portion of these losses. In the US cheque and card fraud represent about 30 billion dollars. Those pleading for the end of cheque and the adoption of EMV claim these measures could allow 50%. Saving.
- This trend does not only limit itself to the US. For instance, in order to enhance the overall security of payments, the Reserve Bank of India also recommends a nation-wide shift to EMV (among other measures).