|ATM DEPLOYERS SPEAK OUT ON EMV: Deem business case ‘murky,’ worry about first deadline|
Financial institutions and independent entities that deploy ATMs have expressed a general uneasiness about industry preparedness, as well as uncertainty about the potential benefits of EMV migration, according to an ATM Industry Association (ATMIA) survey. The survey covers a broad cross-section of the industry, from financial institutions and independent ATM deployers to service providers and network processors.
Although almost 40% of respondents say they have been fully briefed regarding the April 2013 liability shift announced by MasterCard, only 10% feel they know card association requirements and roadmaps “very well.”
Other results indicate a widespread perception that information about costs and timelines has been insufficient. Fewer than 5% believe they will be ready for the first-prescribed deadline in April 2013.
Due, at least in part, to this lack of information, the business case for EMV migration remains murky. Eighty-one percent of respondents believe the costs of EMV in the United States will outweigh the benefits. The prospect of incorporating new mobile or contactless technologies into an EMV upgrade is attractive, but not enough to persuade a majority that it will make a significant difference.
In light of this information, ATMIA notes, it’s probably not surprising that most of U.S. industry lacks a roadmap for EMV migration—only 26% of respondents have one in place. About 57% still believe that using positive incentives to migrate, rather than the negative incentive of liability shifts, would accelerate the process.
[This article was posted on July 17, 2012, on the website of ABA Banking Journal, www.ababj.com.]
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