|DON’T LEAVE HOME WITHOUT EMV: Amex charts U.S. chip/PIN course|
Late this year, American Express plans to begin issuing EMV-compliant cards in the United States. As part of the company’s strategy to advance EMV payments, it will work with other card companies to drive interoperability across the United States and other countries, and support chip-based technology for chip and PIN, chip and signature, contactless, and mobile transactions.
Following are Amex’s key policy requirements and dates, going forward:
• By April 2013, processors must be able to support Amex EMV chip-based contact, contactless, and mobile transactions.
• Beginning October 2013, merchants will be eligible to receive relief from PCI Data Security Standard reporting requirements if the merchants’ point-of-sale acceptance locations—where 75% of their transactions occur—can process Amex EMV chip-based contact and contactless transactions.
• Effective October 2015, Amex will institute a Fraud Liability Shift (FLS) policy that will transfer liability for certain types of fraudulent transactions away from the party that has the most secure form of EMV technology. U.S. fuel merchants will have an additional two years (until October 2017) before the FLS takes effect for transactions generated from automated fuel dispensers.
“The payments industry is continuing to evolve rapidly, and American Express recognizes the growing demand for chip-based contact and contactless payments in the United States,” says Suzan Kereere, senior vice-president and general manager, American Express Global Network Business. “We also fully recognize the complexities involved in migrating to EMV chip-based technology, and our first priority is to provide choice and flexibility for merchants and our card-issuing partners so they can adopt the EMV solution that best meets their needs.”
Kereere continues: “As a global payments network, we understand the benefits associated with EMV-based technology, and we are committed to continue enhancing security at the point-of-sale for both merchants and American Express card members.”
As an early adopter of EMV technology, Amex already processes millions of EMV transactions. It is one of four major payment organizations that are equity members in EMVCo, an organization committed to driving secure and interoperable payments globally for chip card transactions.
[This article was posted on July 10, 2012, on the website of ABA Banking Journal, www.ababj.com.]
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