|Industry collaboration sought ahead of EMV migration|
MasterCard has proposed forming a cross-industry group to foster collaboration and alignment among networks, issuers, merchants, acquirers, processors, terminal manufacturers, card manufacturers, and others as the United States shifts to EMV (Europay MasterCard Visa) chip technology use.
MasterCard introduced the idea in January. It also pointed out the need to secure all channels, including the ATM, and expressed a commitment to delivering maximum benefits to consumers and the industry from EMV migration.
“We recognize that this next step toward a world beyond cash has raised a number of questions among our customers from baseline standards to timelines and implications,” says Chris McWilton, president, U.S. Markets, for MasterCard. “Industry collaboration has proven to be critical to the successful migration to EMV in other parts of the world. It’s our goal to bring the industry together in an objective forum. This will continue to move the United States forward and allow all to gain the maximum advantage from the upgrade to EMV.”
Industry partners, like Smart Card Alliance and TSYS, support the collaboration.
“We support the efforts to bring all parties involved in EMV together,” says Randy Vanderhoof, executive director, Smart Card Alliance. “It is critical that the industry come together to collaborate around key topics, to have a common framework and processes in place to ensure a successful upgrade of U.S. payments technology.”
A cross-industry group would focus on several key areas, including, but not limited to:
• Providing guidance on nonproprietary technical issues and standardizing the consumer experience.
• Creating a set of common terms, descriptions, and guidelines for EMV-enabled cards, devices, and terminals.
• Sharing and implementing best practices to simplify the implementation and consumer-education processes.
Specific details will be made available over the next few weeks, as the formal structure of the group is established.
[This article was posted on May 29, 2012, on the website of ABA Banking Journal, www.ababj.com.]
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