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| MasterCard to expand liability shift to ATMs |
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MasterCard will expand its U.S. electronic payments roadmap to include the ATM channel. Beginning in October 2016, a liability shift hierarchy will be introduced for ATM transactions in the United States, as part of an effort to globally align the use of EMV technology to prevent and manage fraud. EMV (Europay, MasterCard Visa) is the chip-card standard first introduced in Europe. As part of its roadmap unveiled in January, MasterCard identified the need to further secure all channels by means of the implementation of EMV standards in the U.S. The company wants to foster collaboration to drive a smooth migration and advance the U.S. electronic payments system to deliver maximum benefits to consumers and the industry. Under the terms of the roadmap, the payments company established a policy whereby merchants that do not take the necessary steps to accept EMV transactions will be liable for any resulting fraud from non-EMV cards after a certain point. The new announcement extends this "liability shift" to all MasterCard-branded products across all transactions initiated at U.S. ATMs. "This continues our commitment to look holistically at the next generation of U.S. payments," says Mike Weitzman, Group Executive, U.S. Markets, MasterCard. "As other markets have migrated to EMV, we have seen fraud shift to the least secure channel. By establishing this liability shift, we're advancing efforts to prevent and reduce fraud. At the same time, by making the announcement today, we're providing our issuers, acquirers, and ISOs flexibility and sufficient time to manage their ATM technology decisions." Last fall, MasterCard announced the extension of its existing EMV liability shift program for inter-regional Maestro ATM transactions effective 2013. This recently announced program expands liability for U.S. ATM operators to include all EMV-enabled cards used at U.S. ATMs. Analyst firm Aite Group estimates that fraud costs the U.S. card payments industry an estimated $8.6 billion every year. In addition, the firm's research shows that many industry executives agree that switching to the EMV standard can greatly help to mitigate card fraud, while minimizing risk and maximizing profitability. "An upgrade of existing U.S. ATM systems to EMV is a necessary next step in the evolution of financial institutions' tactics to keep pace with fraudsters," says Julie Conroy McNelley, research director with Aite Group. "The industry executives we talk to are bullish on EMV migration to reduce their potential vulnerability from mag stripe fraud and make way for future innovations that can help enhance the value of electronic payments to consumers." MasterCard was part of the original group that created the EMV standard and has supported the successful migration to EMV-based payments in every major market globally to date. The company's continued investment in advancing these infrastructure standards has provided insights and expertise to guide the industry in advancing payments security and convenience. http://newsroom.mastercard.com/press-releases/mastercard-extends-u-s-emv-migration-roadmap-to-atm-channel/ [This article was posted on September 25, 2012, on the website of ABA Banking Journal, www.ababj.com.] Set as favorite Bookmark
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