Discover announced the next
milestone in its global EMV deployment: a comprehensive strategy and roadmap
that includes Discover Network, Diners Club International, PULSE, and Discover Card.
In alignment with U.S. EMV
migration timelines, Discover is introducing Fraud Liability Shift for Discover
Network (in the United States, Canada, and Mexico) and PULSE (in the United
States), effective Oct. 1, 2015, at point-of-sale terminals and Oct. 1, 2017,
at automated fuel dispensers.
This Fraud Liability Shift policy
will be a risk-based payments hierarchy that benefits the entity that leverages
the highest level of available payments security. As Fraud Liability Shift is
already in place for Diners Club International (effective Dec. 31, 2012 for
mandated participants), Discover will have one standard liability shift policy
in place across all networks by Oct. 1, 2015.
Starting October 2013, Discover
will also grant annual PCI audit waivers for merchants that process 75% of
Discover Network transactions via terminals supporting both contact and
contactless payments.
Discover card members also will
benefit from the enhanced security EMV provides, as Discover looks to gradually
start replacing its current cards with chip cards in the coming years, with
initial outreach to frequent travelers.
PULSE, a Discover Financial
Services company and a debit/ATM network, will capitalize on Discover's
EMV-deployment experience by using the D-Payment Application Specification
(D-PAS) to enable EMV transactions at the point of sale. In addition to
introducing Fraud Liability Shift, PULSE will require U.S. direct-connect
merchants and point of sale acquirer processors to support EMV data effective
Oct. 16, 2013.
Although PULSE's implementation of
D-PAS supports all cardholder verification methods, its U.S. implementation of
EMV is expected to feature broad support for online PIN-authenticated
transactions as the most secure cardholder verification method.
PULSE also is collaborating with
other debit networks and industry work groups to facilitate interoperability
among card brands and to enable merchants to route debit transactions
consistent with the requirements of the Federal Reserve's Regulation II.
"Our timeline to support chip-based
credit and debit transactions, in addition to our Fraud Liability Shift policy,
are critical milestones to helping make EMV a reality in the U.S.," says Diane
Offereins, president of Payment Services at Discover. "As with the Discover
mandate announced earlier this year, our approach to EMV enables participants
to select verification methods and transaction types that meet their
organization's needs."
http://investorrelations.discoverfinancial.com/phoenix.zhtml?c=204177&p=RssLanding&cat=news&id=1757400
[This article was posted on November 19, 2012, on the website of ABA
Banking Journal, www.ababj.com.]
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