MasterCard has now joined Visa in launching new initiatives to accelerate EMV adoption among U.S. merchants. The new EMV chip terminal testing and certification program covers acquirers and value-added resellers (VARs). More than 70% of all U.S.-issued MasterCard branded consumer credit cards are now chip cards.
MasterCard operates a chip terminal testing and certification process used by merchant bank acquirers and value-added resellers (VARs) before terminals go live at checkout. The new program maintains terminal testing and certification quality while easing in-store terminal activation by empowering acquirers and VARs as follows:
• Acquirers will have more responsibility and flexibility for terminal testing as a part of their own internal processes and schedules. Acquirers can now follow recommendations and use MasterCard terminal testing procedures or they can choose alternative testing processes and tools that support the integrity of their existing procedures. MasterCard has also cut the number of needed tests by 58 percent, minimizing mandatory tests and allowing acquirers to use their discretion and expertise in deciding when terminals are ready for deployment.
• VARs will receive more and dedicated resources to help accelerate terminal deployments. The new resources will help VARs navigate terminal configurations, test processes and ramp up in-field issue resolution. For example, if the cardholder experience is impacted by a terminal, documentation will exist to assist in resolving the issue in a timely manner.
• Acquirers and VARs will benefit from published guidelines on standard terminal test configurations which will improve the testing cycle and simplify testing processes. Standard terminal configuration packages will be available for certain industry segments, such as quick-serve restaurants and big box retailers.
The purpose of the EMV transition is to drive counterfeit card fraud out of the U.S. market. MasterCard has successfully assisted EMV migrations in approximately 150 countries and sees the current U.S. EMV migration and chargeback levels to be consistent with other markets, following the implementation of a liability shift.
MasterCard is adding more intelligence on its network to minimize chargeback costs to merchants who have not yet transitioned to EMV.
The MasterCard network now has checks and blocks to ensure that chargebacks follow the liability shift guidelines. For example, the system prevents invalid chargebacks for fraud occurring at ATMs and automatic fuel dispensers where liability shifts do not go into effect until October 2016 and October 2017, respectively.
MasterCard has policies in place that limit merchant exposure to excessive chargebacks on fraudulent accounts. These limits are applicable globally, for all types of fraud, including in store and online. MasterCard continuously evaluates thresholds related to these policies to ensure a balanced payment ecosystem.
MasterCard says chip-active merchant locations have increased to 1.4 million, up 240% since October 1, 2015. This number includes 1 million chip-active local and regional merchants, a 170% increase since the liability shift.
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