Debit & EMV
About 25% of U.S. debit cards – approximately 71 million cards – will be migrated to chip by the end of 2015. The percentage is expected to rise to 73% by the end of 2016 and 96% by the end of 2017.
MasterCard Announces EMV Personalization Validation
UL qualified its Collis EMV Personalization Validation Tool through MasterCard. Professional testing of personalized MasterCard EMV/PayPass cards is essential to ensure global card acceptance. In addition, debit MasterCard cards issued in the U.S. must support the MasterCard AID and the U.S. Maestro AID in order to fulfill unaffiliated network routing requirements mandated by Congress in…
MasterCard and PULSE Launch Common Debit EMV Solution
MasterCard and PULSE reached an agreement to allow financial institutions that issue EMV debit cards that participate in both the MasterCard and PULSE networks to use MasterCard’s common debit solution on those cards. U.S. debit regulations require that each debit card provide merchants and acquirers the opportunity to route debit transactions over multiple, unaffiliated networks. This is made possible for debit EMV cards through the use of common application identifiers (AIDs). Licensing MasterCard’s common debit AID will help support EMV chip adoption in the United States by enabling issuers to deploy EMV cards in compliance with this regulatory requirement. PULSE will use MasterCard’s common AID to process domestic ATM and POS transactions on behalf of issuers that participate in both PULSE and MasterCard, including those initiated with contactless-enabled devices.
First Data and MasterCard Partner to Advance Debit EMV
First Data and MasterCard announced an agreement in which First Data’s STAR® Network will participate in MasterCard’s common U.S. Debit EMV solution. This agreement provides a cost-effective solution and accelerates the ability for EMV functionality to be implemented across the U.S. EMV/ chip cards better protect account information from fraud because they have dynamic data, rather than the static data stored in the magnetic stripe. By working together, MasterCard and First Data will deliver enhanced choices in how debit card issuers identify and apply multiple network relationships to ensure Regulation II compliance in a cost-effective way. Merchants and acquirers will continue to route transactions as they prefer, without costly host systems reprograming.
Pulse to Accept EMV Visa Debit
Visa and PULSE signed agreements to enable financial institutions that issue EMV debit cards on both the Visa and PULSE networks to use Visa’s common debit solution. Visa’s common application identifier (AID) supports U.S. debit regulations requiring the ability to route transactions over multiple, unaffiliated networks. A common debit solution shared among all participants will help to accelerate EMV chip adoption in the United States and provide a uniform platform that will enable network innovation. PULSE will use functionality on Visa’s common AID to facilitate all types of point-of-sale debit transactions on its network. In addition, the agreement enables PULSE to facilitate domestic ATM transactions on its network and provides for issuer choice in the routing of ATM transactions.
Fiserv, MasterCard Advance Debit EMV Adoption
Fiserv and MasterCard agreed to make MasterCard’s U.S. common debit EMV solution available for the Accel debit network. MasterCard issuers receive flexibility to select and implement network relationships, while merchants and acquirers will continue to route transactions as they prefer, without introducing multiple applications and complicated technology upgrades. MasterCard was the first network to offer its proprietary technology to other U.S. debit networks in an effort to support the migration to EMV and enable the routing of PIN debit transactions over multiple, unaffiliated networks. This decision allows acquirers to brand transactions originating from the Maestro AID (application identifier) for all debit networks that elect to participate. The MasterCard U.S. common debit EMV solution is consistent with the EMV Migration Forum’s recommendations, including a single common debit application identifier (AID) and single application on each card, as well as multiple ways to verify the cardholder’s identity.
Secure Remote Payment Council Deploys Chip and Pin Group
The Secure Remote Payment Council (SRPc) formed a working group to define and adopt a POS and ATM solution for chip and PIN acceptance for PIN debit networks. This will provide interoperable adoption of chip and PIN debit payments to the industry, while supporting innovation, choice, and the proven track record of PIN security in reducing payment fraud. The working group includes leading PIN debit networks STAR®, SHAZAM®, PULSE®, NYCE®, AFFN®, ACCEL/Exchange®, ATH®, Credit Union 24®, CO-OP Financial Services® and Jeanie®.
Green Dot Acquires Bonneville Bank
Green Dot completed its previously announced acquisition of Bonneville Bancorp for $15.7 million in cash. With this, the bank’s official name will change to Green Dot Bank, but the bank will continue to do business and serve its loyal customer base under the name Bonneville Bank at its current Provo, Utah location. Green Dot will contribute approximately $14 million in cash to the bank to provide an initial capital base for its expanded operations.
Lexcel Deploys Auto-Network Testing to Curb Durbin Costs
Lexcel Solutions debit payment testing applications for the financial industry will aid debit card issuers and marketplace payment providers following the recent rules enacted by the Durbin Amendment. These require banks with assets of $10 billion or larger to certify with two unaffiliated debit card networks by October 1 and issuing banks time, effort and resources to accomplish the certification process. The fee cap of 21 cents per debit transaction shines on Lexcel’s value in controlling network connectivity costs. To assist in this effort, Lexcel has updated its Lexcel Network Simulator with all payment network rules and transaction types to accommodate automated debit network testing demands and reduce the time to certify and connect with additional networks.
Lexcel Offers Automated Network Testing
Lexcel Solutions debit payment testing applications for the financial industry is set to aid debit card issuers and marketplace payment providers in lieu of the Durbin Amendment. The amendment requires banks with assets of $10 billion or larger to certify with two unaffiliated debit card networks by October 1, which will require issuing banks time, effort and resources to accomplish the certification process and a fee cap of 21 cents per debit transaction. Lexcel has updated its Lexcel Network Simulator with all payment network rules and transaction types to accommodate automated debit network testing demands and reduce the time to certify and connect with additional networks.
NYCE & China’s UnionPay Cross-Network
NYCE signed an agreement with China UnionPay bankcard association to allow cardholders reciprocal access to ATMs in both networks. NYCE Payments Network is a leading U.S. electronic payments network and an FIS company. The reciprocal agreement will allow participating NYCE ATM cardholders to conduct ATM withdrawals and balance inquiries in China. In addition, more than 2.6 billion UnionPay cards will have access to the more than 360,000 NYCE network ATMs. NYCE and UnionPay will work together to create future opportunities for extended payment services for their respective cardholders. NYCE delivers its clients real-time fraud monitoring and management, text and mobile banking applications, Internet debit and person-to-person (P2P) payment capabilities.
NYCE Network’s 1H/11 Sees Record New Participants
FIS’ NYCE Payments signed a record number of new multi-year participant agreements throughout 1H/11 for an significant increase over the year ago period. NYCE provides consumers secure, real-time access to funds through its extensive ATM network and wide acceptance at the point-of-sale (POS) by merchants throughout the U.S. NYCE cardholders can currently use their cards at more than 360,000 ATMs and 2 million retail locations in the U.S., with international ATM expansion underway. The independent, unaffiliated PIN-based debit network focuses on delivering net interchange parity with signature debit options and provides a value-added solution to financial institutions.