DES MOINES, Iowa (4/17/14)--The SHAZAM Network and Visa Inc. Wednesday announced an agreement that will allow SHAZAM Network issuers to use Visa's common debit application identifier (AID) for Visa- and SHAZAM-branded cards and transactions.
Visa offered the use of its common domestic AID and Visa Smart Debit Credit Euro-MasterCard-Visa (EMV) chip application, which supports U.S. debit regulations requiring the ability to route debit transactions over multiple, unaffiliated networks. By sharing this AID among all U.S. debit network participants, EMV chip adoption will meet the requirements of issuers, merchants, networks and U.S. regulation while maintaining global international acceptance.
"This agreement reflects nearly two years of industry engagement," said SHAZAM Chief Information Officer Terry Dooley. "SHAZAM is proud to have acted as a driving voice in the original SRPc chip-and-PIN working group and the Debit Network Alliance. The network has been active in the EMV Migration Forum, ATM Industry Association, National ATM Council and other industry forums. A collaboration that allowed for merchant and issuer routing choice for contact and contactless payments supporting PIN, no CVM, and signature was our goal, and we believe this agreement provides the terms to accomplish that goal."
Visa's common AID will enable point-of-sale debit transactions and domestic ATM transactions on Visa and SHAZAM-branded debit cards.
"It remains important for all U.S. debit card issuers to evaluate the business case and the industry as they begin to consider a migration to EMV," said Dooley. "Particularly for smaller issuers, including community banks and credit unions, a cost-benefit analysis that takes into account the institution's current and predicted fraud risk, as well as the potential return on an EMV investment, is a critical first step."