“EMV is coming to the U.S.”
That was the title of an article we published two years ago.
And last summer—in the aftermath of high-profile, costly breaches at Target and other retailers—we wrote about data security and asked “Will EMV help?”
In our magazine and on our website, the topic of EMV (Europay, MasterCard, and Visa) chip cards has been a constant.
EMV represents the global chip standard. And by October 2015, if your credit unions’ cards aren’t EMV-enabled, you could be held liable for a greater share of fraudulent point-of-sale transactions, according to policies set by the major card companies.
Most credit unions have been developing their EMV strategy for years. Others are taking a “wait-and-see” approach. And some merchants won’t be EMV-ready with point-of-sale (POS) equipment.
That’s what you can expect during a “technology migration,” Dean Stewart points out in a new CUNA Operations, Sales & Service Council white paper. Stewart is senior director of self-service product management for Diebold Inc., a CUNA Strategic Services alliance provider.
It’s why the U.S. will see “dual-purpose” cards that contain both the chip and magnetic stripe.
“There will always be leaders and laggards,” Stewart says. “If the cards only contain the chip, they can’t be used in locations that haven’t converted and would be an inconvenience to members. In the U.S., there are approximately 13 million POS locations to convert. That will take time.”
Migrating to EMV chip cards is a payments step credit unions can’t skip, payments experts say. But as you move in one direction, keep your eye on what’s on the horizon: Apple Pay and other mobile/digital wallet solutions, tokenization, and near-field communication, for example.
CUNA will bring together the major players from the credit union industry to discuss latest payments trends at its second annual Payments Roundtable, June 1-2 in New Orleans.
Find more information at training.cuna.org/payments.
ANN PETERSON is editor in chief of Credit Union Magazine.