Tuesday, January 31, 2012
Visa's plan for EMV adoption in the United States rewards merchants by removing the requirement to annually validate their Payment Card Industry (PCI) Data Security Standard compliance if they implement EMV technology and meet certain other requirements. Visa merchants that have not adopted EMV technology and standards by Oct. 1, 2015, will be liable thereafter for any counterfeit POS card-present counterfeit transactions they accept.
MasterCard spokesman Seth Eisen confirmed MasterCard will, with some nuance, be implementing the same incentive and reward program as Visa Inc. "MasterCard is offering PCI audit relief," he said. "However, what MasterCard will do is take it a step further and provide incentives as merchants reduce their exposure to account data loss."
Eisen said MasterCard is not instituting a liability shift per se, though merchants who are counterfeit card victims will be held liable if they do not have EMV technology in place after the industry deadline. He added that MasterCard characterizes its program as a "liability hierarchy" that rewards issuers and merchants who pursue the EMV methodology.
"We have introduced a framework that accommodates a variety of options, including EMV and other advanced technologies, while encouraging increased security and increasingly making payments smart, safe and secure," he said. "Issuers and merchants will have the flexibility to manage business and technology decisions to deliver on their individual goals and objectives.
"They may decide to implement chip and PIN, chip and signature or another form. In the road map, we've put a liability hierarchy in place that encourages greater security with both the issuer and the merchant." He added that MasterCard will offer "real financial relief to merchants in the form of reduced Account Data Compromise exposure for the adoption of both EMV contact and EMV contactless functionality on POS terminals. We will also offer PCI audit relief to ensure consistency across the industry." MasterCard's EMV plan calls for working with acquirers to have the company's EMV infrastructure in place by April 2013. The company said it supports the need for the payments ecosystem to be aligned regarding the implementation of EMV standards in the United States.
MasterCard said it backs "the current industry timelines" set by Visa for EMV implementation: retail merchants have until October 2015 to implement EMV or face the liability shift; petroleum customers have until October 2017 to make the transition.
"Our road map represents a transformational shift in the approach to payments and is not simply about EMV, chip and PIN," Chris McWilton, MasterCard President of U.S. Markets, said. "We're focused on readying the ecosystem to drive future innovation and provide new consumer experiences to enhance the value of electronic payments."
MasterCard said it will be providing additional information soon. More information can be obtained in the meantime at www.mastercard.us/mchip-emv.html . 
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