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Table of Contents

Lead Story

Elavon versus Cisero's dispute could have major repercussions

News

Industry Update

Will PayPal hit critical mass with recent deals?

Zappos.com hit with breach, lawsuit

Visa says PIN unnecessary for EMV in U.S.

A European perspective on U.S. EMV

Selling Prepaid

Prepaid in brief

N.J. unclaimed property ruling favors prepaid, sort of

nFinanSe, InComm wrangle over reload network

Views

The CPP exam - before, during and after

Steve Norell
US Merchant Services Inc.

Big changes ahead

Brandes Elitch
CrossCheck Inc.

Education

Street SmartsSM:
Putting the right tools into your tool kit

Bill Pirtle
C3ET Credit Card Consortia for Education & Training Inc.

Strategic planning nuts and bolts

Vicki M. Daughdrill
Small Business Resources LLC

Give your goals some oomph!

Adam Moss and Jeffrey Shavitz
Charge Card Systems Inc.

Turn no into knowledge

Jeff Fortney
Clearent LLC

Are your marketing materials compliant?

Peggy Bekavac Olson
Strategic Marketing

Company Profile

CSR - Compliance Solutions and Resources

New Products

A mobile app for Windows

Aircharge Windows Mobile
Cynergy Data LLC

Inspiration

You, too, can become a CPP

Departments

10 Years ago in
The Green Sheet

Forum

Resource Guide

Datebook

Miscellaneous

2012 Calendar of events

A Bigger Thing

The Green Sheet Online Edition

February 13, 2012  •  Issue 12:02:01

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A European perspective on U.S. EMV

A recent white paper issued by Dutch international digital security firm Gemalto N.V., a strategic partner of VeriFone Inc., gives a European perspective on the drive to introduce the Europay/MasterCard/Visa (EMV) chip technology to the United States. The free paper, titled The Migration to EMV Technology - EMV Implementation in the U.S., discusses the importance of Visa Inc.'s EMV push in the United States and looks at the consequences and costs of EMV implementation here for merchants and issuers.

VeriFone and Gemalto are working together on new chip-card solutions and technology for U.S. retailers and card networks.

Visa forces issue

The paper acknowledged Visa's effort to promote EMV. Visa said in 2011 it would bring its Technology Innovation Program (TIP) to the United States beginning in October 2012. Under the TIP program, eligible merchants will no longer have to validate Payment Card Industry (PCI) Data Security Standard (DSS) compliance in any year in which at least 75 percent of the merchant's Visa transactions originate from chip-enabled terminals.

To be eligible for this cost-saving TIP benefit, terminals must support both contact and contactless chip acceptance, including mobile near field communication technology. Merchants must also still comply with the PCI DSS.

"With this announcement from Visa, the United States payments landscape is no longer a future of magnetic stripe technology, but one of EMV chip technology and contactless and mobile payments," the paper stated.

Benefits

Gemalto pointed to a number of merchant and acquirer benefits when the switch to EMV technology is made - not the least of which is fraud prevention. The encryption embedded in the EMV technology makes captured data worthless to criminals.

"When [card not present] fraud is included in the equation, the picture gets even more attractive for the merchants," the paper said, noting that fraud concerns are among the most compelling reasons for moving to EMV technology. "It is the consensus among observers ... that physical world fraud in the U.S. is already above the global average today and is on the rise. The lessons learned from the many migration activities worldwide clearly indicate that fraud migrates toward those regions which have not yet migrated to EMV technology."

The introduction of EMV will also make U.S. payments compatible with payments in the rest of the world, meaning when U.S. citizens travel they will be able to use their credit and debit cards virtually anywhere.

Implementation

Gemalto endorsed Visa's request to issuers and merchants to move at the same pace as they begin EMV implementation. "The stakeholders are well advised to consider forced replacements of cards and devices outside of the normal replacement cycles," Gemalto said in the report. "The additional investment has a clearly identifiable return.

"It is even more important to initiate the migration of the ATM-installed base synchronously with the cards and devices. If ATMs are not made EMV compliant in sync with the POS devices, the life of the magnetic stripe technology will be prolonged, and ATMs become the single point of failure (or fraud for that matter) in the card payment system."

Gemalto believes contactless and mobile payments are the industry's future but it noted the "bulk of the hardware and software upgrades are still in front of the industry in order to make contactless and mobile payments a success. It would only take a small incremental investment to also provide EMV contact transaction capabilities in these new devices and thereby open up the U.S. acceptance infrastructure for the globally accepted EMV standard.

"Because of lower costs of terminals and cards, as well as Visa's TIP program, migrating to EMV will be easier and less costly than it was even a few years ago," Gemalto said.

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Electronic Merchant Systems | Board Studios