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Table of Contents

Lead Story

Untangling the legal side of acquiring


Industry Update

NACHA seeks input on QR codes

It's anonymous mobile payments for Amazon

Accord reached on EMV liability shift

Breach exposes 2.4 million cards

Selling Prepaid

Prepaid in brief

The promise of prepaid MDC

New approach urged for cross-border enforcement


The new PCI SSC guidelines: Separating the cloud from the fog

Kurt Hagerman
FireHost Inc.

Get ready for the mobile revolution

Michael Gavin
Merchant Warehouse


Street SmartsSM:
Think like an aggregator

Dale S. Laszig
Castles Technology Co. Ltd.

Impact of EMV and NFC on acquiring

Jim Bibles
Aperia Solutions

Training customized for you

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

Company Profile



Meet The Expert: Ross Federgreen

New Products

Versatile storefront, mobile merchant app

AprivaPay Plus
Apriva LLC


Conform, with style


Readers Speak

Resource Guide


A Bigger Thing

The Green Sheet Online Edition

May 13, 2013  •  Issue 13:05:01

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Accord reached on EMV liability shift

In advance of a contactless payment-related deadline imposed by MasterCard Worldwide on the U.S. ATM industry, the National ATM Council Inc. and the card brand reported they had reached agreement on ways to support the transition of U.S. ATMs to the Europay/MasterCard/Visa (EMV) chip and PIN standard, which is considered more secure than the security afforded mag stripe-enabled cards.

By April 19, 2013, MasterCard expects the U.S. ATM industry to have its ATMs configured to accept non-U.S.-issued and EMV-enabled MasterCard Worldwide branded Maestro cards. For ATM operators that do not have their ATMs properly configured to accept the cards by the deadline, a liability shift will occur where those ATM operators will be responsible for any fraud that occurs on those cards when non-EMV-compliant machines are involved. It is one early deadline for the entire payments industry's road map to full compliance with the EMV standard by Oct. 1, 2016, as imposed by MasterCard. (Visa Inc. has a slightly different timeline.)

Fraud solution deployed for free

NAC, which represents independent U.S. ATM providers, has been working with MasterCard to facilitate the transition to EMV. The companies said in a joint statement that they had reached "a balanced and workable arrangement that should support the U.S. ATM industry in managing the liability shift program." Specifically, the dialogue resulted in MasterCard taking the following steps:

Accord and discord

In February 2013, ATM operators represented by NAC requested MasterCard give them more time to reach EMV compliance before imposition of the liability shift. The operators pointed out that technical issues pertaining to EMV deployment in the United States are still unresolved. They also said they need more time to transition the more than 425,000 ATMs in the United States to the EMV standard.

NAC and MasterCard said the point of the liability shift program is to prevent fraud by implementing EMV at all POS devices, including ATMs. At the same time, payment businesses are given the choice about "whether, when and how to implement EMV technology," the organizations noted.

The program has been undertaken for the apparent good of the entire payments industry. "All of this is being done with an eye toward a broader migration - and to more effectively and comprehensively prevent fraud - over the next few years," the organizations said. "Together, we will continue to deliver consumers the reliable and secure access to their money they have come to expect over the past 45-plus years, in this instance through ATMs."

But doubts persist. In a Feb. 11, 2013, Federal Reserve Bank of Atlanta blog post, Douglas King, a Payments Risk Expert in the Atlanta Fed's Retail Payments Risk Forum, expressed reservations about the U.S. push to EMV largely because it does not address card-not-present (CNP) fraud. "Until a cost-effective and consumer-friendly CNP fraud reduction solution gains traction, I believe a business case for EMV built around fraud losses will remain difficult to build," he said.

For additional news stories, please visit 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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