Westwood, N.J. April 27, 2012 - The Secure Remote Payment Council (SRPc) announces the formation of a working group to define and adopt a POS and ATM solution for chip and PIN acceptance for PIN debit networks. The goal of this collaborative effort is to provide interoperable adoption of chip and PIN debit payments to the industry, while supporting innovation, choice, and the proven track record of PIN security in reducing payment fraud. The debit networks have a long history of collaboratively working together – especially with regard to improving security - to define standards that maintain the integrity and quality of the U.S. payment industry. The working group includes leading PIN debit networks STAR®, SHAZAM®, PULSE®, NYCE®, AFFN®, ACCEL/Exchange®, ATH®, Credit Union 24®, CO-OP Financial Services® and Jeanie®. PIN debit is a growing payment method, popular among consumers. According to Federal Reserve statistics on the debit card industry (source: Regulation II, published July 20, 2011), in 2009 debit cards were used in 35% of noncash payment transactions and eclipsed checks as the most frequently used noncash payment method, and 88% of debit cards supported both PIN- and signature-based transactions. The pace and focus of chip technology development within the U.S. has increased significantly over the last nine months. The SRPc and the debit networks are concerned that the current international standards for chip technology do not consider the competitive, newly regulated, real-time payment infrastructure within the U.S. For example, the new regulations on debit card interchange fees and routing now require that issuers support at least two unaffiliated brands on debit cards in order to provide merchant routing choice -- a requirement that will need to be accommodated within chip technology going forward. Deployment of a single interoperable chip and PIN solution for PIN debit should put in place one of the biggest remaining puzzle pieces to spur the U.S. payment industry toward adoption of chip technology. The Secure Remote Payment Council (SRPc) is a nonprofit, inter-industry trade association that supports the growth, development and market adoption of debit-based internet eCommerce and mobile channel payment methods that meet or exceed the security standards for PIN-based, card-present payments. Its members include merchants, financial institutions, merchant processors, issuer processors, payment brand companies, payments authentication hardware providers, payments authentication software providers and payments consultants. In February, the SRPc published an open letter on chip and PIN calling on the industry to carefully review the ramifications, understand their inherent risks and come together to ensure that chip and PIN deployment in the U.S. is open to all market participants in an equitable manner. This working group is a first step in answering that call to action. For additional information, visit www.SecureRemotePaymentCouncil.org .
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Source: Company press release.