MasterCard Prepares Change to EMV-Enabled ATMs

by Mercator Advisory Group 0

From Fox Business News:

MasterCard officials expanded its roadmap for EMV debit and credit card technology to include automatic teller machines. After October 2016, banks can hold ATM operators liable for fraudulent withdrawals and cash advances from debit and credit cards. MasterCard’s announcement was the first to specifically address ATM operators, who had been waiting for the kind of details already provided to store owners and gas station operators.

In a statement to reporters, MasterCard spokesman Mike Weitzman said that payment fraud usually shifts to the “least secure channel.” With most merchants expected to adopt contactless EMV card readers before the end of 2015, ATMs could become a target for criminals who manufacture fake debit and credit cards using cloned magnetic stripe data. Technology roadmaps previously announced by MasterCard, Visa, and American Express include a “liability shift” that forces merchants to pay for preventable fraud.

Although this will not be a easy process, it will yield benefits for ATM owners and operators. While increasing the cost structure for ATMs by requiring equipment that reads contactless EMV chips, a shift toward EMV-enabled ATMs will offer financial institutions and other operators with improved fraud and litigation protection and reduced financial and reputational risk.

Larger financial institutions and operators that are near urban centers, airports, and travel hubs and process international business and travel cards will likely be among the first to begin the transition, with others following closely behind.

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