U.S. Debit Networks Frame the EMV Problem

by Mercator Advisory Group 0

With the card networks holding on to their original deadlines for EMV compliance in the U.S., the EFT networks are beginning to publicize the problems with managing dual-debit networks in a single network framework.

From Digital Transactions:

Unlike the ISO 7812 magnetic stripe card infrastructure, the EMV infrastructure is brand-specific at the card application level.

The Secure Remote Payment Council issued an open letter to the card networks, asking them to work on creating a brand-agnostic set of standards that will enable issuers to comply with the Regulation II rules that require dual-debit network capability to support merchant routing requirements.

This came as a result of MasterCard’s offer of to use their Maestro AID (application identifier) which would allow transactions to be routed to different networks, but it would have to be through the MasterCard network. MasterCard defends the offer by stating:

In response to the SRPc’s letter, Carolyn Balfany, group head for product delivery for MasterCard, says MasterCard offered the industry use of its AID because it could immediately answer the requirements for making EMV debit transactions Durbin compliant.

With no long-term solution in sight and with a review of Regulation II slated for 2013 (the second year of the rule’s implementation), it’s possible that regulators will step in and require some kind of industry-level solution be put forth by the networks in order to avoid a compliance issue. It looks more likely now that there will be some pushback on the dates. Visa today issued some of its plans for EMV.

Click here to read more from Digital Transactions.

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