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Common debit solution to boost EMV

Visa, First Data pact offers streamlined EMV adoption

Common debit solution to boost EMV

Visa and First Data’s STAR Network agreed to share Visa’s common debit solution offering issuers, acquirers, and merchants a streamlined and cost-effective approach for debit EMV chip adoption.

EMV cards contain an embedded computer processor or a chip that generates a one-time code for each transaction making it nearly impossible for criminals to counterfeit. This feature will help protect merchants and issuers from fraud losses stemming from counterfeit payment cards used at the point of sale.

The collaboration between these two payments industry leaders on the license agreement will help to enable the development of regulation-compliant debit EMV solutions using a common Application Identifier (AID). First Data’s STAR Network will use PIN and no CVM on the application identifier to facilitate different types of debit transactions on its network, including PIN, PINless, and signature cardholder verification methods. The AID will facilitate U.S. debit transactions from any debit network that licenses the Visa common AID solution and is enabled on a Visa card.

“This agreement is a significant step to accelerate EMV adoption by addressing Regulation II compliance for debit EMV transactions,” says Barry McCarthy, president, First Data Financial Services. “First Data’s STAR Network is pleased to lead the effort by being one of the first debit networks to take this step and assist issuers, acquirers, and merchants with equal access to a shared EMV chip card technology.”

With the addition of First Data’s STAR Network, Visa debit issuers can now choose among several competing network options for their EMV chip debit cards, while also reducing the complexities of chip implementation.

“Visa’s priority is to facilitate the U.S. migration to EMV technology as efficiently and quickly as possible,” says Elizabeth Buse, global executive, Solutions, Visa Inc. “Under our approach, issuers and merchants will have a streamlined path to achieve the security benefits of EMV while minimizing disruption to legacy systems.”

The common debit solution will both support issuer choice and flexibility, allowing network changes without reissuing cards, and merchant and acquiring routing choices without costly host systems reprograming. Minimal updates are required for all when new participants adopt the solution.

John Ginovsky

John Ginovsky is a contributing editor of Banking Exchange and editor of the publication’s Tech Exchange e-newsletter. For more than two decades he’s written about the commercial banking industry, specializing in its technological side and how it relates to the actual business of banking. In addition to his weekly blogs—"Making Sense of It All"—he contributes fresh, original stories to each Tech Exchange issue based on personal interviews or exclusive contributed pieces. He previously was senior editor for Community Banker magazine (which merged into ABA Banking Journal) and for ABA Banking Journal and was managing editor and staff reporter for ABA’s Bankers News. Email him at jginovsky@sbpub.com.

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