Visa Expands U.S. Roadmap for EMV Chip Adoption to Include ATM and a Common Debit Solution

 Visa Expands U.S. Roadmap for EMV Chip Adoption to Include ATM and a Common
                                Debit Solution

Visa to Make Technology Available to Debit Issuers and Networks to Facilitate
Issuer Flexibility and Merchant Routing Choice

PR Newswire

FOSTER CITY, Calif., Feb. 4, 2013

FOSTER CITY, Calif., Feb. 4, 2013 /PRNewswire/ --Visa Inc. (NYSE: V) today
announced its support for a common U.S. debit solution and an expansion of
Visa's previously announced roadmap for EMV (Europay MasterCard Visa) chip
card adoption in the United States to include a migration path for ATM
transactions. To help facilitate chip adoption and issuer compliance with U.S.
debit regulations, Visa plans to provide some of its proprietary EMV chip
technology to the industry. This approach will simplify EMV chip
implementation for debit, reduce migration costs and increase flexibility for
card issuers, acquirer processors and merchants.

"Our world is demanding greater flexibility and security when it comes to
paying for goods and services," said Jim McCarthy, global head of product,
Visa Inc. "Visa's expanded roadmap creates an environment in which new forms
of electronic payment can flourish, offering security, convenience and
flexibility to consumers, merchants, and issuers. As part of our commitment,
we are offering the industry a common U.S. debit solution that will streamline
implementation of secure EMV chip technology and advance the U.S. marketplace
towards next generation payments, including mobile payments."

Facilitating Migration: Common Solution for U.S. Debit Chip Cards

Visa's decision to support a common U.S. debit solution, which comes after
thorough consultation with industry stakeholders, will encourage adoption of
EMV chip and help to address the unique challenges posed by U.S. regulations
that require debit card issuers to enable at least two unaffiliated network
routing options on their cards.

Visa will make some of its EMV chip technology available free of charge in
conjunction with a generic, unbranded Application Identifier (AID). This
common approach will provide the most flexibility for issuers to manage their
card portfolios over time while facilitating merchant choice for transaction
routing and delivering a faster, simpler, more cost-effective implementation.

Merchants can continue to route debit transactions to their network of choice,
just as they can with magnetic stripe transactions today. Issuers will
continue to have the flexibility to change debit networks without having to
re-issue cards. In addition, this approach will enable debit networks that do
not have their own EMV chip solutions to support debit chip card transactions
quickly and benefit from Visa's tried and tested technology that already
powers more than 800 million EMV Visa cards around the world. All transactions
can be routed to the appropriate network using the same methodology used in
today's magnetic stripe environment. Visa will also make its technology and
generic U.S. debit AID available to support ATM transactions.

"Visa's proposal enables chip technology to support debit routing from the
point of sale or the ATM, providing the same capabilities the industry relies
on today in the magnetic stripe environment, with a streamlined approach that
minimizes complexity and time-to-market," said Julie Conroy, Research
Director, Aite Group.

Expanded EMV Chip Roadmap: ATM Liability Shifts in the U.S. and Asia Pacific

Visa also established a timeline to encourage acquirers to upgrade ATMs in
Asia Pacific and the U.S. to accept EMV chip cards. Visa will assign liability
for counterfeit fraud ATM transactions to the party – acquirer or issuer –
that has not adopted EMV chip technology. If an EMV chip card is used at an
ATM that cannot accept EMV chip-enabled cards, the ATM acquirer will bear the
cost for counterfeit fraud. Currently card issuers bear the liability for
fraudulent ATM transactions.

"Visa's roadmap is designed to make the security and flexibility of EMV chip
technology available to consumers and issuers in every environment, including
ATMs," said Ellen Richey, chief enterprise risk officer, Visa Inc. "This new
timeline balances the interests of issuers and ATM operators and provides time
to include chip integration into ATM hardware upgrade plans. As a result, the
entire marketplace can more quickly realize the strong security benefits of
EMV chip technology in this critical channel."

Visa has established the following timelines for ATM transactions, across all
Visa and/or Plus branded products:

  oEffective April 1, 2015 – U.S. third-party ATM acquirer processors and
    sub-processors must be able to support EMV chip data

  oEffective October 1, 2015 – Liability will shift in Asia Pacific,
    excluding China, India, Japan, and Thailand

  oEffective October 1, 2017 – Liability will shift in China[1], India,
    Japan, Thailand, and the U.S.

Additionally, from April 1, 2013, a liability shift will apply to all
qualifying transactions taking place in Australia and New Zealand. With
liability shifts already in effect in Europe; Canada; Latin America and the
Caribbean; and Central and Eastern Europe, Middle East and Africa; by 2017
Visa issuers and acquirers will be able to rely on a single global liability
policy that encourages chip-on-chip (EMV chip card read by an EMV chip card
reader) transactions at both the point-of-sale and ATMs.

Since EMV chip payment devices generate dynamic values that are unique to each
transaction and that change with every use, chip technology adds an additional
layer of security that helps significantly reduce card present fraud. By
encouraging investments in EMV chip technology, Visa is encouraging improved
international interoperability and security with dynamic authentication as
well as helping to build a foundation for mobile payments.

About Visa Inc.: Visa is a global payments technology company that connects
consumers, businesses, financial institutions and governments in more than 200
countries and territories to fast, secure and reliable electronic payments. We
operate one of the world's most advanced processing networks—VisaNet—that is
capable of handling more than 24,000 transaction messages a second, with fraud
protection for consumers and assured payment for merchants. Visa is not a bank
and does not issue cards, extend credit or set rates and fees for consumers.
Visa's innovations, however, enable its financial institution customers to
offer consumers more choices: pay now with debit, ahead of time with prepaid
or later with credit products. For more information, visit

[1] Domestic ATM transactions in China are excluded from the liability shift.

SOURCE Visa Inc.

Contact: Sofia Mata-Leclerc, Visa Inc., +1-650-432-1008,;
Jay Hopkins, CRC Public Relations, for Visa Inc., +1-703-683-5004 ext. 107,
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