june - debit emv forum
TRANSCRIPT
Agenda
• Debit Project Preparednesso Vendor Impactso Financial Institution Checklist
• Durbin Amendment Impacts to Debit EMV
• Forecasting Interchange Impacts
• Merchant Adoption
• Revisiting the Liability Shift
Debit Project Preparedness
• Which interface do you want your debit cards to have?oContactoDual
• If needed, do you have your artwork updated?• Are your PIN networks ready to support EMV?
Financial Institution Checklist
Discuss project/readiness with PIN networksoUnderstand routing arrangements
Notify core processor and discuss project with all impacted vendors (ATM, Intercept Processor, etc.)
Notify customer service providersDiscuss desired timeframesUpdate and/or create artwork if needed
Durbin Amendment and EMV
• Implemented in 2010 through the Dodd-Frank financial reform legislation
• Mandates that two independent networks must be made available
• Multiple networks and routing scenarios prompted for a special U.S.-specific application
Debit AID Review• Application Identifier (AID)
oGlobaloUS
• AID Selection at POSo Terminal reads for AID availabilityoChoice made by the terminal
automatically to select an AID based on priority as indicated by the issuer’s CVM
AcquirerBIN Merchant PriorityX XX XX XX X
7
CVM: PIN/NO CVM
Transaction Complete
AIDGlobal US
1. Terminal identifies if card is international or domestic
2. Terminal selects appropriate AID – opens application
3. CVM: Secure Handshake Between Card & Terminal Terminal receives BIN info from app & creates ARQC
4. ARQC and BIN Info sent to acquirer Routing selected
5. Transaction routed to appropriate network
6. Network facilitates A-V-A & generates ARPC
7. ARPC sent to Terminal- transaction complete
BIN Routing
Routing
Network Authentication (ARQC) Verification (CVM) Authorization ($)
ARPC Terminal1
2
3
4
5
6
7
AID
Application
Forecasting Interchange Impacts• Due to the forecasted merchant adoption,
TMG does not foresee an immediate impact to interchange fees.
• While most major national retailers may be ready to implement EMV come the liability shift, merchant adoption, as a whole, may take a while.
Upcoming EMV Migration Forum
June 23rd – 24th • Update will be provided next TMG EMV Forum• Expected topics:
• Issuer Signature• Card-Not-Present Fraud• EMV, Tokenization and Mobile updates• Acquirer/Merchant Gateways and ATM updates