Discover has released a comprehensive EMV roadmap for Discover Network, Diners Club International, PULSE and Discover Card. As announced, the roadmap does not include EMV deadlines for ATMs. To date, MasterCard is the only card brand to have done so.
In alignment with other U.S. EMV migration timelines, Discover is imposing a fraud liability shift for Discover Network (in the U.S., Canada and Mexico) and PULSE (in the U.S.), effective October 1, 2015 at point-of-sale terminals and Oct. 1, 2017 at automated fuel dispensers.
The company said its fraud liability shift policy will be a risk-based payments hierarchy that benefits the entity that leverages the highest level of available payments security, the company. As fraud liability shift is already in place for Diners Club International (effective Dec. 31, 2012), Discover will have one standard liability shift policy in place across all networks by October 1, 2015.
Starting October 2013, Discover will also grant annual PCI audit waivers for merchants that process 75 percent of Discover Network transactions via terminals supporting both contact and contactless payments. The policy is in keeping with roadmaps of other card companies.
PULSE, a Discover Financial Services company and debit/ATM network, will capitalize on Discover's already significant EMV-deployment experience by using the D-payment application specification (D-PAS) to enable EMV transactions at the point of sale. In addition to introducing the fraud liability shift, PULSE will require U.S. direct-connect merchants and point of sale acquirer processors to support EMV data effective Oct. 16, 2013.
Although PULSE's implementation of D-PAS supports all cardholder verification methods, its U.S. implementation of EMV is expected to feature broad support for online PIN-authenticated transactions as the most secure cardholder verification method.
PULSE also is collaborating with other debit networks and industry work groups to facilitate interoperability among card brands and to enable merchants to route debit transactions consistent with the requirements of the Federal Reserve's Regulation II.
"Our timeline to support chip-based credit and debit transactions, in addition to our Fraud Liability Shift policy, are critical milestones to helping make EMV a reality in the U.S.," said Diane Offereins, president of payment services at Discover. "As with the Discover mandate announced earlier this year, our approach to EMV enables participants to select verification methods and transaction types that meet their organization's needs."
For more on this topic, visit the EMV research center.