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Three things issuers should consider before migrating to EMV
- Terry Dooley
The hot topic in the payments industry today is the recent push by the major card associations for moving to EMV in the U.S. The transition to EMV will be a long and complex one. The issuing and merchant communities are both confused on how to implement EMV and what it might mean to them.
EMV means different things to an issuer than it does to a merchant. As EMV gains traction in the U.S. – and depending upon whether you are a merchant or an issuer – you will want to understand the challenges to make sure your next investment will be one that lasts... not one that requires reinvestment as EMV matures in the U.S. market.
Issuer considerations:
1. Do I really need EMV now for domestic cardholders in the next three to five years?
a. The short answer is likely, "No." However, you may consider implementing a prepaid chip program or a chip credit card program for the overseas travelers within your customer base.
2. What does EMV mean if I have to add, delete or change an application on the card's chip?
a. It's important to understand how things may change with EMV cards. For instance, you may need to update the application on the card, and if so, are you prepared to make that investment a second time?
b. If you want to leverage offline PIN verification in some environments, how do you push a PIN change to a chip card?
3. Does the value, business case and fraud savings of EMV counter the increased cost to produce a card, not only during re-issue, but in lost, stolen or damaged situations?
a. The change to support EMV is mandated by the card associations, and the costs will be required not optional.
b. Will you limit the number of replacement cards a consumer can get during the normal re-issue processes?
c. What impact will supporting EMV have on core banking or the EFT processor? What costs in addition to the physical card costs will you incur?
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