News

First Data, MasterCard announce EMV common AID agreement

April 3, 2014

First Data and MasterCard have announced an agreement under which the First Data Star Network will employ MasterCard's common U.S. debit EMV solution.

As a result of the agreement, debit card issuers will have greater choice in how they identify and apply multiple network relationships to ensure Regulation II compliance in a cost-effective way, the two companies said in a news release. Merchants and acquirers will continue to route transactions as they prefer, without having to reprogram host systems.

"This agreement, and other EMV agreements we have recently announced, helps accelerate the migration to EMV adoption, and moves the entire industry a step closer to additional debit payment security," said Barry McCarthy, president of First Data Financial Services.

In January 2013, MasterCard was the first network to offer its proprietary technology to other U.S. debit networks in an effort to support the migration to EMV and enable the routing of PIN debit transactions over multiple, unaffiliated networks. This decision allows acquirers to brand transactions originating from the U.S. common AID for any debit networks that elect to participate.

"The industry has come together to identify the requirements for a common debit EMV solution to allow one application on each card," said Chris McWilton, president of North American Markets at MasterCard. "This agreement with First Data and the STAR Network will help accelerate the implementation of the more secure chip technology by our customers and cardholders."