DES MOINES, Iowa-Reducing fraud losses and meeting the major card issuers' liability shift deadlines are primary reasons CUs and community banks are preparing for EMV, according to a new survey from the Members Group.
The study indicates, however, that a large majority of this group are still uncertain whether they will make the change by October 2015, the month Visa and MasterCard will shift fraud liability to the least secure entity.
Those are key findings from a TMG EMV survey of its credit card processing clients. The study was conducted to help its clients better understand how they compare to similar financial institutions.
Following fraud loss and liability shifts (62%), satisfying cardholders who live, work or frequently travel overseas is another major motivator (14%), according to the study. Only 37% of respondents said their plan includes migration to EMV cards prior to October 2015, with 52% undecided. Brandon Kuehl, product development architect and a leader of TMG's EMV operations team, anticipates the great majority of the undecided FIs will make the shift to EMV prior to October 2015 and that most will firm up their implementation strategies within the next 12 months.
Other Findings:
* Among decided credit unions and community banks, chip-and-PIN was the most popular authentication format.
35% have not decided between chip-and-PIN or chip-and-signature formats.
* Respondents were split down the middle in terms of their plans to pursue dual-interface plastics-where EMV cards will be capable of both contact and contactless payments. Among those respondents who have made firm decisions, 45% said their cards would support both forms of payment.
