DES MOINES, Iowa–The Members Group (TMG) has released a new white paper in which two payments experts explain the liability shift deadlines proposed by the major card networks are not EMV mandates.
“With liability shift timelines in place, financial institutions may feel compelled to implement EMV immediately,” write co-authors Matt Flynn, TMG director of client relations, and Brandon Kuehl, product development architect. “However, it’s important to understand these timelines are suggestions and are not mandated.”
Rather than rely on the liability-shift deadlines for motivation to implement EMV, the paper argues, card issuers should look at their own unique portfolios to determine the best time to make the switch.
The paper outlines cost/benefit considerations in the decision, including current and future card losses, cardholder convenience, interchange and portfolio segmentation.
Flynn and Kuehl also examine the choice between chip-and-signature or chip-and-PIN formats, adding that a hybrid of the two formats is possible: “Today, a given plastic can have both chip-and-signature and chip-and-PIN functionality. In this set up, the card’s chip communicates with the merchant’s terminal to determine which verification method to use. As well, issuers that migrate to chip-and-signature cards now can also add chip-and-PIN functionality in the future.”
The paper is available for free at: themembersgroup.com/premvroadmap.
