U.S. merchants now may process magnetic stripe, e-commerce and EMV chip-and-PIN payments using Yespay International Ltd.'s cross-border payment service.
Emboss, Yespay's cross-border payment service, is designed to manage the authorization routing and settlement of credit and debit card transactions for cards using the EMV Integrated Circuit Card Specifications.
The service also includes such security features as point-to-point encryption and tokenization, which means no credit or debit card data gets exposed to merchants or transmitted over unsecured networks, Yespay said in a May 4 press release.
Thus far, the U.S. merchant processors Chase Paymentech Solutions LLC and First Data Corp. have certified the product.
Yespay, of London, is providing its Emboss service to vendors that sell payment acceptance to merchants operating in both the U.S. and Canada.
Yespay's cross-border payment service most likely will resonate with merchants in border areas or tourist locations, where international consumers are using EMV cards, said Rick Oglesby, a senior analyst with Aite Group LLC of Boston.
Otherwise, many large U.S.-based merchants already have EMV capabilities within their point of sale systems but do not use them, Oglesby said. "And I don't foresee EMV becoming significant in the U.S. unless it becomes a legislative rule," he said.
Merchants pay a one-time setup fee plus a monthly fee per point of sale system or e-commerce website instead of per click or individual transaction, Yespay said. Merchants also do not need to pay a licensing fee. Yespay would not provide the specific amounts merchants would pay.
The point of sale integration takes less than four weeks and enables payment-acceptance vendors to forgo EMV end-to-end bank testing, which often can be costly, because the service is EMV chip-and-PIN preaccredited with major acquirers in Europe and North America, according to Yespay.
