MasterCard Speeds Chip Terminal Deployment for Merchants
June 20 2016 - 1:00PM
Business Wire
Testing Completed in Hours, Not Days or
Weeks
MasterCard today unveiled a new EMV chip terminal testing and
certification program aimed at speeding chip adoption by U.S.
merchants.
MasterCard operates a chip terminal testing and certification
process used by merchant bank acquirers and value-added resellers
(VARs) before terminals go live at checkout. The new program
maintains terminal testing and certification quality while easing
in-store terminal activation by empowering acquirers and VARs as
follows:
- Acquirers
will have more responsibility and flexibility for terminal testing
as a part of their own internal processes and schedules. Acquirers
can now follow recommendations and use MasterCard terminal testing
procedures or they can choose alternative testing processes and
tools that support the integrity of their existing procedures.
MasterCard has also cut the number of needed tests by 58 percent,
minimizing mandatory tests and allowing acquirers to use their
discretion and expertise in deciding when terminals are ready for
deployment.
- VARs will
receive more and dedicated resources to help accelerate terminal
deployments. The new resources will help VARs navigate terminal
configurations, test processes and ramp up in-field issue
resolution. For example, if the cardholder experience is impacted
by a terminal, documentation will exist to assist in resolving the
issue in a timely manner.
- Acquirers and
VARs will benefit from published guidelines on standard
terminal test configurations which will improve the testing cycle
and simplify testing processes. Standard terminal configuration
packages will be available for certain industry segments, such as
quick-serve restaurants and big box retailers.
“The purpose of the EMV transition is to create more layers of
security and to help drive card fraud out of the U.S. Elavon has
been working with MasterCard and our merchant customers for over
three years to develop strategies, implement hardware and software
upgrades and train employees. By accelerating the testing and
certification process, MasterCard and Elavon can make more
terminals available to more merchants, increasing the safety of the
entire payments ecosystem,” said Guy Harris, president of Elavon
North America.
EMV Chargebacks
The purpose of the EMV transition is to drive counterfeit card
fraud out of the U.S. market. MasterCard has successfully assisted
EMV migrations in approximately 150 countries and sees the current
U.S. EMV migration and chargeback levels to be consistent with
other markets, following the implementation of a liability
shift.
MasterCard is adding more intelligence on its network to
minimize chargeback costs to merchants who have not yet
transitioned to EMV. As of October 1, 2015, liability shifted
between issuing banks and merchants, rewarding the party with the
more secure technology by holding the other party responsible for
counterfeit card fraud. Many merchants are seeing these costs –
which previously were absorbed by issuers – for the first time.
The MasterCard network now has checks and blocks to ensure that
chargebacks follow the liability shift guidelines. For example, the
system prevents invalid chargebacks for fraud occurring at ATMs and
automatic fuel dispensers where liability shifts do not go into
effect until October 2016 and October 2017, respectively.
MasterCard has policies in place that limit merchant exposure to
excessive chargebacks on fraudulent accounts. These limits are
applicable globally, for all types of fraud, including in store and
online. MasterCard continuously evaluates thresholds related to
these policies to ensure a balanced payment ecosystem.
“The whole industry wins when action is taken against
counterfeit card fraud. Reducing terminal certification-testing
time to a couple of hours from as long as a couple of weeks is one
positive step we can take in a more mature market. Innovations
including M/Chip Fast speed chip transaction times and are having a
positive impact as is easing fraud costs to merchants,” said Chiro
Aikat, senior vice president for product delivery-EMV for
MasterCard. “We are keenly focused on our goal: driving counterfeit
card fraud out of the U.S.”
Chip Momentum Continues
MasterCard continues to see great progress in EMV adoption. The
company recently announced that almost 70 percent of all
U.S.-issued MasterCard branded consumer credit cards are now chip
cards. This marks a 58 percent increase in chip cards in market
since the October 1, 2015 liability shift. However, cards are just
half the equation.
Chip-active merchant locations have also increased to 1.4
million, up 240 percent since October 1. This number includes 1
million chip-active local and regional merchants, a 170 percent
increase since the liability shift.
About MasterCard
MasterCard (NYSE:MA), www.MasterCard.com, is a technology
company in the global payments industry. We operate the world’s
fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in
more than 210 countries and territories. MasterCard products and
solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more
secure and more efficient for everyone. Follow us on
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version on businesswire.com: http://www.businesswire.com/news/home/20160620006140/en/
Media:MasterCardBeth Kitchener,
914-249-2058beth.kitchener@mastercard.com
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