The announcement by Visa Inc. and First Data’s STAR Network to share Visa’s common debit solution is a giant step in the right direction to make EMV adoption happen for debit transactions. It addresses merchant choice requirements presented by Regulation II and offers issuers, acquirers and merchants a streamlined and cost-effective approach for EMV chip adoption.
The common debit solution will both support issuer choice and flexibility, allowing network changes without reissuing cards and merchant and acquiring routing choices without costly host system reprogramming. Minimal updates are required to adopt the solution.
Recent data breaches have made security at the point of sale even more important than before. Merchants, card issuers and consumers expect payments to be secure. EMV cards contain an embedded computer processor or a chip that generates a one-time code for each transaction making it nearly impossible for criminals to counterfeit. It’s a step in the right direction.
We’re pleased to lead the effort toward better security in payments by being one of the first debit networks to take this step and assist issuers, acquirers, and merchants with equal access to a shared EMV chip card technology.
There is still much work to do make EMV adoption a reality. I know we will continue to look for innovative ways to work with our industry partners and continue to make payments more secure.