EMV Group Offers Technical Solution to EMV/Durbin Conundrum
May 1, 2014
The EMV Migration Forum on Tuesday released a recommended technical framework for debit cards that resolves the conflict between implementing EMV for debit cards and complying with the network routing requirements of the Durbin Amendment. The issue has been under discussion by the card brands, issuing banks, and various groups representing U.S. EFT networks since Durbin’s passage as part of the Dodd-Frank Wall Street reform legislation.
The technical proposal and the accompanying white paper are available at the EMV Migration Forum’s Website.
In the wake of the major retailer security breaches in December, EMV implementation has gained momentum. Prior to the breaches, discussions around the issue consisted of trying to establish a common application identifier (AID) that did not rely on proprietary technology so merchants could have a choice of more than one debit network over which to route EMV transactions. MasterCard and Visa both proposed proprietary solutions that did not appeal to other debit networks. After the breaches, however, the clamor for EMV forced the EFT networks to line up behind the card brands’ solutions.
The EMV Migration Forum’s technical standard could provide another path to EMV debit acceptance, but the group said it is not the only possible technical approach for implementing EMV for debit nor is it required for debit implementation.
“Ultimately, adoption of the framework and specific technical solutions developed independently by individual industry stakeholders will depend on their own business decisions, considerations and circumstances,” the group wrote in the paper. “Industry stakeholders should work with their vendors and payment brand partners on implementation questions.”