SHAZAM Adopts Visa’s Common AID Solution
April 17, 2014
Yet another debit network has struck an agreement to license common AID technology solving the conflict between the network-routing provisions of the Durbin Amendment and the technology specifications of EMVco. Des Moines, Iowa-based SHAZAM Network said yesterday it has agreed to use Visa’s common application identifier. Most of the major U.S. EFT networks already have such agreements in place, removing a major hurdle that will enable EMV-compliant debit-card transactions while abiding by the Durbin Amendment mandate that merchants have access to at least two independent debit networks through which to route those transactions.
SHAZAM had been deeply involved with several industry groups trying to find an independent solution to the problem. EMV plans, which had been stalling a bit late in 2013, went into overdrive in response to the media frenzy surrounding the Target breach. That prompted the debit networks, including SHAZAM, to line up behind the solutions advanced by the card networks. But, the work started by SHAZAM and others as part of the Secure Remote Payment Council’s Chip-and-PIN working group and the Debit Network Alliance needs to continue, according to Terry Dooley, CIO of SHAZAM Network.
“The recent data breaches highlighted the need for additional security in the payment ecosystem and EMV, as a result, received quite a bit of attention,” Dooley told CardNotPresent.com. “EMV does provide counterfeit fraud protection but, as many others have already pointed out, the data gathered could create opportunities for fraud and may still require a reissuance of cards in many cases. Unfortunately, there is no silver bullet to prevent all of this. A solution which has common governance and IP not specific to a single organization but based on industry standards is still needed in the market place. There are many non-branded products like ATM, loyalty, prepaid and closed-loop cards, for example, that can benefit from the Chip-and-PIN technology.”