Visa and MasterCard in Licensing Agreement to Support US EMV Chip Debit Routing
Friday, 2 August 2013
Visa Inc. And MasterCard have announced an agreement to license their respective common US debit solutions to each other in a collaboration that is designed to best streamline US chip debit transactions through a number of unaffiliated networks.
Chris McWilton, president for the North America region at MasterCard said of the move that "This represents our continued commitment to advance the adoption of the most advanced payment solutions and security standards in order to deliver maximum value to merchants, consumers and issuers,"
“By providing every U.S. debit network with an efficient, market-ready answer, we are delivering a proven solution that not only preserves merchant routing choice, but ensures seamless interoperability with all other EMV programs across the globe."
Speaking for Visa, Elizabeth Buse, a Global Executive for Visa Inc said "This approach offers issuers, acquirers and merchants a streamlined solution for debit chip card routing, helps ensure a cost-effective migration, and enables even broader adoption of secure, convenient chip debit programs in the United States,"
"Importantly, this solution allows merchants and acquirers to deploy payment terminals using existing chip technologies that are already widely integrated into existing chip card acceptance solutions."
One of the key aims of the move by the two card networks is to push forward the US market into the use and integration of chip-enabled cards, much like existing European security and credit, debit and prepaid card features, making credit, debit and prepaid card use far more secure, limiting the fraud that exists as a result of card payments still being signed for.
With this move, issuers will now be able to load their global brand’s application onto their cards, these being either MasterCard or Visa, allowing them to enable transactions to route over participating PIN debit networks within the US with far greater flexibility. This approach is seen to be consistent with EMV Migration Forum’s recommendations, satisfying the markets needs for a single common debit application identifier (AID) to vastly reduce the complexities of EMV implementation within the US.