Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Products
Remote payment council announces debit chipPIN working group
WESTWOOD, N.J. (5/1/12)--The Secure Remote Payment Council (SRPc) has formed a working group to define and adopt a point of sale and ATM solution for chip and PIN acceptance for PIN debit networks. 

The group's goal is to provide interoperable adoption of chip and PIN debit payments to the industry, while supporting innovation, choice, and the proven track record of PIN security in reducing payment fraud, SRPc.

The working group includes leading PIN debit networks STAR, SHAZAM, PULSE, NYCE, AFFN, ACCEL/Exchange, ATH, Credit Union 24, CO-OP Financial Services and Jeanie.

SRPc  is a nonprofit, inter-industry trade association that supports the growth, development and market adoption of debit-based internet e-commerce and mobile channel payment methods that meet or exceed the security standards for PIN-based, card-present payments.  Its members include merchants, financial institutions, merchant processors, issuer processors, payment brand companies, payments authentication hardware providers, payments authentication software providers and payments consultants. 

In February, the SRPc published an open letter on chip and PIN calling on the industry to review the ramifications, understand their risks and come together to ensure that chip and PIN deployment in the U.S. is open to all market participants in an equitable manner.  This working group is a first step in answering that call to action.

The debit networks have a history of working together--especially with regard to improving security--to define standards that maintain the integrity and quality of the U.S. payment industry.

PIN debit is a growing payment method. In 2009, debit cards were used in 35% of noncash payment transactions. They eclipsed checks as the most frequently used noncash payment method, and 88% of debit cards supported both PIN- and signature-based transactions, according to Federal Reserve statistics on the debit card industry.  

The SRPc and the debit networks are concerned that the current international standards for chip technology do not consider the competitive, newly regulated, real-time payment infrastructure within the U.S. For example, the new regulations on debit card interchange fees and routing now require that issuers support at least two unaffiliated brands on debit cards to provide merchant routing choice--a requirement that will need to be accommodated within chip technology going forward, said the council.  Deployment of a single interoperable chip and PIN solution for PIN debit should put in place one of the biggest remaining puzzle pieces to spur the U.S. payment industry toward adoption of chip technology, said SRPc.


RSS





print
News Now LiveWire
Sony hack linked to N. Korea, says U.S.intelligence via @nytimes http://t.co/fE3PtMgEFz
13 hours ago
.@CUNAMutualGroup Klewin shares final thoughts, forecast on lending regulations with @cumagazine before retiring http://t.co/v78QY3QwqB
16 hours ago
Current @CUNA COO @JillTomalin promoted to deputy chief of staff
17 hours ago
#CU Effect:@ChartwayFCU 'branch of the future' 2 benefit members, staff. 2nd installment of new News Now series here:http://t.co/ImBY4nupEj
17 hours ago
U.K. regulators have given formal authorization for the @c_of_e to form a #creditunion.
17 hours ago