Durbin delaying EMV road map

The U.S. implementation of the Europay/MasterCard/Visa (EMV) global standard for integrated circuit (chip) payment cards is stalled just weeks before April 1, 2013, when processors are supposed to be capable of processing EMV payments.

According to interviews with a number of payments industry executives, EMV’s introduction into the U.S. market is proving technically more difficult than anticipated because of new federal regulations under the Durbin Amendment to the 2010 Dodd-Frank Act, which requires that merchants have a choice of at least two independent debit networks for processing debit transactions.

On Jan. 16, 2013, the Electronic Transactions Association called for the industry to adopt a single application identifier (AID) for EMV debit transactions. A debit AID is a number encoded on a debit card that identifies the card type and debit network(s) associated with the card.

A chip on an EMV card could be loaded with the unique AID of the debit routing networks approved by the card’s issuer, or the industry could adopt a common AID that allows the issuer to select or change networks without necessitating recalling and reissuing the card.

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