Georgie
Carder
- Messages
- 31
- Reaction score
- 1
- Points
- 8
Thursday, 11 March 2010
Challenges in migrating to EMV
The recent European Payments Council newsletter provided an encouraging update on European progress towards EMV compliance in terms of SEPA Cards. EMV migration for ATMs in Europe currently stands at 94% compliance.
This is good news for card security as following the introduction of EMV compliance in 2004, card fraud declined by 25% within the first two years. What’s more, EMV cards allow for increased functionality at the ATM terminal, increased levels of personalisation and significantly lower levels of fraud.
However, these benefits have not come without associated challenges. ATMs have had to evolve in order to operate the complex Chip and PIN card technology and banks have found themselves struggling to keep networks up and running using traditional, manual, testing procedures. As a result, automated testing is increasingly seen as the key way to adequately protect against network failure. This is a challenge that the industry has increasingly begun to address and many top tier banks now deploy some form of automated testing procedures.
Whilst the vast majority of European banks have now adopted EMV, this is not the case in other parts of the world. Asia is currently in the transition process toward EMV migration. Some countries, such as Malaysia and Singapore, have made the transition to the EMV like protection standards, while other countries, such as Thailand, have not. While fraud has decreased significantly in Europe since the transition, the sporadic migration in Asia is resulting in a drop in fraud in EMV compliant countries while causing a spike in countries like Thailand.
The greatest challenge faced by Asia is the increased shift of fraud to non-EMV compliant countries. Increasingly tourists are arriving in Asia armed with EMV Chip- and- PIN cards and the implied trust they have in these cards is increasingly susceptible to fraud in non-EMV compliant countries . If the Asian banks don’t adopt EMV standards across the region, fraud will take on increasing proportions, exposing the banks to even greater chargeback fees associated with fraudulent activity and the ensuring loss of goodwill.
These are issues that still need to be ironed out in Asia. Hopefully Europe however provides an encouraging example of the benefits regional adoption of EMV can bring. Quote: European Payments Council.
Challenges in migrating to EMV
The recent European Payments Council newsletter provided an encouraging update on European progress towards EMV compliance in terms of SEPA Cards. EMV migration for ATMs in Europe currently stands at 94% compliance.
This is good news for card security as following the introduction of EMV compliance in 2004, card fraud declined by 25% within the first two years. What’s more, EMV cards allow for increased functionality at the ATM terminal, increased levels of personalisation and significantly lower levels of fraud.
However, these benefits have not come without associated challenges. ATMs have had to evolve in order to operate the complex Chip and PIN card technology and banks have found themselves struggling to keep networks up and running using traditional, manual, testing procedures. As a result, automated testing is increasingly seen as the key way to adequately protect against network failure. This is a challenge that the industry has increasingly begun to address and many top tier banks now deploy some form of automated testing procedures.
Whilst the vast majority of European banks have now adopted EMV, this is not the case in other parts of the world. Asia is currently in the transition process toward EMV migration. Some countries, such as Malaysia and Singapore, have made the transition to the EMV like protection standards, while other countries, such as Thailand, have not. While fraud has decreased significantly in Europe since the transition, the sporadic migration in Asia is resulting in a drop in fraud in EMV compliant countries while causing a spike in countries like Thailand.
The greatest challenge faced by Asia is the increased shift of fraud to non-EMV compliant countries. Increasingly tourists are arriving in Asia armed with EMV Chip- and- PIN cards and the implied trust they have in these cards is increasingly susceptible to fraud in non-EMV compliant countries . If the Asian banks don’t adopt EMV standards across the region, fraud will take on increasing proportions, exposing the banks to even greater chargeback fees associated with fraudulent activity and the ensuring loss of goodwill.
These are issues that still need to be ironed out in Asia. Hopefully Europe however provides an encouraging example of the benefits regional adoption of EMV can bring. Quote: European Payments Council.
