EMV compliance with Credit Union ATMs now more critical than ever
For credit unions, 2015 is going to be a very busy year. ATM machines will need to become EMV compliant by October. With that comes what payments and financial industry executives are watching very carefully - shifting liability. According to the European ATM Security Team, the United States comes in dead last among G-20 nations who have transitioned to the new chip-and-pin technology.
Chip-and-pin technology consists of embedding a chip in a credit or debit card that requires a password to make a transaction. The reasoning is the chip makes it easier to stop fraudulent activity from starting. According to Aite Group in Boston, fraud costs the U.S. card payment industry some $8.6 billion annually. Quoting the same report, ATM Gurus said that with an estimated 400,000 ATMs in use across the U.S, it would take nearly $8 billion dollars to transition to EMV-compliant machines.
Implementing the changeover
For companies deploying ATMs, the simplest way to comply with the EMV merger before deadline is to buy updated ATM machines with the requisite software installed. Self-installation can be time-consuming and costly if not done correctly. Dan Swain, Vice President at ATM Gurus, suggested planning ahead before incorporating these new machines into the overall credit union strategy .
"Luckily, the EMV card reader is similar in size to current mag-stripe dip readers and usually is an easy field replacement," said Swain. "Make sure your manufacturer provides an upgrade kit with instructions, so a service technician can properly install it in the field. Take the time to contact [a developer] in a country that has already implemented EMV to see what challenges they faced."
Credit unions that want to upgrade should do so earlier than later because there may equipment shortages as companies race to be outfitted and operational by the October 1 deadline, ATM Guru added.