ATMs affecting EMV development in the U.S.
The U.S. is set to change over to the EMV standard of chip-based credit and debit cards soon, and ATMs have a major impact on how they develop. The October 2015 deadline MasterCard and Visa imposed for businesses to switch over to the standard is getting much closer than people imagined. As a result of this, many banks are moving to change their ATMs so they function with these cards. Key figures in the banking and payments industries are pushing to accelerate the migration so all businesses are ready for the changeover.
In February 2013, the EMV Migration Forum, the collective of companies that are guiding the transition process in the private sector, announced a new steering committee for the 2015-2016 session. With 175 member organizations from all parts of the business world, the forum's Steering Committee will be leading the process at its most critical moment. One of the working committees for the business will manage how ATMs handle the new card standard as the primary deadline of Oct. 1 approaches.
The process of EMV migration is expected to accelerate in the coming months, according to the EMV Migration Forum. At the end of 2014, 120 million chip cards were issued to Americans, both in debit and credit forms. That number is expected to rise to 600 million by the end of 2015, thanks to a combination of marketing, education and new issuances by banks and other companies.
However, the migration process has not reached a critical mass at this point. A survey from CreditCards.com in February 2015 found that only 26 percent of respondents had an EMV card of any kind, while 31 percent of those with credit cards said theirs had a smart chip. As banks transition, they should make sure ATMs are compatible with this new feature to gain the benefits.