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Don’t Wait until It’s Too Late: Cummins Allison Advises Financial Institutions on ATM EMV Compliance

AUGUST 16, 2016 Mt. Prospect, IL — In order to reduce the potential for fraud associated with magnetic stripe cards, U.S. credit card companies are issuing new chip cards with EMV technology. EMV-capable ATMs and software are enabling financial institutions (FIs) to make a transition to meet recommended compliance mandates and avoid fraud liability. With an EMV compliance deadline for MasterCard arriving on October 1, 2016,1 FIs need to know how EMV technology may affect their ATM network.

Cummins Allison, the leading innovator of coin, currency and check processing technology, as well as ATMs offers tips on integrating EMV-capable equipment and software to avoid liability risks.

EMV at the ATM

Following the October 1 MasterCard deadline, liability for counterfeit fraud "shifts" to the least EMV-compliant party, and the ATM acquirer (such as the bank or credit union) will have to bear the cost of any fraud. The ATM Industry Association reports that significant progress has been made over the past year in upgrading U.S. ATM fleets, and that 90 percent of ATM operators have at least begun to acquire upgrade components or replacement ATMs.2

There are several steps to ensuring that your ATMs are ready for the October EMV deadline:

  • Evaluate your fleet's hardware, software and network capabilities and determine if your ATMs have EMV card readers. If they do not, contact your sales representative or ATM manufacturer to understand what is needed for the upgrade.

  • Find out what the required investments are and balance them against your capital budget. There are multiple levels of both hardware and software that could require an upgrade. For example, an entire ATM could be so old that it cannot support the software required to run EMV. Or, the hardware could support EMV but the software is too old. Or, the physical ATM could support EMV, but the card reader could be too out-of-date, thus requiring a new reader. In this instance, a software upgrade would more than likely be required in addition.

  • Develop and prioritize an implementation plan. Don't wait until the last minute. It's critical to plan out and complete all necessary ATM implementation activities. This includes interfacing with technical staff, updating documentation and working with vendors to implement the appropriate configuration.³

  • Submit an EMV project to your ATM host processor as soon as possible. It could take as many as 60 days for the processor to complete the request.

If your ATMs are non-compliant, it will be necessary to upgrade the machines' card readers and possibly the ATM itself. This includes upgrading to Level 2 Approved Application Kernel software – a list of Level 2 Kernels is available on the EMVCo website.4 Keep in mind that the cost to upgrade existing and aging equipment could be more expensive than replacing your ATM fleet altogether. It's critical to weigh these costs before investing in card readers, processor and memory upgrades.

A New Generation of ATMs

Over time, ATMs have adapted to new technology and will continue to do so as EMV chip cards are phased in. In addition to being EMV-capable, new ATM options offer improved reliability and greater capacity. This allows FIs to provide better customer service and eliminate liability without incurring unnecessarily high upgrade costs.

To learn more about how advanced ATMs can help FIs offer highly secure and reliable financial services with minimal complications, visit



1 "EMV for U.S. Acquirers: Seven Guiding Principles for EMV Readiness." MasterCardAdvisors.

2 ATMIA 2016 EMV Readiness Report.

3 "EMF Implementing EMV at the ATM," EMV-Connection.

4 Level 2 Contact Approved Application Kernels.


About Cummins Allison

Cummins Allison is the leading innovator and provider of check, currency and coin handling solutions, as well as full-function ATMs. Our world-class sales and service network includes hundreds of local representatives in more than 50 offices in North America, 6 wholly-owned subsidiaries and is represented in more than 70 countries around the world. For more information about our award-winning solutions, visit


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