More than half a year into nationwide Europay, MasterCard and Visa adoption, banks have an opportunity to step back and look at the impact the transition had on improving ATMs and the overall branch experience.
Businesses moved toward accepting the EMV standard, which uses a microchip to store payment data on credit and debit cards, in response to an increase in costly data breaches involving hackers stealing transactional information from payment processors at major retailers. In late 2015, fraud liability officially shifted so that in the event of a security issue at the point of sale, whichever entity was not compliant with the EMV standard at the time of the purchase is held responsible for any associated damages.
The technology has caught on quickly so far, both among businesses and consumers. A recent article in PaymentWeek reported 68 percent of all MasterCard credit cards were EMV-compliant on April 30, 2016. More than 1 million merchants switched to EMV-ready payment terminals by the same date as well. Financial institutions join the retail industry in having unique incentives to update their existing technology to ensure security and maintain trust with their customers.
The transition hasn't been without its challenges. According to a press release from payment processing firm Cayan, many consumers and businesses have expressed concern about the speed of EMV-compliant transactions. However, the right technology and planning can make all the difference in helping a financial institution make the transition as seamless as possible.
ATMs that come hardware-ready for EMV compliance can limit the transition time necessary for any organizations that still need to make the full switch to the new system. As a result, banks can start leveraging the benefits that come with offering more secure technology for their customers who visit their branches to take out cash or deposit checks on a daily basis.
June 24, 2016