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Michelle Thornton

Get free access to fast, personal answers to EMV® questions from CO-OP's EMV and payment specialist. Senior Product Manager Michelle Thornton has served in payment management roles for 16 years, including three years at CO-OP. As a member of the Secure Remote Payment Council (SRPc) working group, she is involved in defining and adopting a POS and ATM solution for chip and PIN acceptance for PIN debit networks.

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1.
Q:
What is EMV?  read more »

What is EMV?

A:

EMV® is a global standard for credit and debit payment cards based on chip card technology. As of Q3 2011, there were more than 1.34 billion EMV compliant chip-based payment cards in use worldwide.

EMV chip-based payment cards, also known as smart cards, contain an embedded microprocessor, a type of small computer. The microprocessor  chip  contains  the  information needed to use the card for payment and is protected   by   various   security   features.   Chip cards are a more secure alternative to traditional magnetic stripe payment cards.

2.
Q:
With the upcoming migration changes specifically the Windows 7 operating system is this a mandatory... read more »

With the upcoming migration changes specifically the Windows 7 operating system is this a mandatory requirement? Our concern is that the machines we have are not compatible with the Windows 7 operating system and new machines will need to be ordered. If the budget is not approved in time where we can order and have the machines installed by April 2014 will there be any type of violation or penalty? Would the machines need to be shut down until they can be replaced?

A:

There is no mandate to make your machines EMV capable. There is a liability shift, but the domestic portion of that does not go into effect until 2017 for Visa and 2016 for MC. So you can continue running magstripe only for as long as it makes sense for your credit union and fraud experience. While Microsoft annouced support for Windows XP will cease by 4/2014, there is no mandate to migrate to Windows 7. We encourage CU to analyze their risk and security exposure on their ATM if EMV is not enabled or Windows 7 is not installed. NCR Edge 5.0 will support both EMV and Windows 7.

3.
Q:
I have a question in regards to the Mastercard/Maestro EMV at the ATM. Maestro is... read more »

I have a question in regards to the Mastercard/Maestro EMV at the ATM. Maestro is not one of our ATM networks however Cirrus is. Is Cirrus considered MasterCard? If so do our ATM's need to be EMV capable to avoid the cross-border couterfeit fraud-related liablity if a non-US issued EMV card is used at one of our machines?

A:

No, the cross border is only Maestro. Cirrus transactions will fall under the later MC liability shift in 2016. We encourge CU to review their Institution fee Summary report to ensure that you are not acquiring international maestro transactions

4.
Q:
My question is regarding the end of support date of April 2014 for XP. Since... read more »

My question is regarding the end of support date of April 2014 for XP. Since Windows 7 is not going to be certified on the Edge 5.0 which is needed for EMV until August how are we going to be expected to be compliant by the April 2014 date?

A:

There is no mandate to make your machines EMV capable. There is a liability shift, but the domestic portion of that does not go into effect until 2017 for Visa and 2016 for MC. So you can continue running magstripe only for as long as it makes sense for your credit union and fraud experience. While Microsoft annouced support for Windows XP will cease by 4/2014, there is no mandate to migrate to Windows 7. We encourage CU to analyze their risk and security exposure on their ATM if EMV is not enabled or Windows 7 is not installed. NCR Edge 5.0 will support both EMV and Windows 7.

5.
Q:
In your white paper you cite costs to migrate to a chip card between $25... read more »

In your white paper you cite costs to migrate to a chip card between $25 000 and $60 000 based on the requirements of the credit union. Do these cost numbers include the upgrade of the credit union's ATM hardware to be able to read and process EMV cards?

A:

Those costs were for the issuing side. On the acquiring side, the costs are much lower. If you need to upgrade a reader only, that cost is in the $2000 range. The software generally is in the $1000 range, plus any testing costs. If you need to replace the ATM, then you have the $10,000 to $60,000 range depending on the type of machine.

6.
Q:
We use a product called Lynxgate to drive our ATMs. They are working to update... read more »

We use a product called Lynxgate to drive our ATMs. They are working to update their product so that we can be EMV compliant. They have requested that I get the EMV specifications for acquired transactions from our switch processor (COOP). When I called I was directed to you. Thanks for your assistance.

A:

Intercept Processor specifications were listed in our 2013 Spring Mandate Notice. You may find the information you need in that publication.

7.
Q:
I understand the POS liability shift in October 2015 shifts to the merchants if they... read more »

I understand the POS liability shift in October 2015 shifts to the merchants if they do not process as an EMV and vice-versa for the issuer if they do not have EMV cards but where will the fraud liability fall if both merchant and issuer are EMV compliant and fraud occurs? Will it be pretty much the same as it is today and fall on the issuer?

A:

Yes. If both issuer and terminals are EMV, it is status quo.

8.
Q:
What is the status of CU/sAcquirers accepting EMV transactions at thier ATMs. What are the... read more »

What is the status of CU/sAcquirers accepting EMV transactions at thier ATMs. What are the switch specifications and details the CU's host processors will need to support these transactions?

A:

Intercept Processor specifications were listed in our 2013 Spring Mandate Notice. You may find the information you need in that publication.

9.
Q:
Is there a list of dates by which we need to be "EMV" ready as... read more »

Is there a list of dates by which we need to be "EMV" ready as an acquirer and issuer so that we can avoid and shift fraud related liability?

A:

The liability shift dates are as follows, but understand that if terminals and cards are both EMV, there will be no liability shift, it will remain status quo. It is only if one or the other is NOT EMV that the liability will shift. MC has some nuances to that based on PIN versus signature, but in essence that is the result. Issuing: Liability shift October 2015, AFD 2017. ATMs: International Maestro April 2013. All MasterCard October 2016. Visa October 2017.

10.
Q:
Do you have any information on the actual transaction cost of an EMV transaction to... read more »

Do you have any information on the actual transaction cost of an EMV transaction to allow us to compare it to and budget for this difference?

A:

Costs are still being finalized but at this point the incremental transaction costs are very reasonable.  The costliest piece of EMV is setup and certification, which is still very high for early adopters.

11.
Q:
It appears that by April of 2013, we need to have our ATMs EMV capable... read more »

It appears that by April of 2013, we need to have our ATMs EMV capable to avoid the liability shift for Maestro ATM transactions. Can you please clarify?

A:

There is a liability shift for Maestro transactions acquired at U.S. ATMs beginning April 2013.  However this is for cards used at your ATMs issued by international financial institutions and only applies to Maestro transactions.  We recommend that you evaluate your international Maestro transactions at your ATMs to determine when you might want to upgrade those ATM's.  You can use CO-OP Total Revelation to easily determine this.  Once you have that volume by ATM, you will be able to build the business case for each ATM.  Some ATMs may rarely if ever acquire international Maestro transactions while others may have higher volumes.  CO-OP will be launching the MC EMV application for ATMs the first quarter of 2013 for some of the newer models of NCR and Diebold machines.  However, you will eventually need to load other EMV applications, like the VISA application or a PIN debit application and may want to wait until the industry has resolved some of the interoperability issues with EMV before moving forward. - See more at:

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