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| Thursday, May 23, 12:15:06pm | [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, 5, 6, 7, 8, 9, [10] ] |
| Subject: Key elements hardware such as ATMs and POS terminalsissuing smart cards to customerssome caseschanging host systems to support EMV. | |
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Author: Middle East deadline for EMV 2006. |
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Date Posted: Tuesday, February 11, 05:44:01am I know Pork--Intellect still screams out to be bought even though it has risen already! LOL (anyway as you appreciate this is the ERG ship--don't forget Intellect is a var for Proton.) Not to mention ofcourse system integration between CAT and Intellect is complete, which seems to fit in quite well with the story you have posted on the loyalty aspect. ----------------------------------------------------------- pourquoi5 (ID#: 224751) 70% Euro Banks Smart Card Loyalty 11/2/03 11:28:58 PM 6024631 ----------------------------------------------------------- Report of a study re smart card migration in Europe. This is the best sentence:"Around 70 percent of banks surveyed anticipate utilising smart card technology to offer loyalty programmes.." ----------------------------------------------------------- Cards International February 2003 ----------------------------------------------------------- While EMV migration is accorded high priority by European banks, 48 percent are still at the planning stage and over 10 percent look set to miss the 2005 deadline for EMV compliance. ----------------------------------------------------------- With the 2005 deadline looming, European banks are gearing up for EMV migration, but may not be progressing fast enough, according to a new study* undertaken by financial technology research house Finextra. The key elements of EMV migration include installing new hardware such as ATMs and POS terminals, issuing smart cards to customers and in some cases changing host systems to support EMV. ------------------------------------------------------------ Of the 38 European and Middle Eastern banks surveyed by Finextra, 55 percent have fitted their existing ATMs with smart card readers, while 20 percent have rolled out EMV-compliant POS terminals. Only 15 percent have issued smart cards to their customers and 75 percent claim that their host systems are not yet ready to process EMV transactions. This latter element is described by Finextra as "a critical cost issue for banks, as any change to the host system involves major synchronisation and integration issues." ------------------------------------------------------------ Cost of non-compliance ------------------------------------------------------------ The cost of non-compliance with EMV migration by the appointed deadline is financial liability for losses incurred through fraudulent transactions. Currently the cost of losses caused by card fraud are met by card issuers. For issuers that upgrade their cards to EMV-compliant smart cards, financial liability for card fraud will shift to the merchant if it has not installed EMV-compliant POS terminals or to the merchant acquirer, if it has. ------------------------------------------------------------ As from the EMV compliance deadline, which is 1 January 2005 in most of Europe, liability for fraud losses will flow down the chain to the party that is not EMV-compliant. In the event that all parties are EMV-compliant and a fraud occurs, financial liability for the loss will fall on the merchant acquiring bank. ------------------------------------------------------------ Budget constraints ------------------------------------------------------------ Budget restrictions are the main constraint on progress towards EMV migration, cited by around 60 percent of the banks surveyed. This is particularly the case for banks in countries, where a relatively low incidence of fraud undermines the case for EMV migration. A lack of support from the card schemes and the absence of domestic card standards are also cited as constraints by around 36 percent and 29 percent respectively of banks surveyed. ------------------------------------------------------------ Business drivers ------------------------------------------------------------ The main business driver for EMV compliance is undoubtedly the need to reduce card fraud. This is particularly the case in the UK where fraud losses cost the credit card industry nearly £430 million in 2002. Three quarters of the banks surveyed see the cost savings from reduced fraud as the major benefit of EMV compliance. ------------------------------------------------------------ In France, for example, the early introduction of PIN authentication (made possible by smart card technology) in the 1990s has reduced card fraud by around 95 percent. ------------------------------------------------------------ For banks in countries with a lower incidence of fraud than the UK, the potential of smart cards to support multiple applications is also a strong driver. ------------------------------------------------------------ Around 70 percent of banks surveyed anticipate utilising smart card technology to offer loyalty programmes, while around 40 percent are considering offering an e-wallet facility and a further 40 percent plan to offer a mobile phone top-up facility. Just over 30 percent plan to offer payment facilities for utility bills. ------------------------------------------------------------ Regional variations ------------------------------------------------------------ According to Finextra, the UK with its proposed public trial of smart cards in March, is well advanced in its migration to EMV, as are the four Scandinavian countries, where "there is an interest in embracing new technology and minimising fraud while opening up multi-application possibilities." ------------------------------------------------------------ Spain too is thought to be making reasonable progress, while the Netherlands does not see EMV compliance as a high priority, due to comparatively low usage of credit cards and relatively low levels of debit card fraud. ------------------------------------------------------------ According to Roeland van Pinxteren, associate director at LogicaCMG, members of Interpay, the Dutch bank-owned clearing organisation plan to meet early this year to discuss the EMV issue and develop guidelines on how and when Dutch banks will migrate. Finextra concludes: "Most Dutch banks have a varying awareness of the issue, but have yet to start on EMV projects." ------------------------------------------------------------ The recent adoption by the Saudi Arabian Monetary Agency (SAMA) of EMV standards is thought likely to spur migration in the Middle East, where the deadline for EMV compliance is 2006. ------------------------------------------------------------ The weakest link ------------------------------------------------------------ Visa expects 75 percent of cards and 90 percent of terminals in countries in the European Union (EU) to be EMV-compliant by the deadline of January 2005. To prevent fraud simply moving to the weakest link in the chain, EMV migration in the EU will be followed by Central Europe, the Middle East, Asia-Pacific, Latin America and North America, with a view to lowering the estimated annual loss of $2.5 billion claimed by card fraud globally. ------------------------------------------------------------ [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| International Standards | ISO 7816 EMV ETSI C-SET | Tuesday, February 11, 05:59:20am |