In order to encourage the transition to EMV technology to reduce the use of stolen credit card data, Visa has announced plans and incentives for U.S. merchants to deploy the dynamic authentication.
The United States is one of the few industrialized countries that has not yet moved to EMV payments, according to DigitalTransactions.net.
Visa’s new initiatives to speed up the transition to EMV technology includes the Technology Innovation Program expansion into the U.S., a push for merchant acquirers and sub-processors to be able to support chip transactions by April 1, 2013, and a liability shift for domestic and cross-border counterfeit POS transactions to be effective by Oct. 15, 2015.
Dave McKay, a technical sales manager at Bell ID, said Visa’s actions essentially serve as a “cattle prod” and that most merchants don’t just accept Visa so they will still have the cost burden from other schemes,
according to SecureIDNews.com.
American Express and MasterCard will likely take similar steps.
Richard Crone, the CEO at Crone Consulting LLC., said that Visa’s plan is intended to push merchants toward accepting NFC-enabled payments and not EMV.
“Until we get to chip and PIN and see the exponential benefits the merchant is carrying the burden to upgrade the point-of-sale,” Crone said, according to SecureIDNews.com.
According to Crone, Visa is trying to extend its payment infrastructure with the latest move and have merchants pay for it.