Visa and MasterCard announced on Tuesday that they would license their respective debit solutions in the U.S. to each other in order to streamline transaction routing over numerous, unaffiliated networks.
The companies have licensed their proprietary EMV chip technologies to each other and other networks, which will allow a single debit chip transaction to be routed to Visa, MasterCard or another U.S. debit network with the same solutions.
“This approach offers issuers, acquirers and merchants a streamlined solution for debit chip card routing, helps ensure a cost-effective migration, and enables even broader adoption of secure, convenient chip debit programs in the United States,” Elizabeth Buse, the global executive of solutions at Visa, said. “Importantly, this solution allows merchants and acquirers to deploy payment terminals using existing chip technologies that are already widely integrated into existing chip card acceptance solutions.”
Issuers can load their brand onto either Visa or MasterCard to route transactions over any participating PIN debit network in the U.S., consistent with the EMV Migration Forum’s recommendations towards the need for a single common application identifier and application on each card.
“This represents our continued commitment to advance the adoption of the most advanced payment solutions and security standards in order to deliver maximum value to merchants, consumers and issuers,” Chris McWilton, the president MasterCard North America, said. “By providing every U.S. debit network with an efficient, market-ready answer, we are delivering a proven solution that not only preserves merchant routing choice, but ensures seamless interoperability with all other EMV programs across the globe.”