The SHAZAM payment network and Visa announced an agreement on Wednesday to allow issuers to use the card company’s common EMV debit solution for Visa- and SHAZAM-branded cards and transactions.
“This agreement reflects nearly two years of industry engagement,” SHAZAM CIO Terry Dooley said. “SHAZAM is proud to have acted as a driving voice in the original SRPc chip-and-PIN working group and the Debit Network Alliance. The network has been active in the EMV Migration Forum, ATMIA, NAC and other industry forums. A collaboration that allowed for merchant and issuer routing choice for contact and contactless payments supporting PIN, no CVM, and signature was our goal, and we believe this agreement provides the terms to accomplish that goal.”
The EMV chip application supports non-exclusivity rules by sharing a debit application identifier for Visa- and SHAZAM-branded cards. The common AID will allow point-of-sale debit transactions and domestic ATM transactions.
“It remains important for all U.S. debit card issuers to evaluate the business case and the industry as they begin to consider a migration to EMV,” Dooley said. “Particularly for smaller issuers, including community banks and credit unions, a cost-benefit analysis that takes into account the institution’s current and predicted fraud risk, as well as the potential return on an EMV investment, is a critical first step.”