Browse Prior Art Database

The Migration to EMV Chip Technology: EMV Implementation in the U.S.

IP.com Disclosure Number: IPCOM000244623D
Original Publication Date: 2011-Jan-01
Included in the Prior Art Database: 2015-Dec-30

Publishing Venue

Undisclosed

Abstract

Exploration of the challenges and solutions to the EMV migration in the Us.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 10% of the total text.

Page 01 of 12

The Migration to EMV Chip Technology

IIIIII EMV Implementation in the U.S.

http://www.gemalto.com



Page 02 of 12

IIIIII Table of Contents


1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
2. Why EMV and Why Now? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
3. What is EMV? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
4. Benefits of EMV to Issuers and Merchants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
5. Benefits/ Considerations for EMV in the U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
6. A Good Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
7. Summary and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
For More Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover


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The Migration to EMV Chip Technology

IIIIII EMV Implementation in the U.S.


1. Introduction

Most of the world has fully migrated or is in the process
of migrating to EMV chip technology for debit and credit payments. According to EMVCo, approximately 1.2 billion
EMV cards have been issued globally and 18.7 million POS devices accept EMV cards as of Q1 2011. This represents
40.1 percent of the total payment cards in circulation and 71 percent of the POS devices installed globally [EMVCO2011].

Given the prevalence of EMV chip technology in the rest of
the world, many have questioned if and when the United
States would move to EMV. U.S. financial institutions started
issuing EMV chip cards to their frequently traveling customers;
however the country seemed to be a long way off from acceptance [Gemalto2011]. All of this changed on August 9, 2011 when Visa announced plans to speed up chip migration and adoption of mobile payments in the United States. Visa announced a three-part acceleration plan [Visa2011]:

> Expand the Technology Innovation Program to Merchants in the U.S.

Effective October 1, 2012, Visa will expand its Technology Innovation Program (TIP) to the U.S. TIP will eliminate the requirement for eligible merchants to annually validate their compliance with the PCI Data Security Standard
for any year in which at least 75 percent of the merchant's Visa transactions originate from chip-enabled terminals. To qualify, terminals must be enabled to support both contact and contactless chip acceptance, including mobile contactless payments based on NFC technology. Contact chip-only or contactless-only terminals will not qualify for the U.S. program. Qualifying merchants must continue to protect sensitive data in their care by ensuring
their systems do not store track...