RANCHO CUCAMONGA, Calif. (3/19/13)--CO-OP Financial Services supports and voted in favor of the Secure Remote Payment Council (SRPc) Chip and PIN Workgroup's agreement on a common U.S. debit application identifier (AID) and application for Europay, MasterCard and Visa (EMV) deployment. But CO-OP urged credit unions to be cautious on deploying EMV until 2014.
SRPc announced Tuesday that 10 of its debit network members agreed to adopt a common U.S. debit AID and work with Discover Financial Services to license the D-Payment Application Specification, known as D-PAS, as the foundation for the common U.S. debit chip payment solution.(Use the link to access the press release)
Adoption of the AID and application "is extremely important to credit unions because it preserves their routing and network choices in connection with the emerging EMV standard," said Stan Hollen, president/CEO, CO-OP Financial Services.
"As a founding member of the Workgroup, CO-OP has actively participated in the SRPc to represent the interests of credit unions, and we will continue to help drive next steps, both in governance and deployment of the common U.S. debit AID and application," he said.
"While this solution simplifies efforts for the industry, commercialization will take time," Hollen continued. "Given that EMV is being driven by liability shifts, not regulatory or network mandates, we recommend that issuers wait until 2014 before moving forward with their business case for EMV deployment in order to ensure that the market is ready."
He noted that in the coming months CO-OP will provide guidance to its client credit unions "in the form of multiple tools to help them determine their own roadmap for EMV. This will include tactical advice on upgrading ATMs, issuing debit cards with the common AID, what to do about credit, how to calculate the economics of switching to EMV and related fraud trends."
SRPc's announcement said the Workgroup "will also evaluate enhancing the specification's security by including the one-time card number technology developed by First Data/STAR specifically to mitigate impact from skimming and data breach frauds."
CO-OP Financial Services will host a free webinar on March 26, at 11 a.m. PT to discuss the latest developments concerning the EMV standard. For more information, use the link.
The SRPc is a trade association focused on security standards for Internet- and mobile-based payment methods, including EMV. For more information on EMV, visit the "Ask the EMV Expert" page on CO-OP's website by clicking on the link below.