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Cards Corner: ATMs and EMV

By: Amy MacMullen, Director of Card Services

Amy MacmullenNovember 24, 2014 -- ATMs are an important component of the move to EMV (Europay, MasterCard, Visa) payment technology, commonly known as “chip” payment technology. And in order to make the transition as painless as possible, ATM owners need to know what they will be facing.

To help drive the implementation of EMV, Visa and MasterCard are also imposing a liability shift on ATM owners (the timeline for ATMs is different than the EMV Point of Sale (POS) requirements, which is October 1, 2015). MasterCard’s ATM deadline is October 1, 2016, and Visa’s ATM deadline is October 1, 2017. This means that if fraud occurs when an EMV card is used at an ATM that is unable to process an EMV transaction after these respective dates, the ATM owner will bear the full cost of the fraud. Likewise, if an ATM is EMV-capable and a non-EMV card is used, the liability rests with the card issuer.

ATM manufacturers have also mandated to upgrade all machines to Windows 7 by April 1, 2014; however, not all machines have been upgraded. Credit unions that have not upgraded to Windows 7 should consider combining this upgrade with the EMV enablement to avoid additional costs and resource time. Depending on the brand of equipment, there are also minimum software requirements, an upgrade to the card reader to accept ATM cards, and to make sure their central processing unit (CPU) has enough memory. The current requirements are summarized in the graph below:

ATM Table
Source: PSCU

ATM owners will need to consider how the implementation of EMV and how newly imposed deadlines may impact their ATM systems. For more information about getting your credit union’s ATM’s EMV compliant prior to the liability shift, feel free to contact me to learn more.

Amy MacMullen
Director of Card Services


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