EMV - The time is now

Back Office Solutions Consulting Manager

The next EMV deadline is looming large.  By April 2013, U.S. merchant processors must have their systems ready to process EMV transactions.

At the same time, U.S. ATMs accepting Maestro chip cards will be subject to the MasterCard liability shift.   In just over two years, the first major liability shifts affecting card issuers and merchants will be in place.

Two years seems to be a long time in payments considering how much has changed in the last 24 months.  But in the world of technology development and deployment, 24 months isn't that far away. Let me walk you through an example which will help you understand that now is the time for card issuers to hasten their EMV migration plans.

Assuming a core team is already meeting on a regular basis, below are some high-level guidelines that have been successful from EMV roll-outs worldwide:

Month 1:     

Develop card replacement timing and strategy considering Debit, Credit and Prepaid and long term direction for Mobile payment instruments.

Research options and strategy regarding EMV Data preparation and lifecycle management.  Do you outsource or deploy in-house solution?

Work with in-house systems, vendors and suppliers to determine best technology options to meet your strategic needs.

Month 3:     

Strategy and in-house vs. outsource solution decisions made.

Month 4:     

Review vendor / supplier solutions and services and work through the business case.

Month 8:     

Select vendors and suppliers of choice.

Month 10:   

Start implementation and integration project with all existing systems and processes, vendors and suppliers.

Month 18:   

Complete implementation project and begin live testing with pilot clients

Month 24: 

Start issuing EMV cards according to replacement strategy.

If you have not already, you should be starting your own 24 month process no later than Q1 2013. The above simple timeline does not take into account other important factors such as consumer education, marketing, contingency planning, etc.  Best practice would say all this needs to be addressed nine months in advance of any roll-out.

Despite a slow take up in 2012 and a clear upside for the business case for EMV, the industry is collaborating and the newly-formed EMV Migration Forum promises great things.  It is very rare to get merchants, issuers, acquirers, networks and vendors in the same room talking about the same topic for the benefit of the industry.   From our perspective the industry seems willing to embrace EMV in 2013 and now is the time is for serious EMV planning and adoption. What are you waiting for?