5 New Insights Into EMV Implementation

Jackson Lewis, Associate Editor

Credit card EMV

PRINCETON JUNCTION, N.J. -- The U.S. Payments Forum released its summer 2017 market snapshot, providing updates on the progress of the U.S. Europay, MasterCard and Visa (EMV) migration.

The report also discusses improvements in the consumer’s chip-transaction experience at the point of sale (POS) and priorities for the second half of 2017 to focus on unique chip-migration challenges in merchant segments, including the convenience and petroleum industry.

Here are five insights from the report …

1. Increase in chip transactions

Credit card transaction

Reports on credit and debit EMV chip-card issuance and chip-on-chip transactions show continued growth in the United States, according to consolidated data from global payment networks. Today, approximately 45% to 50% of U.S. credit and debit transactions are chip-on-chip transactions.

“It is encouraging to see the number of chip-on-chip transactions on this upward trajectory,” said Randy Vanderhoof, director of the U.S. Payments Forum. “To see significant declines in fraud, chip-on-chip transaction rates will need to account for approximately two-thirds of all credit and debit transactions, and with this reported growth, it is clear we are on the right track toward removing counterfeit card fraud from the system.”

The global payment networks also report that approximately 50% of merchants are now enabled for chip transactions.

2. Cutting down transaction time

Credit card

Perception of transaction speeds has been one of the most frequently cited concerns regarding the consumer experience at a chip-enabled POS terminal. For many merchants, the primary focus has been on becoming chip-enabled to avoid counterfeit fraud liability. With more merchants enabled, they are now able to put more focus on improving transaction speeds and have seen improvements by as much as four to eight seconds.

“Shaving seconds off chip transaction times is significant,” said Vanderhoof. “As the U.S. continues to make progress in the migration to chip, we’ll see more improvements in the consumer experience, whether by merchants optimizing their chip acceptance processes at the checkout lane or through new ways to pay, like increased consumer use of mobile devices and wearables, more contactless cards being available and more seamless omnichannel experiences.”

The U.S. Payments Forum published a white paper earlier this year, “Optimizing Transaction Speed at the Point of Sale,” which includes solutions put forward by the forum to cut down on transaction times.

3. Streamlining the process


The report says checkout times are also being lowered through retailers’ addition of new functionalities and payment options such as debit chip cards and contactless payments after their initial chip implementations. This is owed to the certification process being streamlined without impacting security measures, which allows merchants to achieve second and third certifications for new features and payment methods more quickly.

For retailers looking for resources on certification, the forum published a new glossary of testing- and certification-related terminology to expand on the white paper, “Current Global Payment Network Requirements for the U.S. Acquiring Community.”

4. C-store shoutout

Gas pump

The report acknowledges the special case of the convenience and petroleum industry and its “unique considerations” regarding EMV at the gasoline pump.

For these and other industries with special chip-implementation considerations, the forum is planning educational outreach campaigns to provide best practices, implementation guidance and other resources addressing the unique challenges at hand.

The report encourages those who want to contribute to the conversation on EMV chip migration to attend the forum’s next member meeting from Sept. 12-13 in Rosemont, Ill.

5. Additional resources

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The U.S. Payments Forum has published several white papers and other resources for those looking for more information on the EMV chip migration. These resources include:

  • EMV Receipt Best Practices” white paper. This white paper aims to clarify applicable recommendations and requirements regarding data elements most commonly found on receipts for chip-on-chip transactions, and focuses on EMV-related items.
  • PIN Bypass in the U.S. Market” white paper. This updated white paper describes PIN Entry Bypass and details the transaction flow and the impact on issuers, merchants and cardholders.
  • Testing and Certification Terminology Glossary. This resource compiles a list of terms used in acquirer EMV testing and certification forms, and was developed as an educational resource to assist merchants in completing the acquirer testing and certification forms used for EMV certification.
  • Understanding the U.S. EMV Liability Shifts” white paper update. This white paper, first published in June 2015, has been updated to provide information to help those implementing chip technology at the ATM or at automated fuel dispensers to better understand liability shifts.

The Princeton Junction, N.J.-based U.S. Payments Forum is a cross-industry body focused on supporting the introduction and implementation of new and emerging technologies that protect the security of, and enhance opportunities for, payment transactions within the United States.