It's been reported that 70% of the daily transactions at Walmart and Target are made with chip cards. No doubt there has been a rise in the number of merchants accepting chip cards. But still, only 41% of overall merchants are ready to accept EMV payments. So, what does the future hold for an EMV card holding consumer?
Thanks to CUInsights, we are able to share the following trends that credit unions, merchants and consumers alike may notice this year:
American Express and other national brands moving to dual-interface: Dual-interface cards are contact cards that also enable contactless payments. This gives cardholders the added security of EMV, while allowing them to make tap and go payments. Credit unions issuing these dual-interface credit cards have an extra arrow in their quiver, giving cardholders the ability to conduct transactions at any terminal.
The sun setting on MSD technology: MSD refers to magnetic strip data, an older method of reading contactless payment transactions. Merchants trying to read current contactless EMV transactions using MSD technology have experienced frequent card declines. Visa and MasterCard are pushing to complete a shift away from this technology by 2017. They are also currently looking for strategies to steer merchants away from MSD technology.
Quick service restaurants migrating to EMV acceptance: McDonald’s has already begun migrating to EMV. Once McDonald’s streamlines its transaction flow to align with its emphasis on speed, other restaurants may follow suit. EMV terminals may even be implemented right at dining tables, enabling fast and easy bill payments at sit-down restaurants.
ATM and fuel dispenser migration in 2017: The next big step following the October 2015 liability shift is for ATMs and fuel dispensers to migrate to EMV. The migration process for these terminals will be slower than merchants as the implementation costs are much higher. Visa and MasterCard propose that credit unions, fuel retailers and other locations with ATMs should make the shift by 2017.
Merchant unification for POS activity: There has not yet been a standard established for how EMV chip cards are processed or how the transaction flows through each application. As a result, cardholders making a transaction at one merchant’s terminal may not have the same transaction experience somewhere else. Once a standard procedure is established across all EMV terminals, there will be a more consistent, efficient transaction flow for cardholders.
