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EMV: Where we are on change.

Many card issuers are still not changing their scheduled plans in regards to their EMV timelines, despite the holiday breaches and Target’s recent fast-track plans. Since the breaches, Target representatives and executives have vowed to  adopt EMV at least six months before the EMV Deadline.  The reason that issuers aren’t accelerating their efforts seems to be due to a lack of return on investment.  Render Dahiya, CEO of Chicago-based card provider Arroweye Solutions says, “Even though the Target breach has scared people there is a significant value out there when you look at the costs”.

Target alone does have the resources to make the switch to EMV early next year, and still plans on delivering on its promise for an earlier transition. However, “One remains skeptical that EMV will ever take place,” says Dahiya. Media coverage of the breaches played a massive role in giving off the impression that all issuers might move more quickly with the EMV transition. “But they are sticking with their wait-and-see approach, especially on the debit side… One said that credit cards are a clearer path and that would be the first to move. Learn some lessons then move to debit later in 2015”.

The breaches did create a “timing issue” - do the issuers fast track their process of issuing cards only to have to replace them again by the deadline? Fidelity National Information Services V.P. of product, Bob Legters  says “To reissue now and then reissue again for EMV in a year is a big question issuers are asking”.  Originally, issuers working with FIS had planned to wait until late 2015 to issue EMV cards as magnetic cards expired. However, Legters acknowledges that the breaches did motivate issuers to consider other strategies.

“One advantage Target gives to the issuers is they get an opportunity to advertise the advantage of a chip card… Without some level of a breach in the marketplace and the heightened awareness, it would be more difficult to put out a product for security as a value-add”.

Source - ISO&Agent

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