Policy makers in the US voiced concerns at a meeting last week that credit card networks and issuers have failed to effectively explain the implications of the Oct. 1 EMV liability shift to merchants, leaving many small businesses confused.
Rep. Nydia Velazquez said the EMV transition should lead to lower interchange fees, and
asked whether Visa will commit to lowering such fees commensurate with any fraud reductions.
Visa executive Stephanie Ericksen responded that card networks still need to invest significant time and resources combating fraud. Nevertheless, financial services executives at the hearing voiced support for the EMV switch over.
TCM Bank CEO Paul Watson stressed the Oct. 1 shift was not a deadline, but instead “a catalyst for change. Most small businesses are taking a very prudent approach to this migration. They are not buying from the first terminal salesman that makes the phone call.”
State Department Federal Credit Union CEO Jan N. Roche said EMV is “the new market standard for combating fraud at the point of sale,” but cautioned it is not a cure-all to data theft. She said a truly secure payment system requires deployment of numerous authentication technologies, such as biometrics, tokenization, and various kinds of encryption.