This agreement, combined with other recent industry announcements, provides a cost-effective solution and accelerates the ability for EMV functionality to be implemented across the U.S.
EMV/ chip cards better protect account information from fraud because they have dynamic data, rather than the static data stored in the magnetic stripe.
By working together, MasterCard and First Data will deliver enhanced choices in how debit card issuers identify and apply multiple network relationships to ensure Regulation II compliance in a cost-effective way. Merchants and acquirers will continue to route transactions as they prefer, without costly host systems reprograming.
“First Data again demonstrates its leadership position in the advancement of EMV in the U.S. with STAR being one of the first debit networks to assist issuers, acquirers, and merchants with equal access to a shared EMV chip card technology, without restrictions on cardholder verification methods,” said Barry McCarthy, president, First Data Financial Services. “This agreement, and other EMV agreements we have recently announced, helps accelerate the migration to EMV adoption, and moves the entire industry a step closer to additional debit payment security,” McCarthy added.
In January 2013, MasterCard was the first network to offer its proprietary technology to other U.S. debit networks in an effort to support the migration to EMV and enable the routing of PIN debit transactions over multiple, unaffiliated networks. This decision allows acquirers to brand transactions originating from the U.S. common AID (application identifier) for any debit networks that elect to participate.
“Today’s announcement clearly reinforces that the time is now for EMV here in the U.S.,” said Chris McWilton, president, North American Markets, MasterCard. “The industry has come together to identify the requirements for a common debit EMV solution to allow one application on each card. This agreement with First Data and the STAR Network will help accelerate the implementation of the more secure chip technology by our customers and cardholders.”
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Pioneers Blog and subscribe for the latest news on the Engagement Bureau.
About First Data and the STAR Network:
First Data’s STAR Network is one of the nation's leading electronic funds transfer (EFT) networks, with more than 2 million retail and ATM locations. First Data is the global leader in payment technology and services solutions.
Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive client revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction. More information about the company is available on FirstData.com as well as on Twitter, LinkedIn, Facebook and YouTube.