Visa brings EMV chip card security to ATMs

Visa is extending the security benefits of EMV chip cards to ATM transactions in Asia Pacific and the US to reduce fraudulent transactions.

In Australia and New Zealand the liability shift will apply to all qualifying ATM transactions from 1 April 2013.

This initiative will allow Visa to assign liability for counterfeit fraud at ATMs to whichever party – acquirer or issuer – who has not adopted EMV chip technology by the required timeline. If a fraudulent transaction occurs on an EMV chip card used at an ATM that cannot accept EMV chip-enabled cards, the ATM acquirer will bear the cost for counterfeit fraud. Currently card issuers bear the liability for fraudulent ATM transactions.

“Visa’s roadmap is designed to make the security and flexibility of EMV chip technology available to consumers and issuers in every environment, including ATMs,” said Ian McKindley, Visa’s director of country risk management, Australia and New Zealand.

“This new timeline balances the interests of issuers and ATM operators and provides time to include chip integration into ATM hardware upgrade plans. As a result, the entire marketplace can more quickly realise the strong security benefits of EMV chip technology in this critical channel.”