It has been announced that the next significant step in Discover’s global EMV deployment will involve a comprehensive strategy and roadmap including Discover Network, Diners Club International, PULSE and Discover Card.
Dicover’s Fraud Liability Policy is to fit in with U.S. EMV migration schedules and will be effective from October 1, 2015 at point-of-sale terminals and Oct 1, 2017 at automated fuel dispensers. This Fraud Liability Shift Policy will be introduced for the Discover Network in the U.S, Canada and Mexico and PULSE in the U.S. It will be a risk-based payments hierarchy that benefits the entity that leverages the highest level of available payments security.
Discover will grant annual PCI audit waivers for merchants that process 75 per cent of Discover Network transactions via terminals supporting both contact and contactless payments, starting in October 2013. As Discover looks to gradually start replacing its current cards with chip cards in the coming years, card members also will benefit from the enhanced security EMV provides, as PULSE EMV Deployment.
PULSE, a Discover Financial Services company and one of the nation’s leading debit/ATM networks, will capitalise on Discover’s already significant EMV-deployment experience by using the D-Payment Application Specification (D-PAS) to allow EMV transactions at the point of sale. PULSE in addition to introducing Fraud Liability Shift, will also require U.S direct-connect merchants and point of sale acquirer processors to support EMV data.
PULSE is also collaborating with other debit networks and industry work groups to facilitate interoperability among card brands and to enable merchants to route debit transactions consistent with the requirements of the Federal Reserve’s Regulation II.
PULSE’s implementation of D-PAS supports all cardholder verification methods and its U.S implementation of EMV is expected to feature broad support for online PIN-authenticated transactions as the most secure cardholder verification method.
“Our timeline to support chip-based credit and debit transactions, in addition to our Fraud Liability Shift policy, are critical milestones to helping make EMV a reality in the U.S,” said Diane Offereins, President of Payment Services at Discover.
“As with the Discover mandate announced earlier this year, our approach to EMV enables participants to select verification methods and transaction types that meet their organization’s needs,” she added.