First Data and MasterCard today announced an agreement in which First Data's STAR Network will participate in MasterCard's common U.S. Debit EMV solution.
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."