ATMIA Believes Court's Interchange Ruling Will Affect EMV Migration

A New Challenger Bank Launches With Rich Debit Card Rewards

A New Challenger Bank Launches With Rich Debit Card Rewards

From ATM Marketplace:

The ATM Industry Association has expressed concern that the July 31 decision by the U.S. District Court of the District of Columbia, which overturned Fed rules on debit fee caps and routing choice will inject unwelcome uncertainty into the debit world.

“This decision could completely stall progress toward development of the debit solutions necessary for the vast US EMV migration,” said David Tente, executive director USA for ATMIA, “With one liability shift passed and others looming in the near future, we’re already seeing that the court’s action has created a heightened level of confusion in the industry.”

Although the Durbin rules on routing choice never applied directly to ATM withdrawal transactions, most of those transactions today are initiated by consumer debit cards, which are used for retail purchases.

The continuing industry debate over how and when to construct a workable EMV framework and timetable for ATMs complicates an already-confusing implementation discussion. With such headwinds, financial institutions that are already confused about what to do will have even more discussion points to consider.

With such disagreements from various industry stakeholders, banks will likely have to go it alone to determine the level of effort and timetable that best suits their – and their customers’– needs with regard to ATMs and EMV. For more information on this topic, see the recent Mercator Advisory Group Viewpoint ATMs and EMV: A High Cost with a Slow Return on Investment.

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