Yakima, WA -- (SBWire) -- 07/28/2016 --Following the steps of Visa, Mastercard Inc. is releasing on Monday a new policy aimed at speeding up the testing and certification of EMV chip card terminals at U.S merchant locations.
The new change the company is making to their policy will allow the firm to cut test time from a couple of weeks to a couple of hours, following a similar move made by Visa last week. Not only will they be changing their policy, but they have also stated that drastic improvements will be made to its EMV-related chargeback policy to ease the flow of counterfeit card chargebacks now for the first time hitting merchants that are not yet capable of accepting chip cards.
MasterCard says this new policy will give a lot more freedom to the consumers to either follow the network's testing procedures or conduct some other kind if they like to, thus giving them a lot more responsibilities. By doing so, the company says it is reducing 58% of required tests. Visa said that their own changes led up to a significant reduction of their roster of recommended test scripts from 35 to 14.
Addressing fraud chargebacks, Chiro Aikat, MasterCard senior business leader for U.S product delivery, says that they are updating their rules in order to minimize the cost to merchants who have not yet transitioned to EMV. The update refers to some adjustments MasterCard has been making to its own network intelligence to more accurately control the chargebacks from going to merchants when the transactions don't meet the expected network criteria for merchant liability.
For instance, a chargeback will be stopped from going back to the merchant when the cashier processes a counterfeit contactless chip card on a contactless terminal.
Chargebacks have definitely been one of the most important concerns for merchants in the EMV rollout. Since an Oct. 1 liability shift, issuers have been allowed to flow such chargebacks to merchants in cases where the merchants aren't yet capable of processing chip cards. In the past, issuers have always absorbed this type of fraud.
MasterCard has recently stated that the majority of U.S credit cards carrying their brand (70% to be accurate) are now chip cards, a significant growth of 58% since Oct.1's fraud-liability change. Also, the number of U.S merchant locations accepting chip cards stands at 1.4 million, a rise of 240% since Oct.1.
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MasterCard Joins Visa in Easing EMV Testing and Chargebacks for Merchants