Visa Inc. and First Data's Star Network will share Visa's technology for routing debit transactions initiated through EMV chip-based cards.
Last year, Visa offered its common application identifier (AID) for coding the embedded EMV chip for debit routing as a solution for the payments industry to comply with Durbin amendment's mandate that merchants must have at least two networks as routing options.
The license agreement will help Visa and Atlanta-based processor First Data advance the development of compliant debit EMV technology for issuers, acquirers and merchants, Visa says in a Feb. 26 press release.
"Visa's priority is to facilitate the U.S. migration to EMV technology as efficiently and quickly as possible," Elizabeth Buse, global executive of solutions for Visa, states in the release. "Under our approach, issuers and merchants will have a streamlined path to achieve the security benefits of EMV while minimizing disruption to legacy systems."
First Data's Star Network will use PIN and no-CVM functionality, which permits low-value transactions without cardholder verification. Cardholders will be able to perform PIN, PINless and signature payments. The AID will facilitate U.S. debit transactions from any debit network that licenses the Visa common AID and is enabled on a Visa card.
"This agreement is a significant step to accelerate EMV adoption by addressing Regulation II compliance for debit EMV transactions," Barry McCarthy, president of First Data Financial Services, states in the release.
The common debit solution supports issuer choice and flexibility, allowing network changes without reissuing cards, and merchant and acquiring routing choices without reprogramming host systems, Visa says.