Momentum is building for debit EMV as the Shazam Network and Visa Inc. announced an agreement today to enable issuers to use Visa's common debit application identifier (AID) for Visa- and Shazam-branded cards and transactions.
Visa is offering the use of its common domestic AID and Visa Smart Debit Credit EMV chip application, which support U.S. debit regulations requiring the ability to route debit transactions over multiple, unaffiliated networks.
By sharing this AID among all U.S. debit network participants, Visa and Shazam said EMV chip adoption will meet the requirements of issuers, merchants, networks and U.S. regulators, while maintaining global international acceptance.
"This agreement reflects nearly two years of industry engagement," says Terry Dooley, Shazam's chief information officer in a prepared statement. "Shazam is proud to have acted as a driving voice in the original SRPc chip-and-PIN working group and the Debit Network Alliance."
Visa said its common AID will enable point-of-sale debit transactions and domestic ATM transactions on Visa and Shazam-branded debit cards.
"It remains important for all U.S. debit card issuers to evaluate the business case and the industry as they begin to consider a migration to EMV," says Dooley. "Particularly for smaller issuers, including community banks and credit unions, a cost-benefit analysis that takes into account the institution's current and predicted fraud risk, as well as the potential return on an EMV investment, is a critical first step."
On April 15 CO-OP Financial Services also entered into an agreement with Visa to make the Visa EMV common debit solution available to its credit union clients.
Following last month's federal appeals court decision to uphold the Federal Reserve's debit interchange guidelines, the industry finally has more clarification regarding numerous debit routing issues.
The ruling, by a federal appeals court in the District of Columbia, overturned a decision last year by U.S. District Judge Richard Leon. That ruling, which would have forced regulators to tighten restrictions on swipe fees, was put on hold during the appeals process.