Discover Introduces Global Chip Card Fraud Liability Shift Policy
Across Discover, Diners Club International®
and PULSE® Networks
PULSE to Support EMV Chip-Based Debit Transactions to Align with
Industry Deployment and Certification Efforts
RIVERWOODS, Ill.--(BUSINESS WIRE)--Nov. 12, 2012--
(NYSE: DFS) today announced the next milestone in its global EMV
deployment: a comprehensive strategy and roadmap that includes Discover
Network, Diners Club International, PULSE and Discover Card.
Discover’s Fraud Liability Shift Policy
In alignment with U.S. EMV migration timelines, Discover
is introducing Fraud Liability Shift for Discover Network (in the U.S.,
Canada and Mexico) and PULSE (in the U.S.), effective October 1, 2015 at
point-of-sale terminals and Oct. 1, 2017 at automated fuel dispensers.
This Fraud Liability Shift policy will be a risk-based payments
hierarchy that benefits the entity that leverages the highest level of
available payments security. As Fraud Liability Shift is already in
place for Diners Club International (effective December 31, 2012 for
mandated Participants), Discover will have one standard liability shift
policy in place across all networks by October 1, 2015.
Starting October 2013, Discover will also grant annual PCI audit waivers
for merchants that process 75% of Discover Network transactions via
terminals supporting both contact and contactless payments.
Discover cardmembers also will benefit from the enhanced security EMV
provides, as Discover looks to gradually start replacing its current
cards with chip cards in the coming years, with initial outreach to
PULSE EMV Deployment
PULSE, a Discover Financial Services company and one of the nation’s
leading debit/ATM networks, will capitalize on Discover’s already
significant EMV-deployment experience by using the D-Payment Application
Specification (D-PAS) to enable EMV transactions at the point of sale.
In addition to introducing Fraud Liability Shift, PULSE will require
U.S. direct-connect merchants and point of sale acquirer processors to
support EMV data effective Oct. 16, 2013.
Although PULSE’s implementation of D-PAS supports all cardholder
verification methods, its U.S. implementation of EMV is expected to
feature broad support for online PIN-authenticated transactions as the
most secure cardholder verification method.
PULSE also is collaborating with other debit networks and industry work
groups to facilitate interoperability among card brands and to enable
merchants to route debit transactions consistent with the requirements
of the Federal Reserve’s Regulation II.
“Our timeline to support chip-based credit and debit transactions, in
addition to our Fraud Liability Shift policy, are critical milestones to
helping make EMV a reality in the U.S.,” said Diane Offereins, President
of Payment Services at Discover. “As with the Discover mandate announced
earlier this year, our approach to EMV enables participants to select
verification methods and transaction types that meet their
Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company
operates the Discover
card, America's cash rewards pioneer, and offers personal and
student loans, online savings accounts, certificates of deposit and
money market accounts through its Discover
Bank subsidiary. Its payment businesses consist of Discover
Network, with millions of merchant and cash access locations; PULSE,
one of the nation's leading ATM/debit networks; and Diners Club
International, a global payments network with acceptance in more than
185 countries and territories. For more information, visit www.discoverfinancial.com.
PULSE, a Discover Financial Services (NYSE: DFS) company, is a leading
debit/ATM network, serving more than 6,300 financial institutions across
the United States. This includes 4,300 issuers with which PULSE has
direct relationships and more than 2,000 additional issuers through
agreements PULSE has with other debit networks. PULSE links cardholders
with ATMs and POS terminals at retail locations nationwide. Through its
global ATM network, PULSE provides worldwide cash access for Diners Club
and Discover cardholders through more than 850,000 ATM locations. The
company also is a source of electronic payments research and is
committed to providing its participants with education on emerging
products, services and trends in the payments industry. For more
information, visit www.pulsenetwork.com
or follow PULSE on Twitter @PULSENetwork.
Source: Discover Financial Services
Laura Gingiss, 224-405-0185