SIOUX FALLS, SD and NEW YORK, NY (August 7, 2013) -- The ATM Industry Association (ATMIA) today expressed concern that the July 31 Federal Court decision overturning Fed rules on debit fee caps and routing choice will inject unwelcome uncertainty into the debit world. “This decision,” says David Tente, Executive Director USA for ATMIA, “could completely stall progress toward development of the debit solutions necessary for the vast US EMV migration. 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. Most financial institutions, therefore, are holding back on debit card issuance until a solution is agreed upon that not only meets regulatory requirements and the EMV specifications, but also provides network-to-network portability, without the need for mass reissuing of cards at a later stage. The simple reality of that interrelationship means that a solution for ATM owners, operators, and users will not be possible until all associated debit card issues are first resolved for retail merchants.
ATMA’s position continues to be one of support for minimal “regulation” – whether that control emanates from government or the global networks – and ATM and card markets that are driven by consumer need and convenience, competition, and the cost of doing business. Such an approach would ultimately lead to greater choice and lower costs for consumers.
“Instead, our industry today finds itself dealing with a Court decision that has just thrown away the rules upon which we have based all of our work for the past year,” comments Tente. “Work that was necessary because the EMV spec being dictated by the global networks does not fit well with the U.S. payment system as a whole. And meanwhile, the industry still faces the same unrealistic liability shifts.”
The need to rewrite rules, which has now arisen as a result of this latest Court decision, will almost certainly delay deployment of EMV debit solutions, pushing operators even further past the deadlines and simultaneously increasing implementation costs and potential fraud losses. “ATMIA is hopeful that global networks will finally come to realize that the current EMV migration roadmaps need some serious readjustment to fit broader industry needs,” Tente concludes.
ABOUT ATMIA
The ATM Industry Association, established in 1997, is a non-profit global trade association with approximately 3,700 members in 60 countries. As an independent, non-profit trade association, our mission is: to promote ATM convenience, growth and usage worldwide; to protect the ATM industry's assets, interests, good name and public trust; and to provide education, best practices, political voice and networking opportunities for member organizations.