NAC, MasterCard working together to provide ATM operators with real world arrangement to address April 19th Maestro liability shift
In September 2011, MasterCard announced that a global chip liability shift for non-U.S. issued Maestro cards would be implemented on April 19, 2013 for the U.S. ATM channel. The point of the liability shift program is to prevent fraud by giving all parties to a transaction a stake in applying the highest level of security end-to-end. At the same time, every participant will maintain their choice about whether, when and how to implement EMV technology.
In advance of this upcoming milestone, The National ATM Council, Inc. (NAC) engaged in a constructive dialogue with MasterCard regarding the liability shift and support for U.S. ATM providers and their suppliers. These discussions have produced what NAC and MasterCard feel is a balanced and workable arrangement that should support the U.S. ATM industry in managing the liability shift program.
To help better identify and mitigate counterfeit fraud, MasterCard will launch Fraud Rule Manager, a new, on behalf service that will identify and mitigate counterfeit fraud at non-EMV enabled ATMs. The service will analyze and review cross-border ATM transactions based on prior transaction history to identify potentially fraudulent transactions and automatically decline the authorization.
As a result of dialogue between NAC and MasterCard, MasterCard committed to work to further minimize cross-border fraud exposure.
- Specifically, MasterCard will use Fraud Rule Manager to block 100 percent of transactions subject to the liability shift on the more than 80 percent of U.S. ATMs that averaged one or fewer cross-border Maestro transactions per month in 2012. Fraud Rule Manager will continue to decide every authorization at the remaining ATMs that have greater historical cross-border Maestro transaction history. If cross-border Maestro fraud at a specific ATM within this group should exceed a designated threshold level, MasterCard will adjust the applicable fraud prevention parameters to block transactions subject to the liability shift at that ATM for a reasonable period of time.
- The Fraud Rule Manager service will be implemented automatically without additional fees for all non-EMV ATMs in the U.S. MasterCard has made it easy to implement this service – there is nothing an ATM acquirer or operator needs to do.
- MasterCard and NAC have agreed to continue to cooperate on the ongoing deployment of EMV at ATMs in the U.S., as well as entertain certain incentives to encourage migration to EMV in an expedited manner. To help NAC members and the larger U.S. ATM community understand the steps being taken, MasterCard and NAC will host a webinar for members of the association today at 3:30 p.m. EDT.
All of this is being done with an eye toward a broader migration – and to more effectively and comprehensively prevent fraud – over the next few years. Together, we will continue to deliver consumers the reliable and secure access to their money they have come to expect over the past 45+ years, in this instance through ATMs.
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