Credit Card EMV Issuance and POS Reterminalization in the United States – Preparing for 2015: The Year of the Liability Shift

DUBLIN–(BUSINESS WIRE)–Research and Markets ( has announced the addition of the “Preparing for 2015: The Year of the Liability Shift” report to their offering.

“Preparing for 2015: The Year of the Liability Shift”

Credit card issuers are gearing up for a fourth quarter that will likely mark the kickoff of widespread EMV issuance. Card manufacturers are adding capacity to meet demand, and all sources indicate that the EMV train is finally leaving the station.

The data breaches that occurred during the 2013 holiday season set the context for 2014 product strategy in many areas of the payments industry. However, no decisions have been affected more than those relating to EMV. Industry participants have spent 2014 defining, and in some cases implementing, their migration strategies. A completely operational EMV environment is likely several years away, but progress is being made.

The report projects that 58% of credit cards and 26% of point-of-sale (POS) terminals will be EMV-compliant by the end of 2015.

The research note, Preparing for 2015: The Year of the Liability Shift, explains the author’s outlook for credit card EMV issuance and POS reterminalization in the United States. It also discusses several EMV-related issues such as chip and PIN, contactless and private-label issuance, as well as the potential impact of card network liability shifts.

Issuers and merchants both appear to be taking EMV migration in stride, which is to say that they are incorporating it into routine card and terminal refresh cycles, comments Michael Misasi, Senior Analyst and the primary author of the research note. Looming regulatory issues and rumors that liability shifts would be extended have prevented merchants from getting the head start necessary to match financial institutions’ EMV reissuance. Both groups will be ramping up their EMV efforts around the same time.

Factors considered as influencing EMV credit card issuance include:

Issuers’ willingness to stray from typical credit card refresh cycles
Potential EMV card supply constraints
Previously announced issuer migration plans
Timeline for BIN certification and EMV pilots before general issuance
Card network liability shifts
Incremental costs associated with PIN and/or contactless support
Competitive forces in the industry
Increased customer service issues
Future regulatory action
Past and future data breaches

Factors considered as influencing EMV acceptance include:

Merchants’ willingness to will stray from typical POS terminal refresh cycles
Number of inactive EMV terminals already in the market
EMV certification and testing timelines
Previously announced merchant migration plans
Possible expansion of the addressable market for consumer-facing terminals after EMV migration
Card network liability shifts
Number of terminals located at merchants that Mercator Advisory Group has identified as being particularly likely for prompt conversions
Need for co-brand credit card reissuance
Uncertainty around debit EMV issuance and acceptance procedures
Competitive forces in the industry
Future regulatory action
Disruption in checkout process

Highlights of the research note include:

Projected EMV credit card issuance and POS reterminalization
Projected EMV compliant credit card transaction volume
Analysis of recent and forthcoming disruption related to the industry’s EMV migration.
Discussion of trends related to credit issuance such as chip and PIN, contactless, private label
Analysis of how EMV production capacity could impact the resistance process.

Companies Mentioned:

American Express
JPMorgan Chase

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