Discover (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 frequent travelers. 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 organization’s needs.” About Discover 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. About PULSE 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.