MINNEAPOLIS, MN and ALEXANDRIA, VA – The
Merchant Advisory Group (MAG) has expressed its “deep concern” over recent news
articles that create the impression that “all stakeholders are content with
using three debit applications for routing U.S. debit transactions and accept
the October 2015 date as a given.”
Both MAG and NACS oppose using three debit
applications for U.S. debit and advocate for a single domestic debit
application with all debit networks participating.
“A single application is much simpler to
implement for merchants and would preserve merchants’ legal rights under Reg
II,” said Mark Horwedel, CEO for MAG. “Issuers would preserve their ability to
move seamlessly between networks without the need to reissue devices. Consumers
would benefit from enhanced reliability by avoiding POS complexities associated
with multiple debit applications. Regional networks would preserve their
ability to compete.”
Horwedel also took issue with the October
2015 date as “completely unreasonable given the inability of the networks to
resolve the debit issue.”
NACS supports MAG’s position.
“NACS is in full support The MAG’ position on
this unworkable solution, currently on the table to accommodate debit routing
under the EMV standard,” said Lyle Beckwith, NACS senior vice president of
government relations. “This technical issue is tantamount to circumvention of
the Durbin Amendment’s stipulation that merchants have the choice of networks
through which to route debit card transactions, as it is unwieldy to implement
and causes undue complexity in, what should be, a simple process.”
Beckwith added that continued failure by the
card brands to adopt a single standard “proves that EMV is more about
preserving card business models than improving the security of the U.S. payment
system. Further, this issue combined with the looming (and seemingly unchangeable)
liability shift dates announced by the card brands force merchants to adopt a
deeply flawed routing solution or face increased charge-backs which will raise
prices to consumers.”