EMV Implementation for Acquirers: 10 Questions to Answer When Formulating Your EMV Device Budget and Timeline

When your institution is planning an EMV implementation (that is the implementation of the Europay, MasterCard, Visa standard for integrated chip cards), it’s easy to get overwhelmed by the project scope. As an EMV transaction-acquiring institution, your organization can expect changes in nearly every division resulting from this fundamental shift in payments processing. When tackling such an imposing project, many experts recommend taking one small step at the time. For acquirers, an obvious first step is evaluating their existing devices and planning for chip-compatible ones. Answering the following device-related questions will help you determine the budget and timeline for your institution’s EMV implementation. These questions must be answered based on your institution’s business plan, network size, card associations, and so forth; and each institution’s answers will likely vary. Despite their differences, however, all acquiring institutions should incorporate these considerations into their EMV implementation planning.

1. What is my network “inventory”? Which ATMs can be upgraded, replaced, or removed? Which POS devices must be supported for merchant processing?

   Part of scoping your EMV implementation is taking a detailed inventory of your current network. Begin by determining the makes (Diebold, NCR, Triton, Wincor, etc.) and models of ATMs, and the firmware/software in use on the ATMs. Because upgrades are typically less expensive than wholesale replacement, the next step is identifying any terminals that could be made chip-ready. These are terminals that have equipment (such as chip readers) and software/firmware upgrades available to make them chip compatible. Ensure your project schedule allows time for budget approval, and for ordering and installing new parts or devices.

   For merchant acquirers, similar consideration must be given to the devices that your merchants intend to use and the POS transaction set that you agree to support.

2. Can we reduce costs by streamlining our network?

   Because EMV implementation is so far-reaching, it offers an opportunity for acquirers (especially those that have acquired other institution’s ATM networks via mergers) to re-evaluate the supported types of ATMs (manufacturers and models), and the number and location of ATMs in the network. For every unique ATM type supported, there are direct costs (equipment purchase price, third-party service agreements, vendor maintenance agreements, etc.) as well as associated costs (a test lab with representative terminals of every type, in-house expertise, development specific to that terminal make and model, etc.). When evaluating these costs, institutions may determine that the cost of replacing some terminals is offset by the savings realized by supporting fewer terminal types. For example, acquiring more devices from a single vendor may result in more favorable terms in a service contract.

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