MANILA, Philippines - Banks will now be able to start adopting a standard to use in replacing magnetic-stripe cards following the release of the guidelines for Europay, MasterCard, and Visa (EMV)-chip carrying cards by the Bangko Sentral ng Pilipinas.
The central bank said in a statement it has approved an EMV implementation guidelines in preparation for banks’ required shift to the technology by 2017.
In 2013, the BSP has mandated banks to replace all existing magnetic-stripe cards with an EMV one to better guard against fraud. EMV-chip enabled cards boast of unique codes for every transaction, thus, prohibiting thieves from using stolen information for a separate business deal.
“The guidelines entail the adoption of a Philippine domestic EMV specification for proprietary debit cards. However, it does not preclude the issuers of co-branded cards from adopting established international schemes for said cards,” the BSP said.
These guidelines also contain the BSP’s expectations of how banks will manage the risks while they migrate their clients to EMV cards from magnetic-stripe ones.
At the same time, banks will be given the flexibility for the needed technical and operational requirements, policies and procedures for the transactions, testing, dispute and fraud risk management, and other EMV-related processes, the BSP said.
“Since December 2013, the BSP has been closely working with key industry players to come up with a viable strategy to comply with the EMV migration requirement,” the central bank said.
The BSP said that together with the banking industry, they plan to look at various international best practices in picking a strategy for the migration, and to ensure channels and networks are working during this period.
Moreover, the central bank said it plans to “ensure non-disruption of current ATM (automated teller machine) and Point of Sale (POS) functionalities and services being provided to consumers and [to] establish a national branch and prepare our industry for national payment initiatives and roadmap.”
The guidelines will take effect 15 calendar days after the publication of the Circular in a newspaper of general circulation.
Aside from the shift to EMV cards, banks have also been required last year to equip their ATM units with end-to-end Tripe Data Encryption Standard starting January.