EMV Takes Hold at ATMs

By By Patrick Totty04.19.2017

A recent ATM Industry Association survey indicates that 58% of U.S. ATMs converted to EMV (Europay, MasterCard, and Visa) by the end of 2016, and 79% will make the switch by the close of 2017.

One-fifth of all units still will use older technology after the final ATM fraud liability shift. Noncompliance could prove particularly expensive for smaller ATM fleet owners.

Some experts see no real choice for financial institutions when it comes to ATM fleet upgrades.

“Credit unions absolutely have to upgrade their ATMs, especially if they eliminate teller positions,” says Lou Grilli, director of payments strategy at CSCU. “They have no option but to maintain their ATM fleets.”

Some credit unions have yet to issue EMV chip cards, but the Payments Security Task Force projects 98% of all U.S. cards will feature EMV chips by the end of 2017.

Cost presents one obstacle to upgrades. The simplest upgrades cost around $3,000 per ATM, Grilli says.

These usually involve a cash dispenser at a third-party, non-credit union location that needs a simple card reader swap-out and certification.

CSCU offers a simple cashdispensing ATM tailored to credit union needs for $20,000 per unit. Meantime, an intelligent, credit union-branded machine capable of accepting cash or checks without need for a deposit envelope varies from $60,000 to $100,000 per unit.

Third-party ATM upgrades must take into account the number of transactions per day necessary to justify an upgrade, Grilli says. Consider a $3,000 upgrade.

(via Credit Union Magazine)

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