Implementing EMV at the ATM: PIN Change at the ATM

Publication Date: March 2015

Many U.S. issuers and acquirers currently do not offer PIN change at the ATM, and industry stakeholders often ask if an EMV migration project is a good time to implement this service to offer added convenience to cardholders. The EMV Migration Forum ATM Working Committee white paper, Implementing EMV at the ATM: PIN Change at the ATM, provides guidance for ATM owners and issuers who are contemplating implementing PIN change at the ATM as part of, or subsequent to, their U.S. EMV migration.

It is important for ATM owners and issuers to understand how this service functions in the magnetic stripe world today, and what should be considered when deciding if, where, when and how to offer PIN change at the ATM when implementing EMV chip technology. This white paper answers these key questions and provides guidance through the decision and implementation of PIN change at the ATM.

While PIN change at the ATM is not mandated by any of the payment networks, it provides cardholders with the convenience of self-service, and it is important that all stakeholders consider how important it is for the consumer to have a consistent and positive experience. This service also provides a convenient way for an issuer to deliver PIN change and PIN unblock issuer scripts to a chip card.

The white paper also covers other major considerations, including:

  • PIN change in the magnetic stripe and EMV environments: where PIN change can be offered; PIN change transaction flow; cardholder verification methods (CVMs); offline PIN management; comparison of flow between magnetic stripe and chip transactions; managing offline PIN within the chip; unblocking the offline PIN
  • Current global payment network offerings supporting PIN change: American Express; Discover; MasterCard; Visa
  • Key decisions and additional considerations for ATM owners and issuers: PIN change at the ATM: yes or no; card and terminal technology; tracking bad PIN tries; special scenarios

NOTES AND INFORMATION DISCLOSURE

This document has been prepared by the EMV Migration Forum ATM Working Committee. The recommendations, suggestions and other guidance and information provided in this document represent the general consensus of the members of the Working Committee, following extensive research and discussion, and are provided solely as a general guide for the convenience of interested ATM industry constituents.

 

In the ATM context, and generally, implementation of EMV ultimately depends on the specific circumstances, environment and business needs of those involved. Prior to implementing EMV, it is therefore assumed (and the EMV Migration Forum strongly encourages and recommends) that implementers will independently and thoughtfully (i) assess their respective environments, requirements, challenges, preferences, business needs and related matters, and how the foregoing may impact their specific EMV implementation(s), (ii) consider the recommendations provided in this document, and (iii) consult with appropriate acquirers, issuers, processors, vendors and payment network partners, and obtain the support and guidance of experienced and qualified professionals where appropriate.

About the EMV Migration Forum

The EMV Migration Forum is a cross-industry body focused on supporting the EMV chip implementation steps required for global and regional payment networks, issuers, processors, merchants, and consumers to help ensure a successful introduction of more secure chip technology in the United States. The focus of the Forum is to address topics that require some level of industry cooperation and/or coordination to migrate successfully to chip technology in the United States. For more information on the EMV Migration Forum, please visit http://www.emv-connection.com/us-payments-forum/

Contact

Michael Smith
Montner Tech PR
203-226-9290
msmith@montner.com


Please note: The information and materials available on this web page (“Information”) is provided solely for convenience and does not constitute legal or technical advice. All representations or warranties, express or implied, are expressly disclaimed, including without limitation, implied warranties of merchantability or fitness for a particular purpose and all warranties regarding accuracy, completeness, adequacy, results, title and non-infringement. All Information is limited to the scenarios, stakeholders and other matters specified, and should be considered in light of applicable laws, regulations, industry rules and requirements, facts, circumstances and other relevant factors. Use of or reliance on the Information is at the user’s sole risk, and users are strongly encouraged to consult with their respective payment networks, acquirers, processors, vendors and appropriately qualified technical and legal experts prior to all implementation decisions.

Please note that, on November 2, 2016, staff of the Board of Governors of the Federal Reserve System (the “Board”) released a FAQ relating to Section 235.7(b) of Federal Reserve Regulation II (promulgated by the Board pursuant to the Durbin Amendment to the Dodd-Frank Act), noting that although the FAQ is not an official Board interpretation, “[a] payment card network inhibits a merchant’s ability to route electronic debit card transactions if it, by network rules, standards, specifications, contractual agreements, or otherwise, requires the merchant to allow the cardholder to make the choice of EMV chip application on a debit card, where one application routes only to a single network.” None of the Information should be interpreted or construed to require or promote the establishment of any solution, practice, configuration, rule, requirement or specification inconsistent with applicable legal requirements, including Federal Reserve Regulation II, any of which may change over time. The U.S. Payments Forum assumes no responsibility to support, maintain or update the Information, regardless of any such change.