How EMV will Impact the ATM

While the roll out of EMV will bring numerous benefits, the challenges in the path to successful deployment can be equally plentiful if migration plans are not in place. One of the key stumbling blocks to successful migration is underestimating the complexity of EMV and the need for forward planning.

In the video Barclays discovered that EMV-compliance results in a complex transaction process and to roll out EMV effectively, the process should be viewed as a machine comprised of many cogs.

Every cog must successfully integrate with every other cog in order for an EMV transaction to be successful. A common mistake in EMV deployment is considering only the major steps, or cogs, in the road to compliance since magnetic-strip card based transaction processes and ATM networks are relatively simple in nature and this was enough to ensure functionality. This is no longer enough to ensure the smooth running of an ATM network as EMV, adds many more ‘cogs’ to existing infrastructures. For example,  the EMV chip can hold many different applications, so the host must respond to many more EMV messages.

Advanced planning is critical to managing this process effectively.  However, because of the number of components that need to be considered these plans often have many critical paths. To address these using manual processes requires a significant amount of time or resources, both of which are usually constrained by national timelines and organisational cost. Deploying technologies to manage migration is one way to reduce the critical planning paths, and roll out EMV in time and on budget Technologies such as Download configurations (for protocols such as NDC or 912), Host Message simulators, Test and Defect management tools (such as HP Quality Center), and specialist EMV tooling are essential to success and, when combined present a powerful end-to-end testing solution which will help ensure the smooth roll out of EMV at the ATM.

Furthermore, automating the process will help ATM deployers to manage the long term changes involved in EMV migration. EMV allows for the roll out of multiple applications to an EMV card and many banks and card schemes such as Visa and Maestro will look to take advantage of this potential in order to generate additional ROI and can include anything from a national electronic purse as has been rolled out in Malaysia to branded loyalty programmes.  Such schemes will further increase the complexity of the ATM and host environment. Consequently, it is essential that banks and ATM operators prepare for these changes in order to ensure ATMs function successfully on an ongoing basis.

For further information review the EMV Wiki,  ATM Industry Blog and EMVCo Website.

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