30 Hoosier Banker November 2015 Bank in Minnesota has seen a surge in demand for chip card terminals from its merchant customers, says Noah Wilcox, president and chief executive officer. “My suspicion was we were going to have a flood of requests if we didn’t” encourage merchants to convert to chip reader terminals, he explains. He adds that 61 percent of his merchants have already converted, with another 28 percent undecided. Swartz knows firsthand how long the process can be for issuers, as well, having begun the DeMotte State Bank chip card conversion process in February, with no official launch date as of mid-October. (During testing, the bank identified an issue at the ATM Those who went to bed on Sept. 30 expecting a new payments era to greet them the next morning may have been living in a fairy tale. While some big-box retailers, burned from breaches of days past, were ready and able to process chip card transactions Day One of the liability shift, many others, both large and small, were still operating in a mag-stripe-only world. Lorrie Swartz, bank card coordinator at DeMotte State Bank, can attest to walking into her local JoAnn Fabric store, chip card in hand, and discovering that the chip card reader functionality was not activated. That’s not to say that change isn’t coming. It didn’t happen overnight in Canada or in Europe, where chip cards are modus operandi. That may be why the adoption timeline of merchants and community banks varies from early adopters, to fast followers, to those still waiting to be convinced of the value. Since late July, Grand Rapids State PSP SHOWCASE Getting Ready for EMV and is also working on a separate initiative to support instant-issue chip cards.) “Oct. 1 is not a deadline in any meaningful sense of the word. Instead the liability shift serves as a catalyst for change,” explained TCM Bank’s president and CEO Paul Weston in written testimony presented to the Small Business Banking Committee last month. “Community banks will weigh the implementation and issuance costs with potential risk and demand from consumers,” said Weston, who predicted that the migration to full EMV chip card usage will likely take several years to accomplish. In outlining the steps to adoption, Weston told the panel that community banks must consider: 1. Card production and deployment ‒ artwork and card redesign, acquiring new inventory of card stock, card personalization and postage. 2. Implementation ‒ programming, software upgrades, processor costs and new authorization techniques. ATMs and branch card issuance systems also need to be upgraded. 3. Training ‒ for cardholders, as they adapt to a new way of presenting a card for payment, and bank staff and merchants, so they can assist consumers at the point of sale. TCM Bank, which offers custombranded consumer and small business credit cards for community banks that prefer not to issue their own cards, is EMV-enabled and is in the process of converting its agent bank cards to chip cards, explains Agnes Nasso, marketing officer for TCM Bank. The card company will issue chip cards to all newly originated accounts, at natural reissuance, for account number change events such as lost or stolen cards and account compromises, and at the request of cardholders, Nasso explains. Your supplier for over 150,000 marketing and promotional items. FORMING A PARTNERSHIP WITH INDIANA BUSINESSES. 1419 Fabricon Blvd. • Jeffersonville, IN 47130 (800) 736-1326 • Full-Service Printing • Document Imaging • On-Demand Printing • On-Line Ordering Systems • Micr-Encoded Documents • Forms Management Call us for your FREE forms cost analysis! Adam McCoskey Vice President - Sales Southern Indiana 812-989-9236 arm@voluforms.com Tom Staley Vice President - Sales Central / Southern Indiana 812-258-2722 tjs@voluforms.com Susan Voyles Garr Vice President - Sales Southern Indiana 812-987-6008 svg@voluforms.com Jim Hutchinson Vice President - Sales Southern Indiana 812-258-2723 jfh@voluforms.com Scan QR code to visit www.voluforms.com
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