In the interest of facilitating simpler U.S. debit transactions,Visa announced Tuesday that it and MasterCard have licensed eachother's debit chip technologies.

Other networks will also be able to license and use thetechnologies, Visa said, adding that this move enable a debit chiptransaction originating from a single chip application to be routedby the merchant to Visa,MasterCardor any other U.S. PIN debit network that electsto participate in these same solutions.

“This represents our continued commitment to advance theadoption of the most advanced payment solutions and securitystandards in order to deliver maximum value to merchants, consumersand issuers,” said Chris McWilton, president, North America,MasterCard.

“By providing every U.S. debit network with an efficient,market-ready answer, we are delivering a proven solution that notonly preserves merchant routing choice, but ensures seamlessinteroperability with all other EMV programs across the globe,”McWilton said in the company statement.

This arrangement should help U.S. debit networks adapt to usingchip-embedded cards more quickly, Visa explained.

“This approach offers issuers, acquirers and merchants astreamlined solution for debit chip card routing, helps ensure acost-effective migration, and enables even broader adoption ofsecure, convenient chip debit programs in the United States,” saidElizabeth Buse, Global Executive, Solutions, Visa Inc.

“Importantly, this solution allows merchants and acquirers todeploy payment terminals using existing chip technologies that arealready widely integrated into existing chip card acceptancesolutions,” Buse said.

After this agreement, issuers will be able to load their cardswith chips which may be read by any participating PIN debit networkin the U.S. Visa said, adding “This approach is consistentwith the EMV Migration Forum's recommendations resulting from thealigned merchant and issuing communities' needs for a single commondebit application identifier (AID) and single application on eachcard.

“The solutions offered by Visa and MasterCard will significantlyreduce the complexities of the U.S. EMV implementation.”