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

Other networks will also be able to license and use the technologies, Visa said, adding that this move enable a debit chip transaction originating from a single chip application to be routed by the merchant to Visa, MasterCard or any other U.S. PIN debit network that elects to participate in these same solutions.

“This represents our continued commitment to advance the adoption of the most advanced payment solutions and security standards in order to deliver maximum value to merchants, consumers and 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 not only preserves merchant routing choice, but ensures seamless interoperability with all other EMV programs across the globe,” McWilton said in the company statement.

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

“This approach offers issuers, acquirers and merchants a streamlined solution for debit chip card routing, helps ensure a cost-effective migration, and enables even broader adoption of secure, convenient chip debit programs in the United States,” said Elizabeth Buse, Global Executive, Solutions, Visa Inc.

“Importantly, this solution allows merchants and acquirers to deploy payment terminals using existing chip technologies that are already widely integrated into existing chip card acceptance solutions,” Buse said.

After this agreement, issuers will be able to load their cards with chips which may be read by any participating PIN debit network in the U.S. Visa said, adding “This approach is consistent with the EMV Migration Forum's recommendations resulting from the aligned merchant and issuing communities' needs for a single common debit application identifier (AID) and single application on each card.

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

Instant Insights /

Visa, MasterCard Agree to Common Debit Chip Solution

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