Apr 21, 2010

With MasterCard, Visa, Interac approval, Calypso ready for chip processing

CALGARY-- Alberta-based Calypso Canada says it is now ready to process EMV and Interac chip and Visa and MasterCard EMV card transactions from chip-enabled Canadian ATMs. The move follows the granting of certification for chip card processing by MasterCard, Visa and Interac to Calpyso, a Transaction Network Services company.

Canadian proprietary debit scheme Interac, Visa Canada and MasterCard Canada have come together to implement chip-and-PIN card payments in Canada.

Interac requires ISOs to have 50 percent of their ATM portfolio chip-compliant by December 31, 2010 and the remaining cash machines compliant by December 2012.

ATMs also need to be ready to accept EMV chip cards by October 2010 when the liability shift for EMV chip-enabled MasterCard and Visa cards takes place.

The term ‘liability shift’ refers to the fact that, under Visa and MasterCard rules, any merchant whose payments device is not Visa/MasterCard EMV-compliant by October 2010 will be liable for losses arising from fraudulent use of EMV chip-enabled cards on their equipment.

In April 2009, Calypso received Interac Association certification for its EMV Chip platform. In March 2010 Calypso added MasterCard EMV and Visa EMV certification. To achieve the certification, Calypso worked with Moneris, the card processor that is owned jointly by RBC Royal Bank of Canada and BMO Bank of Montreal. The Visa certification process has just been completed.

ATM processing and management company Calypso Canada was set up in 1998 and acquired by Reston, Virginia-based data communications company Transaction Network Services Inc (NYSE: TNS) in 2009. It now provides ATMs network management and processing for over 100,000 ATMs globally.

“We gained our experience of processing EMV transactions in the UK, so scaling up chip processing to meet Canadian demand is not a problem for us,” says Doug Epp, Senior Director at TNS Canada, Calypso’s parent company.

“We are certifying ATM Chip and EMV upgrade kits as they are made available by the manufacturers. What needs to happen now is for ATMs to be upgraded so that they can read Interac Chip and EMV cards. We are waiting for the upgrade kits to be supplied by manufacturers, so that we can certify them.”

Calypso gained its MasterCard EMV certification using a Triton CE SW ATM. In June 2009, Calypso certified the Triton RL2000, which is in use in thousands of locations across Canada, for its EMV chip platform. Calypso also used the same Triton ATM to gain its MasterCard and Visa EMV certifications.

Calypso has two chip certification facilities available. One is its own centre in Calgary facility and the other a facility belonging to parent company TNS in Reston, Virginia.

“It is too soon to say if ISOs will meet the end-of-year Interac deadline for the upgrade of 50 percent of their ATMs,” says Epp. “The challenge is that ATMs need to accept not only Interac chip cards but also EMV chip cards.

“We are ready to do the certification of upgrade kits and the processing of chip cards, but the challenge is that the kits have to be available from the manufacturers and the ISOs need to make the necessary investment and plan the logistics to upgrade their ATMs in time to meet the year end deadline.”

Working with a partner like Calypso Canada will help ISOs meet this pending deadline and to improve their overall ATM management, Epp says




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