Standard Bank not stopping EMV

By Candice Jones, ITWeb online telecoms editor

Johannesburg, 06 May 2008

There is no plan to withdraw the roll-out of its "chip and pin" credit cards, despite customer complaints saying otherwise, says Standard Bank.

Customers looking to renew EMV (from the standard founders Europay, MasterCard and Visa) cards with the bank were told by tellers and customer centre employees of the bank, that the EMV cards were not being distributed, because of problems with retailer point-of-sale (POS) devices.

However, Standard Bank director of card and business solutions Carolina Reddy says the distribution of EMV cards is on track, with roughly 30 000 new and replacement cards being handed out monthly. "There is definitely no roll-back happening with these cards."

She acknowledges that many South African retailers are having trouble with the new technology. "It is true that retailers are not quite ready, but we feel the more cards we put into the market, the faster the retailers will become prepared for them."

Customer complaints may stem from a discrepancy in the timelines for card renewals, she says. Standard Bank has set July as the beginning of distribution for those customers looking to renew expired cards. "If your card expires this month, you will be given a magnetic strip card."

Just ask

One client, who was issued an EMV card when opening an account at the bank, tried to renew it and was reissued an old magnetic strip card. An e-mail conversation between the client and a Standard Bank employee states: "The chip cards will be rolled out over the next year to all our private banking clients, which is the reason why it was not received. However, we will order a new Platinum card (chip card) for you and will advise as soon as received."

The reason these cards are being held back until July is purely logistical, states Reddy. "The roll-out of these cards has been carefully planned. Distributing renewals in July is part of the process of ensuring our entire value chain is ready to proceed with those added cards."

Reddy adds that the cards need to be personalised, which means they are manufactured outside of the branch and shipped, unlike the debit cards. "However, if customers really want to have an EMV card when they renew, they need only ask for it. This can be arranged through the branch."

Last year, the bank released a timeline for pushing EMV cards into the market, saying magnetic strip cards will have been completely converted by the end of 2009. Roll-out started in June last year and began with the bank`s employees.

While, at the time, the bank planned to have 400 000 EMV cards in the market by the end of last year, Reddy says the current figure is around 250 000 of current cardholders. Chip and pin cards have been widely touted as a security upgrade for credit cardholders.