Nedbank says it plans to maintain a pragmatic approach to chip-based smart cards rather than be at the "bleeding edge".
"Many lessons are still being learned globally as the markets and technology mature and slowly start building critical mass," says Joy Rees, head of card innovation at the bank.
"Nedbank plans to benefit from those learnings rather than paying for them."
Yesterday ITWeb reported that Standard Bank is to start rolling out the new chip cards in May, with Absa saying it will issue its cards towards the middle of the year.
Like Nedbank, First National Bank says it is taking a pragmatic approach to ensure customers gain tangible benefits.
"Nedbank is analysing the association mandates and market developments to ensure its timing for chip-card roll-out is optimal in relation to the aspects of market maturity, terminal base upgrades, fraud pattern changes and cost of implementation, among others," Rees says.
She says the roll-out of chip cards in SA is dependant on full interoperability between the big four acquiring banks. "Testing between the four banks is currently under way and will probably be completed in the first half of 2005."
EMV (Europay, MasterCard and Visa) is a global standard for chip-based bank cards aimed at improving security. The deadline for EMV compliance passed on 1 January, which means banks that have not upgraded to the standard are now liable for losses attributed to fraudulent transactions that might have been prevented had they been compliant.
Rees says Nedbank has certified two credit card chip products with a view to a limited internal pilot. "Nedbank will participate in any banking industry pilots which are likely later in 2005 in order to prove full bank interoperability between acquirers."
She adds that Nedbank`s issuing platform has been EMV-enabled and the focus now is completion of acquiring infrastructure and servicing the channel roll-out.
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