The shift to EMV-enabled chip cards resulted in a whole new set of rules for acquirers to follow when routing ATM transactions. But it also left many wondering how they could preserve routing options that can provide the profitability of their ATM acquiring program.
EMV transactions at ATMs have increased rapidly since the first liability shift took effect in October 2016. Chip-card transactions accounted for 34% of all PULSE® ATM transactions in July 2017, compared to 3% just one year earlier. All signs indicate those numbers will only continue to rise. Amidst these changes, there are easy steps acquirers can take to make their ATMs more profitable.
Cover the bases – certify for all networks
One of the smartest things you can do when it comes to your ATM business is to be certified for all networks. Opening up the ability to route to all the networks may allow you to choose the most profitable network for every transaction. This may result in greater profitability for your ATM program.
You must have proper coding in place to enable routing to various networks and not just card brands. Many networks have implemented new simplified certification processes that make the process more streamlined. You can call your network to discuss options. PULSE can be reached by calling 1-877-247-8573, or clicking here.
Find your route – default to the common AID
Once you’ve certified for all networks, configure your EMV transaction routing to fully leverage the advantages of the Common AID.
The Global AID is unique to the card brand, such as Discover, Visa or Mastercard. By using only the Global AID, you could be limiting routing choice to that card brand, and you eliminate the ability to choose other networks available on a card.
While Discover does not impose routing restrictions if a Global AID (application identifier) is used, Visa and Mastercard require the transaction to be routed to their own respective networks if a common AID is not used.
Default to the Common AID to allow routing flexibility. A common AID allows the acquirer to route a transaction to any network you use that's available on the card. Choosing this option – and maintaining control over where transactions are routed – will likely give you the most flexibility to potentially increase interchange and reduce costs, which in turn should maximize your profitability.
Be a rule follower – use the rules to your benefit
Know that different networks make different rules. Transaction routing rules have evolved since the shift to EMV-enabled chip cards, and acquirers should bear in mind that each card brand keeps its own set of rules.
Acquirers should be interrogating BIN files and routing debit transactions to the appropriate networks. Failing to route based on the issuer-defined specifications of the BIN file means risking network fines that would likely be passed on to issuers from their respective processor.
It's worth noting that not all networks have routing rules that support issuer-determined routing. Those that do are reminding acquirers to follow them. However, if there are two different networks with issuer-determined priority that reside on the same card, you can choose the network that offers you the best net interchange option.
To learn more about increasing profitability when it comes to your ATM business, click here to request a call from one of our experts, or call us at 1-877-247-8573.