Implementing EMV in the U.S.: How the U.S. Common Debit AIDs Facilitate Debit Transaction Routing and Ensure Durbin Compliance

As the U.S. payments infrastructure migrates to EMV chip technology, regulations require that there must be a choice between at least two unaffiliated networks when routing point-of-sale transactions. The U.S. Payments Forum video presentation, “Implementing EMV in the U.S.: How the U.S. Common Debit AIDs Facilitate Debit Transaction Routing and Ensure Durbin Compliance,” explains the unique U.S. implementation of EMV debit.

See notice below.

This presentation provides a simplified overview of the U.S. Common Debit AID and its impact on EMV adoption in the U.S., including:

  • A brief review of the differences between magnetic stripe and EMV chip cards (e.g., the data stored on the card, the transaction process)
  • A description of relevant terms used in discussing the U.S. Common Debit AID (e.g., AID)
  • Challenges that the Durbin Amendment presented to the U.S. payments industry for implementing EMV debit
  • A high-level discussion of the technical framework described in the U.S. Payments Forum’s “U.S. Debit EMV Technical Proposal,” a solution that follows the EMV specification and accommodates flexibility to meet debit routing regulatory requirements
  • A walk-through of a transaction that involves a U.S. Common Debit AID or the Shared Debit Network Alliance AID
  • Additional resources and references for further education on EMV debit in the U.S.

The video presentation, “Implementing EMV in the U.S.: How the U.S. Common Debit AIDs Facilitate Debit Transaction Routing and Ensure Durbin Compliance,” was developed by the U.S. Payments Forum’s Communication and Education Working Committee and led by Deborah Spidle, director of EMV solutions at Paragon Application Systems, and Lori Breitke, E&S Consulting LLC. The presentation was updated in August 2017.

Please note: The information and materials available on this web page (“Information”) is provided solely for convenience and does not constitute legal or technical advice. All representations or warranties, express or implied, are expressly disclaimed, including without limitation, implied warranties of merchantability or fitness for a particular purpose and all warranties regarding accuracy, completeness, adequacy, results, title and non-infringement. All Information is limited to the scenarios, stakeholders and other matters specified, and should be considered in light of applicable laws, regulations, industry rules and requirements, facts, circumstances and other relevant factors. Use of or reliance on the Information is at the user’s sole risk, and users are strongly encouraged to consult with their respective payment networks, acquirers, processors, vendors and appropriately qualified technical and legal experts prior to all implementation decisions.

Please note that, on November 2, 2016, staff of the Board of Governors of the Federal Reserve System (the “Board”) released a FAQ relating to Section 235.7(b) of Federal Reserve Regulation II (promulgated by the Board pursuant to the Durbin Amendment to the Dodd-Frank Act), noting that although the FAQ is not an official Board interpretation, “[a] payment card network inhibits a merchant’s ability to route electronic debit card transactions if it, by network rules, standards, specifications, contractual agreements, or otherwise, requires the merchant to allow the cardholder to make the choice of EMV chip application on a debit card, where one application routes only to a single network.” None of the Information should be interpreted or construed to require or promote the establishment of any solution, practice, configuration, rule, requirement or specification inconsistent with applicable legal requirements, including Federal Reserve Regulation II, any of which may change over time. The U.S. Payments Forum assumes no responsibility to support, maintain or update the Information, regardless of any such change.

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