Table of Contents
Overview
Visa and Mastercard have recently updated their mandates concerning contactless magnetic stripe data (MSD) transactions, impacting integrators and merchants utilizing the NMI Gateway. This article outlines the critical dates and requirements set forth by these mandates, and the steps NMI users need to take to comply.
Key Mandate Dates and Requirements
Visa Contactless MSD Transaction Rules
- April 13, 2019: Terminals deployed from this date must not support MSD transactions if EMV Contactless is enabled.
- October 19, 2019: All contactless acceptance devices must exclusively support EMV Contactless, eliminating support for MSD transactions.
- March 29, 2024: Visa will decline all MSD Contactless transactions network-wide in Canada.
Mastercard Contactless MSD Transaction Rules
- Before October 18, 2019: Newly deployed contactless-enabled terminals could support MSD transactions.
- From October 18, 2019: New POS terminals must only support EMV mode for contactless transactions, excluding Magstripe mode.
Impact on NMI Customers
Financial Implications
Visa will impose a $0.10 fee for each MSD contactless transaction starting April 1, 2023, potentially affecting merchant processing fees.
Compliance Steps
Users of NMI’s Gateway must transition from MSD contactless to EMV-based contactless processing to avoid transaction declines and additional fees. The mandates necessitate equipment upgrades and potentially software changes:
- Payment SDK for Windows & Linux: Visit our website for EMV-certified device options. Contact NMI Support for further assistance.
- Direct Connect (formerly ChipDNA Direct/CardEaseXML): Discontinue magstripe contactless transactions by October 18. If unable to obtain EMV certification in time, contact your processor for a potential waiver. Without a waiver, disable magstripe contactless functionality until certification is obtained. Non-compliance may shift liability to the merchant.
- Boarding Process: Merchant account and terminal group setups must exclude the capability for contactless magstripe transactions. Specific fields in the boarding process must be adjusted accordingly. Contact NMI Support for queries related to these boarding changes.
Support and Further Information
If your payment device does not support EMV Contactless, we strongly urge you to contact your Account Manager or Sales Representative to discuss alternative solutions and develop a migration plan tailored to your needs.
For any inquiries or additional support regarding these mandate changes and compliance steps, please reach out to support@nmi.com. Our team is here to assist with the transition and ensure a smooth compliance process for all our users.