In order to push the banking industry towards full adoption of EMV technology at a much faster pace, the Monetary Board (MB) recently approved the supplemental guidelines on BSP EMV migration requirement. The guidelines prescribe a hard deadline for compliance as well as clearly defined consequences for non-compliant institutions.
BSFIs are given until 30 June 2018 to fully comply with the EMV requirement. Failure to do so will subject BSFIs to monetary sanctions provided under relevant provisions in the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI). In the interim, non or partially-compliant BSFIs are mandated to book provisions for probable fraud losses starting 30 September 2017 until full compliance is achieved.
To raise awareness as well as manage customers’ expectations on the replacement of their payment cards, BSFIs should intensify their public awareness programs leveraging on all available communication channels. The information should clearly indicate the date when EMV cards are available and ready for pick-up by their clients as well as the related procedures for replacing magstripe cards and distributing EMV-compliant cards. BSFIs are further expected to develop strategies to entice or force clients to replace their old cards with EMV cards (i.e. deactivation of existing cards by certain date, offering of rewards/freebies, and/or liability shift for skimming incidents).
To further strengthen consumer protection and complaints handling and resolution as prescribed under BSP Circular No. 936 dated 28 December 2016, the actual restitution of cardholder/s with valid claims should take place within the 10-day resolution timeline for complaints and/or requests for chargeback as a result of counterfeit fraud.