KBA Chief Executive Officer Habil Olaka says that the rest of the cards are expected to be migrated by May 31, 2014.
“It is important to note that the magnetic stripe cards still work and customers can still use these cards, we appreciate that customers are keen to have the EMV-compliant chip cards and I would like to reassure them that banks are working hard to issue them. Our expectation is that more banks will roll out the news cards during the course of May,” Olaka said.
Olaka noted that banks experienced numerous challenges in reaching the March 31 deadline, mainly due to delays in EMV certification as well as logistical concerns around importing and personalizing the new chip cards.
“I’m pleased to note that KBA members successfully met the September 2013 deadline of certifying their Automated Teller Machines (ATMs); and the December 2013 deadline for certifying Point of Sale terminals. The final stage, and arguably the most complex for banks, has been the EMV certification of Card Management Systems and replacement of magnetic stripe debit and credit cards,” he said.
He said that Kenya is now one of only three countries in Africa – after Nigeria and South Africa – to adopt the EMV standard at an industry level.
“We are proud that Kenya is currently one of the few countries in Africa that have adopted the EMV compliance standard, placing the country at par with other leading countries in enhancing fraud mitigation systems,” Olaka added.
He said that by meeting the global standard for credit and debit card payments, banks will be able to materially deal with the risk, leading to an increase in consumer confidence in using credit and debit cards.
Olaka says the liability shift where the costs associated with fraud involving non-EMV compliant cards will be borne by the issuing bank from May 31, 2014.
“To reinforce our commitment to enhance card security and customer protection, we have maintained timelines and introduced a liability shift requirement whereby the costs associated with fraud involving non-EMV compliant cards will be borne by the issuing bank from 31st May 2014, he said.
He was speaking in Nairobi during the launch of the annual ATM and card safety awareness campaign that will be observed in May.
The campaign seeks to educate the public on the importance of safeguarding their bank accounts details include their Personal Identification Numbers at ATMs and other payment card access points.