Press Releases

Interac Association sets chip conversion deadlines

October 24, 2005, Toronto, ON – Interac Association today announced approval by its Board of Directors of final deadlines for the conversion of Interac Shared Services - Shared Cash Dispensing and Interac Direct Payment - to chip technology. This latest step demonstrates Interac Association's leadership in ensuring a smooth and timely transition to chip technology and providing long-term security and innovative service offerings.

This decision builds on the Association's commitment, made earlier this year, to have the necessary infrastructure in place for its members to begin offering the Interac Shared services using chip cards in time for the first chip transaction to take place in 2007. With these deadlines, m agnetic stripe transactions will not be permitted in the Shared Cash Dispensing service for debit card cash withdrawals from Automated Banking Machines after December 31, 2012 and magnetic stripe transactions will not be permitted in the Interac Direct Payment service at Point-of-Sale devices after December 31, 2015.

"These end–dates solidify our commitment to migrate the delivery of Interac Shared services to chip technology," said Judith Wolfson, President and CEO of Interac Association. "This is an important step for successful migration, and we continue to work closely with our members and business partners to ensure a timely and effective transition."

These deadlines acknowledge that full migration to chip will take several years, recognizing the large number of organizations involved and the number of debit cards, automated banking machines and Point-of-Sale terminals that will need to be converted. The specific timetable for the introduction of chip by individual Association members will vary from member to member.

Chip cards will continue to carry the magnetic stripe which currently facilitates transactions. This will not only facilitate the transition to chip, but also allow cardholders to use their debit cards in other markets not planning to introduce chip in the near future, such as the United States.

About Interac Association

Formed in 1984, Interac Association is a not-for-profit organization composed of 95 members which include: banks, trust companies, credit unions, caisses populaires, technology and payment related companies. Interac Association is responsible for the development of the national network for two shared electronic financial services: Interac Direct Payment, Canada's national debit card service and Interac Shared Cash Dispensing service for cash withdrawals at Automated Banking Machines.