Press Releases

Interac Association announces decision to move to "chip" for Interac Shared services

February 16, 2005, Toronto, ON – Interac Association announced approval by its Board of Directors to migrate to chip technology for the delivery of Interac Shared services: Interac Direct Payment, Canada's national debit card service and Interac Shared Cash Dispensing service for cash withdrawals at Automated Banking Machines. The Association plans to have the necessary infrastructure in place for its members to begin offering the Shared Services using chip cards by the end of 2006. Plans call for the first chip transaction to take place in early 2007.

"Chip represents the next generation in payment card technology," said Judith Wolfson, President and CEO of Interac Association. "It puts the power of a computer onto the card through an embedded microchip that offers enhanced security and the opportunity to offer several services on one individual card, providing a new level of convenience to consumers. The decision to migrate to chip for Interac Shared services reflects our commitment to remain at the forefront of the payments marketplace in Canada."

Interac Association has been implementing a chip readiness strategy, focusing on the business and technical requirements necessary for chip migration, for the past three years. In addition, it has been an active participant in the Canadian Chip Migration Project, a multi-stakeholder project focused on developing industry-wide specifications for chip in Canada.

The specific timetable for the introduction of chip by individual Association members will vary from member to member. The Association's mandate is to ensure that the infrastructure is in place to begin processing transactions using chip technology by an agreed date, and to set out the long term migration strategy that includes requirements for new Point-of-Sale (POS) terminals and Automated Banking Machines (ABMs) entering the marketplace to be chip compatible within a fixed timetable.

The complete migration to chip is expected to take several years, recognizing the number of cards in circulation, as well as the number of ABMs and POS terminals deployed in the marketplace that will need to be converted. As a result, 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.