Kenya: Bankers association maintains 31 March deadline for migration to chip-based cards
The Kenya Bankers Association (KBA) says it will not extend the 31 March deadline for the migration of payment cards from magnetic strip to the Europay MasterCard Visa (EMV) platform.The Kenya Bankers Association (KBA) says it will not extend the 31 March deadline for the migration of payment cards from magnetic strip to the Europay MasterCard Visa (EMV) platform.
KBA's CEO Habil Olaka told Capital FM Business that after the deadline, banks will be liable for any fraud that occurs due to the use of cards that are not EMV compliant.
"The consumer should not be penalised for any operational issues that may come up within the card issuing system, and
we will determine the liability shift so that banks become liable for anybody who loses money out of using a card that is not compliant," he said.
However, Mr Olaka added that the association is carrying out a survey that will determine whether they will extend the liability shift date which is set for Tuesday 1st April. "Depending on banks' explanation on why they would like more time as well as how ready the market is for the migration, we might shift the liability shift date," he explained.
This announcement comes as banks have been requesting additional time to migrate their customers to the more secure chip-based cards.
They have started to switch to
the card payment security standard EMV (Europay, MasterCard, Visa - completed by a PIN) at the beginning of 2013 to improve the safety of transactions.
Until now, the system relied on magnetic strip technology that criminals could easily exploit, and has been blamed for rampant fraud in Kenya's financial sector.