With only 12 days to the deadline, only 40 per cent of about 1.5 million ATM card users have been issued new chip-based cards which bankers were to acquire to avoid the risk of rampant fraud.
The use of magnetic cards in Kenya have increasingly had fraud cases occur since they can easily get cloned leaving the industry in a compromising situation not knowing who to pay for losses arising from fraudulent transactions made possible by non-compliance. “Liability is ordinarily on the bank that has not complied” said Kenya Bankers Association Chief Executive, Habil Olaka.
The entire banking system will continue to suffer losses should banks fail to migrate to the Euro pay Mastercard Visa (EMV) platform on time which are less prone to fraudulent transactions and was supposed to be a three phase switchover since April last year. All cards were to become EMV compliant by September 30, 2013 according to plan and with a completion date of December 31, 2013 by Point of Sale (POS).
Card migration made the last phase of the switchover that is to be completed by end of this month with banks expected to issue their customers with new chip technology cards and migrate them to the new system, completing the switchover.
KBA is however in the process of finding out how prepared the banks are.