WRITTEN QUESTION No. 1768/96 by Bryan CASSIDY , Giles CHICHESTER to the Commission. Smart card standards
Date: 1996-07-03
Institutions: CASSIDY, CHICHESTER, European Parliament
Subjects: competition policy, credit, electronic money, harmonisation of standards, marketing standard, safety standard, single market, standardisation, technical standard













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91996E1768

WRITTEN QUESTION No. 1768/96 by Bryan CASSIDY , Giles CHICHESTER to the Commission. Smart card standards  


Official Journal C 365 , 04/12/1996 P. 0032 





WRITTEN QUESTION E-1768/96 by Bryan Cassidy (PPE) and Giles Chichester (PPE) to the Commission (3 July 1996)Subject: Smart card standardsIs the Commission aware of the press article 'Delay on the Cards' (Computer Weekly, 25 April 1996)?Does it agree with the comments in that article on the weakness of the current standards system whereby cards may abide by the same standard but, because of the use of different options within a standard, be incompatible at the point of transaction?What steps, if any, are planned to help European users (e.g. retailers, hotels, restaurants, transport and travel organizations and government agencies) to secure the benefits of using common smart card based transaction systems no later than their counterparts in North America?Answer given by Mr Monti on behalf of the Commission (18 September 1996)The Commission is aware of the press article 'Delay on the cards' (Computer Weekly, 25 April 1996). The issues raised in the article are studied under the issue of 'interoperability', which is considered by the Commission to be a crucial element in the construction of a single market for payment systems. In this field, a distinction should be made between 'technical' and 'commercial' interoperability.The first kind of interoperability mainly refers to technical standards. In this area, the current work, which is carried out through the European standardisation organisations, is especially devoted to defining standards which are compatible and, in the same time, achieve a high degree of safety. In particular, encouraged by the Commission, the three main European credit sector associations (ECSAs) ((Members of ECSAs are: the Banking Federation of the European Union, the European Savings Banks Group and the European Association of Co-operative Banks. )) established, in 1993, a European committee for banking standards (ECBS). One of ECBS's assignments is further standardisation in the area of plastic cards and related devices, concerning both traditional credit and debt cards systems and pre-paid instruments (electronic purses). Progress in both areas is significant and will contribute to improving the situation for European commercial users, as well as banks and consumers.The second kind of interoperability refers to commercial agreements between operators, which may be required in order to open systems to each other on a basis of reciprocity and to determine the conditions for their exploitation. The Commission believes that market forces operate freely and fully, and that all these agreements should respect the Community competition rules, in particular Articles 85 and 86 of the EC Treaty, it being understood that interoperability should contribute to the technical and economic progress which the Honourable Member wishes to see achieved.