With a critical Oct. 1 liability deadline looming, the nation's 10 largest credit card issuers are in the process of switching to safer chip-based payment cards and expect to have the majority of them updated by year's end, according to a new report by CardHub.
The transition comes in the wake of an uptick in massive data breaches — at U.S. companies ranging from retailers Staples, Target and Home Depot to financial services firm JPMorgan Chase and health insurer Anthem Inc. — and MasterCard and Visa's deadline that shifts liability to those card issuers and merchants that don't make the change from the more vulnerable magnetic-strip-only swipe payment cards.
"Banks and merchants must enable these chip-card payments or else they will incur significant added liabilities for fraudulent transactions," said Jill Gonzalez, a spokeswoman for CardHub, a Washington, D.C.-based credit card comparison and financial literacy website. "The (credit card) networks are really washing their hands of having responsibility for any more fraudulent activity or breaches that occur (using the magnetic strip swipe cards)."
The chip cards — known as EMV cards because Europay, MasterCard, and Visa developed the security framework — have embedded microchips with encrypted card security information that's difficult to counterfeit. To use the cards, which are already standard in more than 80 other countries, consumers insert them into a point-of-sale terminal and sign their name or enter their personal identification number (PIN). Each time a chip-enabled card is used, a unique, one-time transaction code is created that can't be used again.
All of the 10 credit card-issuing banks — including American Express, Bank of America, Capital One, Chase, Citi, Discover and U.S. Bank — are issuing chip cards that require signatures. Barclays, USAA and WellsFargo also are issuing cards with PIN capabilities.
"(It's) even safer if a (chip) card requires a PIN in order for a transaction to be proceed," Gonzalez said. "If you don't have a PIN … a cashier can much more easily reject a transaction. A lot of times, these signatures are now done on electronic keyboards that a cashier doesn't look at or check with a card, and there's a lot more discrepancies … than hard-copy signatures (because of the difficulty in writing using the stylus pens)."
Those banks among the 10 that issue debit cards also will issue chip-enabled versions.
All 10 of the banks' cards also will continue to have the magnetic strips to ensure they work at merchants, particularly smaller ones, that don't upgrade or immediately upgrade to the chip-enabled point-of-sale systems.
"That's where your card would still be just as vulnerable," Gonzalez said.
Anda sedang membaca artikel tentang
Card issuers all-in on chips
Dengan url
http://sedangapasaja.blogspot.com/2015/03/card-issuers-all-in-on-chips.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Card issuers all-in on chips
namun jangan lupa untuk meletakkan link
sebagai sumbernya
0 komentar:
Posting Komentar