Chip-and-PIN: What Does the Oct. 1 Credit Card Deadline Mean For Me?

30 Sep 2015 | Author: | No comments yet »

Get ready to dip, not swipe, your credit cards.

Instead of swiping credit cards and debit cards, more retailers are asking consumers to dip them into new card readers that are supposed to be more secure. VISA HAS WORKED with financial institutions, governments and merchants for more than 50 years to extend the benefits of electronic payments to hundreds of millions of people around the world.PURCHASE, N.Y., Sep 30, 2015 (BUSINESS WIRE) — With just hours before the October 1 liability shift, new data from MasterCard reveals that 40 percent of all U.S.

The technology uses cards with chips embedded in them, and is supposed to cut down dramatically on incidents of thieves stealing card information and making fake copies. Businesses have been installing the new readers slowly, but more might have them up and running by Thursday, the deadline set by major credit card issuers for merchants to have the updated card terminals.

We employ multiple layers of security that work together to help us manage fraud, from anti-counterfeit features to network-based fraud detection, to data security standards, to help keep sensitive information. According to a Payments Security Task Force forecast announced earlier today, the number of chip cards in the U.S. will to grow to 60 percent by the end of this year, expanding to 98 percent by the end of 2017. “The data proves that the shift to chip in the U.S. is a reality. Those that don’t have the readers by then could be on the hook for any losses caused by credit card fraud. (As opposed to banks being liable, as is the case now.) The transition should be pretty straightforward for consumers, but it can still take a little getting used to. We’re incredibly encouraged by the tremendous progress across the industry, knowing that consumers are ultimately the ones who will win,” said Chris McWilton, president, North America Markets, MasterCard.

We also monitor and manage fraud to ensure we effectively address issues and minimise impact to account holders, merchants and financial institutions. Visa invests heavily in advanced fraud fighting technologies and continues to develop and deploy new and innovative programmes to mitigate fraud and protect card holders. Instead of sending retailers and card companies the same information each time they’re used, the way the magnetic stripe on cards works now, the chip sends out a unique code for each transaction. (The official name for the technology is EMV, which is short for Europay, MasterCard and Visa.) The idea is that any thief who is able to intercept the code won’t be able to use it again to make a fraudulent purchase with a fake version of the card later on. (Essentially making it more difficult for someone to go on a shopping spree at a mall in Texas while you are physically in New York.) Anyone who would try to use a fake magnetic stripe version of the card at a chip terminal would be prompted to insert the card into the chip slot, said Stephanie Ericksen, vice president of risk products at Visa. In fact, 75 percent of cardholders agree the increased security of the chip cards greatly reduces the ability for thieves to copy or use their cards for unauthorized purchases,” said McWilton. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.

MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Because VisaNet processes more electronic card payments globally than other networks, Visa has a unique capability to identify fraud on individual accounts and coordinated attacks on multiple accounts across the system, enabling issuers to stop potential fraud before it occurs.

Follow us on Twitter @MasterCardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau. That’s what happened in Europe when retailers installed the technology there years ago, with online fraud doubling in some countries, said Rurik Bradbury, chief marketing officer for Trustev, a company that helps retailers catch online fraud.

Our efforts are centred on supporting the migration to smart cards which contain a chip that not only allows for storing of greater amount of information, but also authentics dynamic data. Retailers are moving to catch fraud online by scanning for details, such as a person’s IP address, e-mail address and other data points, but their information is often limited, Bradbury said.

Changing to chip cards represents a strong measure towards the business of counterfeit cards because in terms of security it drastically reduces the possibility of fraud. Consumers who want to get a new card can call their credit card companies and request one, said Matt Schulz, a senior industry analyst for That percentage will grow over the next several years, but adoption may be slow, especially among smaller stores, whose owners might feel like they can’t afford the new technology. Based on how the transition played out in Europe, Ericksen estimates it may be two to three years before roughly 70 percent of in-store transactions are done using EMV technology.

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