14 DAY TRIAL // A new cross-industry group that focuses on enhancing the security of payment systems in the United States was announced last week by Visa and MasterCard. The new group’s main goal is the introduction of Europay, MasterCard, and Visa (EMV) chip cards, also known as PIN-and-chip cards, in the US.
The recent data breaches suffered by Target and several other major US companies have once again highlighted the need to introduce EMV chip technology. Unlike the classic magnetic stripe cards, the information on these types of payment cards cannot be copied with skimmers, so they can’t be cloned and misused by fraudsters.
After cybercriminals stole the payment card details of 40 million of its customers, Target revealed that it was determined to deploy chip-enabled card technology in stores by early 2015. The company made a similar attempt around 10 years ago, but it failed.
Now, the retailer is prepared to make a $100 million (€73 million) investment to accelerate the process. Hopefully, now that two major payment card companies and financial institutions have become involved, PIN-and-chip cards will be adopted at a faster rate in the US.
“One of the critical roles we play is to protect consumers and businesses against criminals and fraudsters,” commented Chris McWilton, president of North American Markets at MasterCard.
“Only through industry collaboration and cooperation will we address the real and immediate issue of security and maintain consumer confidence and trust. EMV will be the next step in these efforts, alongside enhanced security solutions for online and mobile channels,” McWilton added.
The new group includes banks, retailers, credit unions, acquirers, point-of-sale device manufacturers, and industry trade groups.
In addition to the adoption of EMV chip technology, the group also aims to promote tokenization, point-to-point encryption, and other additional security solutions. Furthermore, the initiative will also focus on developing a roadmap for the steps that will be taken to secure all segments of the payment industry.
“The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security,” said Ryan McInerney, president of Visa.
McInerney added, “As we have long said, no one industry or technology can solve the issue of payment system fraud on its own. These conversations will serve as a useful forum to share ideas, break down barriers and spur the adoption of next generation security solutions for the benefit of all.”