EMV cards are a front-runner in heightening security and convenience in the near future. EMV stands for Europay, MasterCard and VISA, a global standard for inter-operation of integrated circuit cards (IC cards or "chip cards") and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions.) (wikipedia.org)
According to EMVCo, approximately 1 billion EMV cards have been issued globally and 15.4 million POS terminals accept EMV cards. (http://www.smartcardalliance.org/pages/publications-card-payments-roadmap-in-the-us)
Primary purposes of including a chip in a bank card are:
-to store cardholder data securely,
- protect data stored on the chip against unauthorized modification,
- reduce the number of fraudulent transactions resulting from counterfeit, lost, and stolen cards. (smartcardalliance.org)
Although this technology is great, there are still significant issues that need to be addressed. In the example of retailers in the U.S., “most aren’t in a position to transition from magnetic stripe to EMV chip + PIN cards in the immediate future. Javelin Strategy & Research estimates the transition cost would exceed $8 billion. What’s more, other countries have shown that it takes upward of five to ten years to fully transition to EMV”. (http://www.firstdata.com/downloads/thought-leadership/one-time-card-star-cert-wp.pdf)
“Chip cards are more expensive than magnetic stripe cards, POS terminals require
additional features to read the card, and legacy back-office systems must be upgraded. Without a perceived fraud problem and given the cost of implementation, U.S. financial institutions and merchants did not make the investment required to convert the legacy bank card issuance and acceptance infrastructure to the EMV standard.” (smartcardalliance.org)
Although, with the increasing amount of card-related fraud losses and the cost of enhancing security features, the US has been reconsidering into adopting this technology. Visa says that accelerating a switch to E.M.V. technology in the United States will not only enhance security when credit and debit cards are used, but also will help prepare for increased use of mobile systems that let shoppers pay by waving their cellphones at a payment terminal. (Systems that let shoppers pay with their phones use E.M.V. chips, too). (http://bucks.blogs.nytimes.com/2011/08/09/visa-wants-u-s-cards-to-catch-up-with-the-world/)
In the recent spike in ATM skimming, these cards are worth exploring. In my research, I found it interesting that developing countries are using these cards. See article (http://www.gemalto.com/financial/cards/emv_poland.html)
I am actually looking forward to exhibiting at the International Security Convention in March 2012 to talk to vendors who are applying this technology.
According to EMVCo, approximately 1 billion EMV cards have been issued globally and 15.4 million POS terminals accept EMV cards. (http://www.smartcardalliance.org/pages/publications-card-payments-roadmap-in-the-us)
Primary purposes of including a chip in a bank card are:
-to store cardholder data securely,
- protect data stored on the chip against unauthorized modification,
- reduce the number of fraudulent transactions resulting from counterfeit, lost, and stolen cards. (smartcardalliance.org)
Although this technology is great, there are still significant issues that need to be addressed. In the example of retailers in the U.S., “most aren’t in a position to transition from magnetic stripe to EMV chip + PIN cards in the immediate future. Javelin Strategy & Research estimates the transition cost would exceed $8 billion. What’s more, other countries have shown that it takes upward of five to ten years to fully transition to EMV”. (http://www.firstdata.com/downloads/thought-leadership/one-time-card-star-cert-wp.pdf)
“Chip cards are more expensive than magnetic stripe cards, POS terminals require
additional features to read the card, and legacy back-office systems must be upgraded. Without a perceived fraud problem and given the cost of implementation, U.S. financial institutions and merchants did not make the investment required to convert the legacy bank card issuance and acceptance infrastructure to the EMV standard.” (smartcardalliance.org)
Although, with the increasing amount of card-related fraud losses and the cost of enhancing security features, the US has been reconsidering into adopting this technology. Visa says that accelerating a switch to E.M.V. technology in the United States will not only enhance security when credit and debit cards are used, but also will help prepare for increased use of mobile systems that let shoppers pay by waving their cellphones at a payment terminal. (Systems that let shoppers pay with their phones use E.M.V. chips, too). (http://bucks.blogs.nytimes.com/2011/08/09/visa-wants-u-s-cards-to-catch-up-with-the-world/)
In the recent spike in ATM skimming, these cards are worth exploring. In my research, I found it interesting that developing countries are using these cards. See article (http://www.gemalto.com/financial/cards/emv_poland.html)
I am actually looking forward to exhibiting at the International Security Convention in March 2012 to talk to vendors who are applying this technology.
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