Chip and Pin Update

Chip and Pin Update – Retailers are moving away from mag-striped cards

Two years ago, Visa set multi-year deadlines for retailers and the companies that set up their card processing terminals to transition to an EMV (Europay, MasterCard, Visa) system.  EMV is now the European standard for Credit Cards, and it is better know in the US as "Chip and Pin".

These new cards have a microchip embedded and it’s use encrypts both card data and transaction data uniquely each time that the card is used. This new technology makes it harder to capture usable data to clone cards.

Many major card issuers have already rolled out chip cards to replace mag-stripe cards, but mostly the switch has been geared only towards business travelers. Currently, most US consumers would have a hard time finding a business that takes these types of cards.

Recent challenges to this have emerged… just as the card industry figured out a way to process EMV debit cards to comply with provisions set up by  the Durbin Amendment, a district court judge struck down a portion of the amendment that limited the swipe fees retailers pay for each debit card transaction. This is one reason retailers haven’t switched over their mag-stripe terminals to take EMV, which in and of itself is a costly change.

Most retailers don’t want to make the required hardware changes until it is clear that the software will be able to support it, and that the necessary hardware will be available that supports it.  This means that larger
retailers such as Wal-Mart won’t make the switch until it becomes clear that EMV has taken hold on U.S. soil.

Also, merchants won’t want to be among the last to migrate, as criminals will be targeting a narrowing list of merchants that haven’t moved to the more secure cards.

If you are interested in learning more about safeguarding your Point of Sale systems using this sort of technology, pleas contact the CCS Retail Systems Sales Department.

John

 

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