Retailers Are Insisting That The US Adopt Chip and PIN Technology.
Many US retailers are insisting that PIN authentication for Europay MasterCard Visa (EMV) SmartCard use should be mandatory. However, the Visa and MasterCard organizations want retailers to migrate to EMV SmartCard-ready payment systems by October 2015, but at this point they aren’t requiring that a Personal Identification Number (PIN) system be used to authenticate cardholders.
EMV cards store cardholder data and other sensitive information in a tiny embedded microprocessor, are considered substantially safer than magnetic stripe cards currently used in the US.
Merchants maintain that the chip cards offer few new benefits without requiring the use of a PIN.
The National Retailers Federation (NRF) position is similar to that of the Retail Industry Leaders Association (RILA). RILA also argues that MasterCard and Visa’s EMV mandate leaves gaps in payment card security because they won’t require a PIN.
However, many industry insiders are contending that the Visa and MasterCard decisions are based on an incomplete understanding of EMV technology, citing that SmartCards offer significant security benefits over magnetic stripe technology, regardless of whether a PIN is used.
Currently, SmartCards have all but eliminated fraud involving the use of counterfeit or cloned debit and credit cards. With current technology chip cards are difficult to counterfeit, but there are ways around them, and criminals will eventually find a way to counterfeit them. However, right now, even if you don’t have the PIN, and you can find a way around the chip on the card, it can still be used to commit fraud. So it’s not just a matter of stolen physical cards."
If you would like more information on secure payment systems, please contact the CCS Retail Systems Sales Department.
– John