Credit Card Chips on the Fast Track - Legal News


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Legal » Credit Card Chips on the Fast Track

Credit Card Chips on the Fast Track

Credit Card Chips on the Fast Track
The content is accurate at the time of publication and is subject to change.

MasterCard and Visa have formed a new group that will work to speed up the use of several new technologies, including chips and digital tokens. This move comes after a series of recent security breaches put consumers’ credit and debit card information at risk.

The newly-formed group will bring together companies from all sectors of the industry, including banks, merchant processors, credit unions, trade associations, and companies that create payment terminals in an effort to prevent future credit card fraud.

It’s all about technology

One of the primary areas they will be focusing on is the adoption of EMV (Europay, MasterCard, Visa) technology in the U.S. This technology is widely used in Europe and provides an additional layer of security to protect consumer data at the register. Credit cards are embedded with EMV chips rather than magnetic strips, which store the users data. Each transaction is given a unique code, which makes it almost impossible for criminals to use the cardholders information to commit counterfeit fraud, according to payment processors.

With EMV technology, cardholders dip rather than swipe their cards when using them at the register. MasterCard and Visa have set October 15 as the deadline for adopting EMV technology by retailers.

Along with EMV technology they will be taking a close look at tokenization and point-to-point encryption. These technologies will be used to secure consumers data when they are making payments or purchases with their smartphone or computers. With tokens the individual’s account number does not appear on the transaction. Instead it is replaced with a digital token or payment code, which adds another layer of security to the process.

The group will also be mapping out other initiatives to provide consumers, as well as retailers, banks and financial institutions, with additional avenues of security in the future.

These efforts come on the heels of several high profile security breaches in retail outlets. Target’s

payment processing system was compromised last year putting 40 million cardholders data at risk. While in January Neiman Marcus Group confirmed that their payment processing system was also breached.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Visa Ups the Ante for Prepaid Cards
Visa Ups the Ante for Prepaid Cards

Posted: June 13, 2014

It’s easy to unknowingly rack up fees when you’re using prepaid cards, but Visa aims to change all that by rolling out new standards for cards carrying its logo. Continue reading

MasterCard Steps Up Fraud and ID Theft Prevention
MasterCard Steps Up Fraud and ID Theft Prevention

Posted: June 17, 2014

In the face of several recent major data breaches and increasing consumer concern about payment security, MasterCard is putting in place new measures to protect cardholders. Continue reading

American Express and Costco to Break Ties
American Express and Costco to Break Ties

Posted: February 17, 2015

American Express and Costco are ending their relationship, with the split slated to take effect on March 31, 2016. Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Introducing the New Citi Rewards+ Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap
For Excellent, Good Credit
Enjoy 70,000 bonus miles after spending $5,000 on purchases in the first 90 days
For Good/Excellent Credit
See Rates & Fees
Perfect credit not required for approval; we may approve you when others won’t
For Fair/Bad Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!