Visa is embracing the future of credit card payments, known as EMV or “Chip and PIN” technology, and making things official by setting a date (April 2013) by which it “would require its acquirer processors and sub-processors to support merchant acceptance of chip transactions including the cryptographic message that makes each transaction unique,” according to pcmag.com.
In their determination to move on from the old, familiar magnetic stripe credit card of the past, Visa also reiterated their support for near-field communication (NFC) technology: one of the four primary models used to make a consumer’s mobile device into a virtual wallet that can also be used to make payments. NFC allows simple exchanges of data and transactions to occur at a touch.
“By encouraging investments in EMV contact and contactless chip technology, we will speed up the adoption of mobile payments as well as improve international interoperability and security,” global head of product for Visa Inc. Jim McCarthy said in a press release, according to selfserviceworld.com. “As NFC mobile payments and other chip-based emerging technologies are poised to take off in the coming years, we are taking steps today to create a commercial framework that will support growth opportunities and create value for all.”
Visa also stated in the press release that implementing chip technology will make electronic payments more secure for both consumers and merchants alike by “introducing dynamic authentication values for each transaction,” reports pcmag.com. These “dynamic authentication values” will make it impossible for thieves to use counterfeit cards, at the point of sale.
“Dynamic authentication is the key to securing payments into the future,” said Ellen Richey, Visa’s chief enterprise risk officer, in the statement, reveals selfserviceworld.com. “Adding dynamic elements to transactions makes account data less attractive to steal and takes more merchant systems out of harm’s way, shrinking the battlefield against criminals.”
However, the possibility of thieves using a fraudulent card may not be the main security issue with EMV cards.
In any case, because of Visa’s push and the April 2013 deadline, big changes are on the way for credit cards, all over the board.
“The way we buy things and pay for things is about to go through a fundamental transformation,” said Jeff Kagan, a technology analyst to pcmag.com. “First it was cash to credit cards. Now, it’s credit cards to the mobile wallet on your cell phone.”