Blog posts tagged with 'emv'

EMV: Where we are on change.

Many card issuers are still not changing their scheduled plans in regards to their EMV timelines, despite the holiday breaches and Target’s recent fast-track plans. Since the breaches, Target representatives and executives have vowed to  adopt EMV at least six months before the EMV Deadline.  The reason that issuers aren’t accelerating their efforts seems to be due to a lack of return on investment.  Render Dahiya, CEO of Chicago-based card provider Arroweye Solutions says, “Even though the Target breach has scared people there is a significant value out there when you look at the costs”.

Target alone does have the resources to make the switch to EMV early next year, and still plans on delivering on its promise for an earlier transition. However, “One remains skeptical that EMV will ever take place,” says Dahiya. Media coverage of the breaches played a massive role in giving off the impression that all issuers might move more quickly with the EMV transition. “But they are sticking with their wait-and-see approach, especially on the debit side… One said that credit cards are a clearer path and that would be the first to move. Learn some lessons then move to debit later in 2015”.

The breaches did create a “timing issue” - do the issuers fast track their process of issuing cards only to have to replace them again by the deadline? Fidelity National Information Services V.P. of product, Bob Legters  says “To reissue now and then reissue again for EMV in a year is a big question issuers are asking”.  Originally, issuers working with FIS had planned to wait until late 2015 to issue EMV cards as magnetic cards expired. However, Legters acknowledges that the breaches did motivate issuers to consider other strategies.

“One advantage Target gives to the issuers is they get an opportunity to advertise the advantage of a chip card… Without some level of a breach in the marketplace and the heightened awareness, it would be more difficult to put out a product for security as a value-add”.

Source - ISO&Agent

MasterCard and VisaRivals Team Up

MasterCard and Visa have teamed up to increase efforts in the U.S. transition ot EMV chip cards as well as other security measures.

The alliance will receive representation from numerous banks, credit unions, acquirers,
retailers and terminal manufactureres - according to the the card brands.

The purpose of a collaborative group is to instill confidence in front of congress. Avoiding  a competitve atmosphere that may cause uncertainty in a time of heavy breaches and  fraud claims; a cohesive approach is critical when instilling confidence with the masses.

Though the group is new, there may still be issues that have yet to be covered. Some  examples:

Should issuers require consumers to use a PIN to make EMV payments, though VISA has openly expressed using signature authentication.

Pat Carroll, executive chairman of security vendor, ValidSoft, supports the effort in speeding up the EMV process -
"The industry must be fully cognizant of how payments and fraud are evolving... there is a grave danger that will find itself having spend billions of dollars on new cards and POS devices capable of processing chip-and-pin, only to find that both  consumers and crooks have moved on".

The new group also intends on becoming a catalyst for other types of security technology, such as: tokenization and end-to-end encryption. Both of these methods can replace payment card details with data that criminals can exploit. 

VISA President Ryan, McInerney states in a press release that "The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issues of payment secrutity... As we have long said, no one industry or technology can solve the issue of payment system fraud on it's own."

Group members plan on sharing ideas, break down barriers and move towards a "next-generation security solution for the benefit of all."

-Source, ISO&AGENT

EMV - Rattling the Cage

Recent cyber criminal activity has created quite the fuss. One of their largest targets? Target.

Over the holidays Target customers had their data and information hacked at an alarming rate. Since then Targets profits have fallen by more then 40%. In an attempt to restore it's image and integrety among it's  customers, Target has vowed to replace all of their terminals to EMV, or smart card readers by the end of the year. In addition to proving their dedication to data security, Target will also be issuing "Red Cards" with an embedded chips.

So what?

Well this has gotten a few people talking. The EMV wake is coming, and much like a teenager putting off mowing the lawn, companies are waiting until the last minute. However, the reactive approach can cost not only Target, but private ATM Owners as well. We all know MasterCard's liability shift goes into effect October 1, 2016, giving us two years to be proactive and ensuring our equipment is updated and EMV ready. But if Target has shown us anything it's that companies were expecting to take the reactive approach.

Targert's motivation was drawn from their customers. Consumers are pushing politicians to get EMV over and done with as soon as possible so as to avoid any more breaches. To large companies such as Target and Macy's however, the convenience was the time that so many customers are hoping gets cut down. Over all consumer awareness will be what drives mandated educational programs on the corporate level so that businesses will be active listeners and proactive EMV advocates.

EMV: What it's costing America

How much is EMV Costing the U.S.?

Guess! Okay I'll tell you, but before I do lets go over some of the details:

Billions of credit cards have to be re-issued, 10 million POS cardreaders have to be replaced and we're still  a little over two years away from MasterCard's liability shift deadline.  Experts say it will cost the United States upwards of $35 billion! It's obvious that the train is moving and there is no stopping it but recently the push to get this transition over and done with has become more aggressive since the infamous Target breach over the holidays. 

France first switched over to smartcard technology back in 1992, now in 2013 americans are urging their government, retailers and banks to make the switch as quickly as possible. Following recent information breaches, Target alone has pledged to have all of their terminals switched over to smartcard readers by the end of the year, while also issuing out "red cards" for their customers with an embedded chip.

So why the late transition? Up until just a few years ago it wasn't seen as a necessity. We rolled with the punches and did what we could to get by, despite the fact that that an estimated $8.6 billion is lost each year to some form of fraud.  Countries like France and Columbia have seen massive improvements since adopting EMV (up to 98% decreases). However it took the U.S. much longer to realize how necessary the transition is.  To put it plainley, we waited for the worst to happen, and it's costing us money. 

We'll never know if we could have saved money had the transition been earlier in the millennium. Either way, we'll be saving billions of people from fraud, so the cost is justified.

-Sources MSN