Blog posts tagged with 'target'

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

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.