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MasterCard, Visa form group to enhance payment security

Visa and MasterCard credit card logos ar

(Reuters) - Credit card companies MasterCard Inc and Visa Incsaid they had formed a new cross-industry group to enhance payment system security across networks.

The move follows several data breaches at U.S. retailers, including one at Target Corp late last year involving the theft of about 40 million credit and debit card records.

The new group, which will include representatives from the retailing, financial and equipment manufacturing industries, will initially focus on the adoption of 'EMV' chip technology in the United States, MasterCard and Visa said in a statement on Friday.

EMV chip technology, already used in Europe and Asia, stores information on computer chips rather than on traditional magnetic strips. EMV stands for Europay, MasterCard and Visa, the companies that launched the technology.

MasterCard and Visa had already set a deadline of October 2015 for U.S. retailers to adopt the new payment technology.

But banks and retailers have been dragging their feet over the required upgrade, at odds over who should bear the cost, which experts say could be as much as $10 billion.

EMV cards are harder to counterfeit and better protect sensitive data through encryption.

They can also require users to enter a personal identification number, or PIN, to make purchases, adding an extra layer of security.

"The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security," Visa President Ryan McInerney said in the statement.

(Reporting by Aman Shah in Bangalore; Editing by Kirti Pandey)

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hgeorgech March 08 2014 at 6:04 AM

It's about time! As indicated, card with chips have been used in Europe for a long time .. and many establishments there cannot handle cards from the USA that do NOT have embedded chips ... "sorry, we cannot process this card" -- applies also to AMEX cards ... high time the USA gets into the 21st century! Canada has these cards; why not the USA?

If you plan to go to Europe this year/next --- and do not have a chip embedded Visa/MC/AMEX card, be prepared to pay in ca$h ... this even applies to some smaller hotels/B & B's there ... no chip; no credit!

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eoliver431 March 07 2014 at 4:24 PM

I would love to the my credit card company put to use the new chip and password as soon as they can . My credit card has alays taken care of me and at one time someone used my credit card number and charged in places I never shop. Visa caught it and called me and asked if I had done any shopping there or course I said no because I didnt . The did not charge me on penny and I was so grateful that they kept there people watching . Send me a new one with a chip as soon as you can .

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mbourgsr March 07 2014 at 4:26 PM

it about time

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decwindows3 March 07 2014 at 5:04 PM

Long overdue!
The Art of it!

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1 reply
HI BEAUTIFUL decwindows3 March 07 2014 at 5:05 PM

DITTO !!!

Flag Reply +1 rate up
ajgivan March 07 2014 at 5:19 PM

When you look at the profit that most bank make, the failure to keep up with the rest of the world is not justifiable. They can and should have made this change years ago.

It's about time they stopping crying and remembered they are supposed to be in the "Service" section of business.

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Steve March 07 2014 at 5:33 PM

In the 90's I had a sample of this new technology -- chip in a credit card -- it was from Slumberger

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2 replies
Steve Steve March 07 2014 at 5:34 PM

Slumberger

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Steve Steve March 07 2014 at 5:36 PM

I'll get spelling right -- schlumberger

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flyhigh96 March 07 2014 at 5:41 PM

I recently vacationed in Europe and used my US Credit card(s)....and at one location, they could NOT read it when swiped, and looked for the "chip" which of course it did not have. So they got out the old fashioned manual machine, with the paper and carbon copies and manually ran it thru.

I said something about being old fashioned and the clerk said the US was old fashioned. LOL.

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1 reply
Donal flyhigh96 March 07 2014 at 6:59 PM

EU is way ahead of us in this matter also with Cell Phones they are less expensive.

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sprintracer3 March 07 2014 at 5:55 PM

It also puts a burden on the business owner as they will end up buying the machines to handle the new chips, new rules and regulations , I have had to buy three machines just to keep up with laws, now another one. plus costs of accepting debit and credit cards. It all adds up in the end!

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Paul March 07 2014 at 6:13 PM

They ONLY bother with this when the big retailers complain of lost business. Our financial lobby runs things so were always behind when it comes to the consumer. Even our currency only recently began to get security features that the rest of the developed world has had for 10 years.

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the zitko's March 07 2014 at 7:01 PM

that or just pay with cash ??????

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