U.S. Slow in Adopting More Secure Payment Cards
The recent Target data breach is a reminder of how the U.S. is a laggard compared to other nations in terms of smart card technology adoption. “What we really need to do is make the investment in this new chip technology so there’s no value in stealing that information,” says EMV Migration Forum director Randy Vanderhoof. Whereas about 80 countries use smart credit cards that offer more encryption and security, only about 1 percent of U.S.-issued credit cards are similarly equipped. “It’s harder to commit fraud against these cards,” notes Nice Actimize’s Joram Borenstein. “You have to steal the chip information, and that’s a lot more difficult.” Experts cite a lack of political will and cultural factors as underlying reasons for the slow U.S. adoption of smart cards. They also say the complexity of the U.S. payment processing system is such that retailers, credit firms, and banks are reluctant to make the necessary investment to undertake a massive conversion from magnetic-stripe to EMV cards. Still, there has been progress, with major card issuers outlining road maps for upgrades in recent years, with many seeking to reach this goal by October 2015.
From “U.S. a Laggard in Adopting More Secure Credit Cards”
Los Angeles Times (12/21/13) O’Brien, Chris