StrategicNYCSocial

US Retailers Call on Congress to Introduce ‘Smart’ Credit Cards 

The much publicized data breach at Target and Neiman Marcus has caused retailers to call upon Congress to promote the use of Europay, MasterCard, Visa (EMV) technology on credit cards. Used widely in Europe since the 1990’s, the cards protect the card holder’s data by storing the information in a secure chip on the front the card, accessible by their individual PIN number. 

Matthew Shay, CEO of the National Retail Federation is promoting the use of the technology as a way to cut down on the $4bn+ lost through fraudulent credit card transactions every year. There has previously reluctance to introduce the technology on the part of both the credit card companies and the retailers, with fears of increased costs being passed onto consumers, however with the latest data breach and Visa, MasterCard, Amex and Discover stating that they want to see the ‘Chip and Pin’ system implemented by October 2015 then there may now be movement towards the new technology. At $1.25 each, the cards are roughly five times more than those with magnetic strip, but many retail and banking stakeholders deem the cards essential in stopping fraud. The Nilson Report in to the payments industry stated that the US in the only country in which fraud continues to grow consistency and as the number of victims from the Target data breach is reported as close to 40 million customers, it is clear that industry leaders need to work together to find a secure solution for online payments.