Visa and Mastercard are requiring major retailers and banks to have implemented the security chip into their credit card program by October 2015. This chip can be found on the front of the credit card.
Credit Card Website, www.CardHub.com just recently released its 2015 EMV Migration Report – which analyzes the smart-chip credit card plans and progress of the country’s 10 largest credit card issuers as well as 55 major retailers.
Here are some findings of the study.
” All 10 of the largest credit card issuers are in the process of issuing chip-based credit and debit cards and expect the majority of their portfolios to be updated by the end of 2015.
” All chip-based cards issued by major banks will continue to have magnetic stripes – enhancing usability while also mitigating certain fraud protection benefits.
” All of the major retailers that responded to our survey are on track to meet the October 2015 EMV transition deadlines set by VISA and MasterCard.
” This one is the most disturbing finding. Retailer transparency regarding the security chip program is surprisingly low given the level of consumer concern about data breaches and financial security. Only 17 of the 55 retailers we contacted provided information about their policies – including just 25% of those that have been victims of breaches. It makes you wonder if retailers are just giving up and not even trying to fight a situation that they think they can’t win.
” In the event a chip card is not automatically re-issued, consumers can call and request one from customer service.
To check out the full report, please visit:
I asked spokesperson Jill Gonzalez what was so special about this new chip.
Instead of magnetic strips, EMV cards use microprocessor chips, which are almost impossible to duplicate. The cards are tapped or waved about an inch in front of updated terminals — the exact method will vary from retailer to retailer. Each transaction made using an EMV card is approved using a unique authentication code that can only be used once. So, if a retailer falls victim to a payment information breach, that information cannot be used to make additional purchases or create fraudulent accounts – Jill Gonzales
Bottom line – don’t wait around for your bank or retailer to send you a new card. Be proactive, call them, and request that they send the new card to you.