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U.S. Finally Getting Smart

U.S. FINALLY GETTING BANK SMART It took the hacking of 70 million Target credit cards during the 2013 holiday season to spur Congress into abandoning the highly unsecure magnetic stripe cards used by most Americans and setting a deadline for the new (to the U.S., anyway) smart card technology. While Americans are just starting to learn what a smart card is, it's been (successfully) used in other markets for more than 20 years, making the U.S. the only major market on the planet still using the swipe and sign technology. 1. 2 The 'New' Tech EMV (stands for: Europay, MasterCard and Visa) “smart cards" Uses chip and PIN or chip and signature technology and multiple layers of security, including an embedded chip and unique identifier, which can change at any time 2 Regular magnetic stripe card BANK Why is it better? With a magnetic stripe card, data can easily be read, written, deleted or changed with off-the-shelf equipment, leading to high credit card fraud 4 Hacking into a system to collect information on a chip and then creating a counterfeit credit card is too complicated 3 50% 50% Proportion of world's total credit card fraud occurring in the U.S., despite accounting for just 25% of card use 2 Drop in fraud losses after a market's first year using EMV 2 78% Drop in counterfeiting after a market's first year using EMV 2 25 50 75 More than 130 Countries in Europe, Asia and Latin America have switched to smart card technology, making it harder for Americans to travel abroad with their magnetic stripe cards 5 OEvolution of the Smart Cardo When the current 1960s) (magnetic stripe) card, which we still use, was invented2 Bank Smart cards start to make an appearance in the U.S. (10 million -15 million), but still account for The EMV less than 1% 3 smart card is introduced in France? 1992 BANK BANK 2013 50 million-70 million Deadline for estimated smart rollout of cards in the U.S. smart card October 2015 technology in the U.S.2 2014 000 Rollout deadline for gas stations (more costly and complicated)3 October 2017 Why is the U.S. Late to the Party? o BANK / Must get three sectors to work together to implement technology (retailers, big banks and card Hard to get a large market (10 million Store credit card terminals and 1.2 billion cards) to adopt associations like Visa and MasterCard)6 Expensive. The cost of the changeover is an estimated $35 billion, to be mainly shouldered by retailers7 Strong legal protection for citizens who have their cards stolen, Stare resulting in a "so what's the problem?" attitude 6 Once implemented, the liability will no longer fall onto the consumer 2 SOURCES: 1. 2. 4. BANK

U.S. Finally Getting Smart

shared by StaceySD on Apr 02
After a recent spike in credit card theft in the United States, Congress is abandoning unsecure traditional payment methods for “smart card” technology. Although these more advanced credit cards ...


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