Visa pushes for EMV (chip/pin) adoption in the US

Discussion in 'Other Credit Card Programs' started by jbcarioca, Aug 12, 2011.  |  Print Topic

  1. jbcarioca
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    jbcarioca Gold Member

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    Visa pushes for EMV adoption
    Visa has announced its plan to accelerate the migration to EMV-based chip technology in the US, a move that will “help prepare the US payment infrastructure for the arrival of NFC-based mobile payments”.

    After years of reluctance, the adoption of EMV contact and contactless chip and pin cards in the US will not only accelerate innovations in mobile payments but will help to secure card payments through “dynamic authentication”, according to Visa.

    "As NFC mobile payments and other chip-based emerging technologies are poised to take off in the coming years, we are taking steps today to create a commercial framework that will support growth opportunities and create value for all participants in the payment chain,” said Jim McCarthy, global head of product at Visa.

    Visa believes an EMV-based chip and pin system will provide better security surrounding card payments and will help to reduce fraud. In February, the payments company announced the Technology Innovation Program (TIP) for international merchants. The program aimed to recognise the security benefits of dynamic authentication, enabled by EMV chip, and offer tangible benefits to merchants who update their POS infrastructure to accept chip cards.

    Ellen Richey, chief enterprise risk officer at Visa, said "Dynamic authentication is the key to securing payments into the future. The migration to chip technology will be an important security layer and a critical step in a comprehensive strategy to use dynamic authentication across all markets and all channels."

    Up until now, the US has been reluctant to migrate to EMV as the industry struggled to find the successful business model. However, one issuer introduced the chip and pin cards to the US market. In May 2010, the United Nations Federal Credit Union (UNFCU) issued the first EMV chip card in the US to overcome the difficulties its cardholders have had when using their magnetic stripe cards in other markets.

    One of the concerns associated with magnetic stripe cards in the US is not just their vulnerability to fraud, but issues with interoperability in other markets around the world. Visa notes this concern as one of the factors influencing the need for EMV chip-and-pin adoption.

    "By encouraging investments in EMV contact and contactless chip technology, we will speed up the adoption of mobile payments as well as improve international interoperability and security,” said McCarthy.

    The plan to migrate to EMV is supported by companies across the industry, with Walmart, McDonald’s, Nordstrom and Mercator Advisory Group commenting positively on Visa’s decision.

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  2. gobluetwo
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    gobluetwo Silver Member

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    So this is basically the smart chips they use in other geographies, right? It was a pain not being able to buy train tickets with my credit card in Paris and Zurich! It adds up when you're traveling with colleagues.
     
  3. jbcarioca
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    jbcarioca Gold Member

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    That is exactly it. Almost all countries use the same standard, the US and Russia being the largest holdouts. Even in Russia cards issued for international use are usually EMV compliant. The US has resisted, as the article says, and Visa is now officially pushing. MC is anxious too so they'll be on board. the large issuers and merchant acquirers are the ones who don't want to pay for the upgrade.

    With EMV at point of sale there is usually a portable card processor that allows you to enter your pin, so the card never, ever leaves your sight, another advantage.
     
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  4. Million Mile Secrets

    Million Mile Secrets Silver Member

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    About time!

    I am tired of being looked at wearily when I hand over my slim US-issued card.
     
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  5. jbcarioca
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    jbcarioca Gold Member

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    I do agree. I have other cards that I use but ti would be nice to use US cards too without the odd looks.
     
  6. travlr

    travlr Silver Member

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    This would be awesome. I've had to buy the stupid Travelex ripoff chip&pin cards to buy train tickets from machines that only take the EMV cards.
     
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