U.S. Move to Chip Cards on Track
September 30 2015 - 8:30AM
Business Wire
Issuers from the Payments Security Task
Force Confirm Nearly All U.S. Payment Cards to Feature Chip
Technology by 2017
The Payments Security Task Force (PST) today shared the latest
in a series of updates from payment card issuers, acquirers, and
merchants on the U.S. move to chip technology.
The PST’s eight financial institutions reported that 30 percent
of their U.S. consumer credit and debit cards contain EMV chips as
of June 30. These issuers represent approximately 50 percent of
U.S. payment card volume.
According to the forecast, the number of chip cards in the U.S.
from these issuers will to grow to 60 percent by the end of this
year, expanding to 98 percent by the end of 2017.
“The latest forecast demonstrates the tremendous progress made
to make chip cards a reality in the U.S. Consumers are the winners,
as issuers and merchants are both working to deliver greater
protections when paying for a purchase,” said Chris McWilton,
president, North American Markets, MasterCard.
Chip technology protects in-store payments from counterfeit card
fraud. A small computer chip in the payment card uses cryptography
to generate a one-time use code for every transaction, making it
virtually impossible to create counterfeit cards.
“This is a key milestone in a multi-year transition to chip
technology in the U.S.,” said Ryan McInerney, president of Visa
Inc. “The speed at which merchants are installing chip-enabled
terminals and financial institutions are issuing chip cards
demonstrates the industry’s commitment to investing in technology
to protect consumers.”
A survey of PST acquirers estimates that approximately 40
percent of their terminals will be capable of accepting chip cards
by the end of the year.
These efforts are part of a long-term collaborative effort to
implement technologies like chip, tokenization and point-to-point
encryption to protect the payment ecosystem from fraud. Additional
details are available in the PST’s “U.S. Payments Security
Evolution and Strategic Road Map.”
(http://www.pymnts.com/wp-content/uploads/2014/12/US-Payments-Security-Evolution-and-Strategic-Road-Map-for-Release.pdf)
About the Payments Security Task Force
The Payments Security Task Force was formed in early 2014 to
drive executive-level discussion for the purpose of enhancing
payments system security. The Task Force includes a diverse group
of participants in the U.S. electronic payments industry, including
payment networks, banks of various sizes, credit unions, acquirers,
retailers, point-of-sale device manufacturers and industry trade
groups.
Among the Task Force participants are American Express, Bank of
America, Capital One, Chase, Citi, Credit Union National
Association, Discover, First Data, Global Payments Inc., Kroger,
National Association of Federal Credit Unions, Marriott,
MasterCard, Navy Federal Credit Union, Sheetz, Shell, Subway, U.S.
Bank (Elavon), Vantiv, VeriFone, Visa Inc., Walgreens, and Wells
Fargo & Company.
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version on businesswire.com: http://www.businesswire.com/news/home/20150930005464/en/
MasterCardJim Issokson,
914-249-6826James_issokson@mastercard.comorVisaJennifer Morris,
202-760-0145jemorris@visa.com
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