By Michael Calia
Sam's Club, the warehouse-club chain owned by Wal-Mart Stores
Inc., said it would unveil a new credit card that features
chip-enabled security technology.
The new card--co-branded with MasterCard Inc. and issued by GE
Capital Retail Bank--represents the first active adoption of the
technology by a mass retailer, Sam's Club said.
MasterCard and rival Visa Inc. said in March they would form a
group to accelerate the adoption of advanced computer chip
technology, known as EMV, which is intended to make it more
difficult for thieves to duplicate. The companies said then that
the group would include banks, credit unions, merchant processors,
makers of payment terminals and industry trade associations.
The companies have set an October 2015 deadline for retailers to
adopt the technology more broadly, although the National Retail
Federation has questioned the return on investment to update
payment systems with EMV technology. The group has said it agrees
that cards using both PIN- and chip-based technologies represent an
improvement in data security, but it thinks retailers will upgrade
at their own pace.
The security efforts come amid a series of breaches involving
retailers and other companies, such as Target Corp., that have
exposed the financial information of millions of consumers.
"This move by Sam's Club makes them a trailblazer in getting
chip cards in the hands of businesses and consumers, and leading
the push toward a safer and more secure customer experience," Chris
McWilton, MasterCard's North American president, said Tuesday
night. "This will no doubt help drive chip-enabled technology
forward here in the U.S. as it gains more traction."
The new card, along with a new rewards program linked to it,
will become available June 23, Sam's Club said.
Write to Michael Calia at michael.calia@wsj.com
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