Get ready for it - Chip in cards coming soon

Our office just got this notice about the change towards chip cards coming in 2015:


EMV is a term that everyone should learn to be familiar with. It stands for Europay-MasterCard-Visa, and is a standard which will see the replacement of the current magstripe credit card with a smart card. Since the card will have a chip, and authorization will require a pin, this is often called chip-and-pin.

The current standard for the Payment Card Industry is called PCI. The EMV standard will supplant PCI in October 2015 for the major American card processors. The EMV card can either be contact (insert card into a slot) or contactless (tap). Retail merchants will have to replace their current Point of Sale equipment with EMV-compatible card readers and networks.

There are two major benefits to moving to smart-card-based credit card payment systems: improved security (with associated fraud reduction), and the possibility for finer control of "offline" credit-card transaction approvals. One of the original goals of EMV was to allow for multiple applications to be held on a card: for a credit and debit card application or an e-purse.

EMV chip card transactions improve security against fraud compared to magnetic stripe card transactions that rely on the holder's signature and visual inspection of the card to check for features such as hologram. The use of a PIN and cryptographic algorithms provide authentication of the card to the processing terminal and the card issuer's host system. The supposed increased protection from fraud has allowed banks and credit card issuers to push through a 'liability shift' such that merchants are now liable for any fraud that results from transactions on systems that are not EMV capable.

American Express is implementing a liability shift for point of sale terminals in October, 2015.

Discover is implementing a liability shift on 1 October 2015.

MasterCard is implementing a liability shift for point of sale terminals in October, 2015.

Visa is implementing a liability shift for point of sale terminals on 1 October 2015.


If you currently have a credit card, you will probably get a replacement EMV card within the year. Any venue accepting point-of-sale credit card payment will need to replace credit card systems by October 1, 2015 or assume liability for any fraud.

 

We've had this for years in Canada...and we were one of the late adapters to this technology...geezus America...get it together! lol

 

Like changes (resort fees, etc.) in vegas, we are slow to get with the plan, lol.

 

I've had the contact chip in my two main cards for a while (an AMEX and Visa) but its good to see we're finally making it a standard like the rest of the world.

 

My understanding is that they tried to do it in the U.S. for a number of years, but not enough people were adopting it at point of sale

 

I've actually forgotten about signing for stuff at home and in Europe it's been so long. Glad you're getting in line with others.

 

i prefer it. I felt very unsafe when the hotels just swiped it and i didn't have to enter pin or sign. I prefer to see exactly what is being put on it. Same at the stores, i knew you guys didn't have chip pin but i still was unprepared for how it made me feel.

 

Amazed this isn't more commonplace across the States already, I think we've had this now for 10 years plus in the UK.

 

Welcome to the 21st Century America .... exceedingly late to the party but welcome nonetheless .... we'll get you to First World status eventually

Furry

 

So let me get this straight...

This new card is going to require a PIN for EVERY transaction? where as now only certain transactions (over a certain $$ amount) require a PIN or signature...

 

Yes, that's correct. You'll be grateful for it soon as it pretty much stops fraud and it takes seconds.

 

yup, extremely easy. As i already mentioned i felt so uneasy just handing over my card. At least this way you HAVE to authorize the charge, and get to see how much they entered, before you accept it.

 

The USA is extremely slow in adopting things like this: just so much red tape and lobby groups that'll be against it... and then most retailers won't make the change so when the deadline comes they'll all protest and the thing will get a long extension that will just get pushed back further as it approaches.

End result will be: don't expect this to be anything actually mandatory in the USA until 2019 at the earliest, maybe 2020

 

Not before time! I can't believe a country like the US has been so late in adopting this.

 

Sure the US may not have a silly credit card gizmo but we have VEGAS!!!!!

 

My card has had this chip in it for 3 years now, but no one here takes it as of yet! So yeah, it's gonna take awhile before we actually implement this thing full-time.

 

Actually our head (I edited my OP) said that after October 2015 we would be responsible for any fraud occurring if we didn't install the new machines that required chips and pins and accepted cards that didn't have them. Needless to say I think our local (government) offices will be compliant by October 2015.

He also said that all the major cc companies will require it, they will not be responsible for any fraud occurring if you accept cc's and debit cards without chips after October 2015.

but as you said, it will be up to the major cc companies to enforce it. I think after the first few fraud cases the companies will start to get with the plan IMHO.

 

It's was great idea but as in the UK it is not 100% secure, no matter what they tell you. There have been many incidences where cards have been used "fraudulantly" and the card company has caried out checks. If their finings are that the pin was used it is up to the "card holder" to prove it was not them that authorised the transaction, which has turned out to be a lot harder than it sounds

 

My Bank of America credit card has that chip technology, but so far the only local place that uses the technology is the liquor store down the street. It's a much better system, but I hope I will get to choose my own PIN because I have five different credit cards and I don't want to have to remember all those PINs.

 

No kidding! America is the last nation on Earth still using inches, feet, miles, pounds, dozen, instead of kilometer, meter, etc.

Ifcourse Brits and Aussies drive on the wrong side of the street.

BTW, which nations have Sunday as first day of the week?