PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Credit and Feds Chip and PIN Order

By Michael Misasi
October 21, 2014
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Pos terminal confirms the payment by smartphone. Vector illustration in flat design on green background. nfc payments concept

Pos terminal confirms the payment by smartphone. Vector illustration in flat design on green background. nfc payments concept

Last Friday, President Obama signed an executive orderthat requires the federal government to use chip and PIN technology on all ofits payment cards, and to upgrade the point of sale terminals in places likenational parks to accept chip and pin cards.

The initial wave of reissuance will be focused on prepaidcards used to distribute Social Security benefits. As previously reportedby PaymentJournal, Mercator Advisory Group estimates thatthere are about 3 million of these cards in circulation, which, depending onthe cost per card, could mean a cost of anywhere from $15 to $20 million toreplace. An additional 3.3 million purchasing, travel, and fleet creditcards have also been issued as part of the federal governments GSA Smart Payprogram, which brings the total cost of reissuance closer to $30 billion.

And since many state governments followfederal-level best practices when implementing their credit card programs, itis likely that many states will also move to chip and PIN technology. Mercatorestimates that another 2 million purchasing, travel, and fleet cards have beenissued as part of state-level procurement initiatives.

Ambiguous language in the executive order (particularlyregarding if the chip will replace or operate in addition to the traditionalmagnetic stripe) suggests the federal government hasn’t thought through all ofthe issues related to this change. We can presume then, that it has also notyet come to the realization many banks and merchants did long ago – that EMV isexpensive. The industry should be prepared to educate the government inorder to avoid getting caught up in deadlines for changes that are moreaggressive than what it had planned. The order could very well end up beingrefined before implementation.


Overview by Michael Misasi, Analyst, Credit Advisory Service for Mercator Advisory Group

Read the Fact Sheet: Safeguarding Consumers’ Financial Security

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    cross-border tokenized deposits

    Ant International and HSBC Pilot Cross-Border Tokenized Deposit Transfers on Swift

    December 12, 2025
    Fiserv stablecoin

    Three Small Business Trends That Banks Can Hop On in 2026

    December 11, 2025
    echeck

    Beyond Paper: Why More Businesses Are Turning to eChecks

    December 10, 2025
    metal cards

    Leveraging Metal Cards to Attract High-Value Customers

    December 9, 2025
    fraud as a service

    Keeping Up with the Most Dangerous Fraud Trends of 2026

    December 8, 2025
    open banking

    Open Banking Has Begun to Intrude on Banks’ Customer Relationships

    December 5, 2025
    conversational payments

    Conversational Payments: The Next Big Shift in Financial Services  

    December 4, 2025
    embedded finance

    Inside the Embedded Finance Shift Transforming SMB Software

    December 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result