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

U.S. Gets Chance To Catch Up On Credit Card Security

By Mercator Advisory Group
September 12, 2011
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Media.

The market opportunity for smart cards is reaching the popular press. While the statement below is technically true (i.e. we are the last), it does gloss over the fact that the U.S. was among the first major markets to be essentially wired for online transaction authorizations.

The United States is the only developed country still hanging on to credit and debit cards with those black magnetic stripes, the kind you swipe through retail terminals. The rest of the industrialized world has switched —or is in the process of switching— to “smart” chip-based cards.

That being said, there are plenty of good reasons to make the switch now, as Visa’s recently announced initiative confirmed:

Visa’s move comes as industry experts are warning that U.S. merchants are set to become targets for fraudsters in other countries where payment systems already have tighter security. Since counterfeit magnetic-stripe cards are now difficult to use in other countries, these criminals will probably ship the cards to the U.S.

That prospect is especially worrisome now that Mexico and Canada, are adopting smart cards, experts say.

“There’s already evidence that that type of channel for fraud is increasing in the U.S.,” says Sullivan.

The U.S.’s status as a holdout has also started to cause problems for travelers. While most European stores and restaurants still accept magnetic-stripe cards, Americans are finding that their credit cards don’t work in European automated kiosks, like the ones that sell tickets for the Paris Metro. Some U.S. banks, like Wells Fargo, have started issuing smart cards to customers who travel abroad.

As smart cards begin their long rollout in the U.S., it will be important for all stakeholders to avoid “silver bulletitis,” the natural tendency to overhype the fraud control benefits of a new technology. Smart cards will certainly make a dent in counterfeit-driven fraud. Unfortunately, there are plenty more venues for criminals.

Click here for more.
http://www.linkedin.com/share?viewLink=&sid=s580298260&url=http%3A%2F%2Ft%2Eco%2FpnJuLaY&urlhash=H7tO&uid=5518995026937393152&trk=NUS_UNIU_SHARE-lnk&goback=%2Enmp_*1_*1_*1_*1_*1_*1

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Merchant Acquiring

    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

    gift card programs

    The Gift Card Boom—and What’s Driving It

    May 21, 2025
    Fleet Management payments

    Driving Into Digital: How Modernized Payments Platforms Impact Fleet Management

    May 20, 2025
    emerging payment trends

    From the Name on the Cup to Custom Hotel Lighting: The Future of Loyalty Programs

    May 19, 2025
    push notification bank

    From Bland to Beneficial: Using Push Notifications to Reach Business Customers

    May 16, 2025
    recurring payments, PCI Compliance for small business, Fintech for Underserved Small Businesses

    Tariffs May Create an Opportunity in Small-Business Cards

    May 15, 2025
    Using the Card “Beyond” Payments to find the Holy Grail

    Using the Card “Beyond” Payments to find the Holy Grail

    May 14, 2025
    Payments Modernization

    Playing Offense and Defense: Why Now Is the Time for Payments Modernization

    May 13, 2025
    Authorization Rates

    Boosting Revenue for Merchants by Optimizing Authorization Rates

    May 12, 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