Industry group formed to guide U.S. payment card upgrade

The U.S. plans to move to payment cards with a microchip by 2015 to cut down on fraud

An industry group launched on Tuesday will guide a massive upgrade of the U.S. payment card system to a new platform designed to prevent card fraud.

The EMV (Europay, MasterCard, Visa) Migration Forum will coordinate efforts to enable the U.S. payment card system to accommodate EMV cards, widely deployed throughout Europe and in other parts of the world.

The group is intended to be around for at least three years until payment acquirers, merchants, issuers and processors have mostly transitioned to EMV around 2015, the forum said.

EMV payment cards contain a microchip with advanced cryptographic capabilities that are used to authenticate a transaction with banks' back-end systems. Transactions are authorized after a consumer enters a PIN.

The microchip has so far been less vulnerable to fraud, although security researchers at the University of Cambridge have pointed out faults with the system in academic settings and developed specialized attacks.

The microchip cards are intended to eventually move payment systems away from using the magnetic stripe on the back of cards, which is easily copied and used to create counterfeit cards.

Countries throughout Europe, which are mostly using EMV, have not been able to halt magnetic stripe transactions in part because EMV hasn't been rolled out in the U.S. To do so would make it difficult for travelers to and from the U.S. to use their cards.

Credit card companies such as Visa and MasterCard spearheaded the move to EMV in Europe, spurring retailers to upgrade their point-of-sale terminals with the threat of new fraud liabilities if they processed magnetic-stripe only transactions.

The transition to EMV is daunting: payment terminals must be replaced, EMV payment cards must be issued to customers and ATMs need hardware and software upgrades. Those changes, which are just a few examples of needed changes in the complicated systems, are expensive and occur slowly.

Australia, a country of 22 million with four major banks, began planning to migrate to EMV in 2007. As of this year, the majority of transactions are still performed with magnetic stripe due to a slow rollout of chip-enabled payment cards. The country expects by 2015 to mostly use EMV.

The EMV Migration Forum is scheduled to hold its first meeting Sept. 12 and 13 at MasterCard's headquarters in Purchase, New York.

Send news tips and comments to jeremy_kirk@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?