As the issue with credit card fraud in the U.S. increases, we continue see more coverage in mainstream media around the need for greater payment security. On May 27th, The Today Show on NBC released the latest in their series titled “Hackers of America”. The report focused on how easy it is for hackers to steal the cardholder’s information from a magnetic stripe and use it to create fraudulent mag-stripe cards. Tom Costello noted in his interview with James Lyne, Head of Security Research at Sophos, that EMV is “the next step” towards solving this problem.
As awareness of this problem grows, we’ve seen various stakeholders in the payments industry continue to support a rapid rollout of EMV in the U.S. In my last C-Store Advisor Blog, EMV Liability Shift Dates Standing Firm, I commented on recent statements made by the major card associations about their commitment to hold the current liability shift dates in October 2015 (in-store POS) and October 2017 (Automated Fuel Dispensers) in order to incentivize the market to adopt EMV technology.
We’ve also seen new evidence that financial institutions are accelerating the deployment of chip-enabled credit and debit cards to the U.S. market. A report released on May 4th from The Payment Security Task Force indicated that 63% of total cards in the U.S. would be chip-enabled by the end of 2015. This projection has increased from 54% of total cards in a similar poll of card issuers conducted in August of 2014. This equates to approximately 150 million more EMV cards in the market this year than previously predicted.