Desjardins Group to Switch to Chip Technology

Canadian Desjardins Group will soon be adopting chip technology for its members debit and credit cards. Canadian Interac Association has recently announced that by the end of 2006, it will have the necessary infrastructure to process transactions using this new technology.

In paving the way for the introduction of chip cards, Desjardins will be modifying its systems so that members will be able to carry out transactions at ATMs or POS terminals found in many stores. Desjardins expects the first chip transactions to be made starting in 2008. Chip cards are equipped with a tiny silicon chip similar to a computer, which offers a variety of possibilities for both consumers and businesses. It also offers a higher degree of security. Furthermore, since not all financial institutions will be switching to this new technology at the same time, the new cards will be a kind of hybrid, with the magnetic stripe still present, enabling them to be used elsewhere around the world, where smart card technology has not yet been introduced. Desjardins has been an active participant in a national committee created to define common Canadian chip card specifications. The company also tested the Mondex ecash card in Sherbrooke in 2000, which provided useful information on chip technology. In 2004 alone, more than 500 million direct payment and ATM withdrawal transactions were carried out by Desjardins caisse members in Québec.o