Retailers and authorities work together to improve card security in US

Monday 20 October 2014 13:35 CET | News

The Retail Industry Leaders Association (RILA) has responded positively to the US President addressing weaknesses in debit and credit card security.

As part of an executive order, the President will set a new policy that requires newly issued and existing government credit and debit cards to be enabled with chip and personal identification number (PIN) technology.

Retailers agree with the Presidents action to advance card security. According to RILA, the card security system in place today in the US makes it easy for criminals to commit card fraud. Retailers believe that Chip-and-PIN technology will shield US consumers from fraud, just as it has done for consumers elsewhere around the world.

Chip-and-PIN cards enhance card security and reduce cyber threats by rendering the basic card information, which today is contained on a magnetic stripe, useless to thieves. The chip is enabled with a dynamic security feature that generates a unique security code for each transaction, ensuring that the card being used is not counterfeit. The requirement that the cardholder use a PIN ensures that the card is in possession of the rightful person. This two-factor authentication technology is in place in nearly every other G-20 country today.

Many merchants already have Chip-and-PIN -enabled terminals in place today and the entire retail industry is on track to have completed an enormous investment in order to be able to accept Chip-and-PIN cards in 2014. But, banks, credit unions and card companies such as Visa, MasterCard, American Express and Discover intend to begin issuing chip cards in the US without the functionality of PINs.

Regulators and law enforcement have also expressed support for moving towards more advanced Chip-and-PIN card technology used in Europe and elsewhere throughout the world today.

RILA is the trade association of global retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than USD 1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.

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Keywords: retailers, President, card security, US, web fraud, online security
Categories: Fraud & Financial Crime
Countries: World
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Fraud & Financial Crime

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