The Migration From Magnetic Stripe And The Europay Mastercard- Visa

992 WordsFeb 26, 20164 Pages
“The migration from magnetic stripe to the Europay-MasterCard- Visa (EMV) chip standard promises enhanced credit card security, and the opportunity to offer loyalty and reward programs to cardholders”(Peterson, 2004). EMV chips are finally gaining a strong momentum in the United States banking system. The promise of enhanced security and benefits is a hit with banks and consumers alike. The United States is very late to the game though; Europe and Asia have implemented the EMV technology since the early 2000s. "Within Asia-Pacific, Visa has issued more than 20 million Visa EMV cards, and globally this figure is in excess of 100 million. Since January 2003, every new point-of-sale terminal deployed in the region is required to be EMV-compliant. By 2008, we expect over 90 per cent of all terminals to be EMV-enabled”(Peterson, 2004). Credit unions and banks have finally begun rolling out the EMV chip enabled debit cards to customers. The adoption percentage will hit the low 70s, far lower than countries that have had the technology already. A low adoption percentage of EMV shows how the current banking system is slow to adapt to change. If the banking system wants to be current and keep cost low they need to start embracing new technology as soon as it becomes available. The issue banks/credit unions will face is; any fraud that occurs on customer’s accounts with debit card will be their responsibility. Our current banking system needs to adopt the new EMV technology faster,

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