Europe's Improved Credit Card Tech Is Finally Coming to America
Perhaps one day in the future, hacked credit cards will be a thing that we look back on with wonderment. We'll ask ourselves "How could we ever let that happen?" and "It seems so strange that this existed." You know, sort of like how we look at Nelson now. The main driver for our hope is the new executive order signed by President Obama. The order is a call for the United States to adopt new credit card tech, and that's a good thing for all of us.
With more credit cards hacked almost every day (ask a Target, Home Depot or Michael's shoppers about this) the new tech will be welcomed with open arms. The tech — known as EMV, because it was created by Europay, MasterCard, and Visa — uses a chip and pin system instead of the magnetic strips we have today (it's called "chip and pin"). The EMV has been used by Europeans, but because Americans are dumb, we've been slow to give it a shot. But the upgrade would be immense.
"The chip embedded on EMV cards creates a unique code for each transaction when the card is used, so stealing the card number is much more difficult for an attacker," Megan Geuss explained over at Ars Technica. "In addition, EMV cards can require the customer to enter a PIN for each transaction, creating another level of security against fraud. EMV is not hack-proof, but it is considered far safer than the magnetic-stripe status quo. The standard was first adopted a decade ago in Europe where card fraud was rampant, and once the transition was complete, fraud committed by taking credit card numbers from point-of-sale terminals diminished significantly."
If EMV is so great, what's the hold up? Money, of course! Retailers are already equipped with standard card readers, and so they'll want the credit card companies to foot some of that bill. And how do you see the credit card companies reacting to that?
The good thing is that with Obama's order, things have to take effect. Companies have pretty much no choice. "Home Depot, Target, Walgreens, and Walmart will be rolling out secure chip and PIN-compatible card terminals in all their stores — most by January 2015," explains the White House's EMV Fact Sheet. "Also in January, American Express will start a new program to support small businesses upgrading their point of sale terminals to more secure standards. Finally, Visa will launch a new program to educate consumers and merchants on chip and other secure technologies, sending experts to 20 cities in a national public service campaign."
Of course, eventually hackers will figure out the EMV tech and annoy everyone all over again. But wouldn't it be nice to feel safe for at least a couple years?
[Image via Flickr - Seth MacEntee]
