The Pathway to Better Security: EMV Education is lacking

posted 6/19/2014 in Banking

The implementation of the EMV payment method in the United States may not be here before the 2015 deadline because of the lack of education to retailers and consumers. A recent report came out with information that education is lacking for consumers and retailers because no one is teaching them about the EMV-chip cards.


The key for the early 2000s implementation of the EMV-chip cards in Europe was educating consumers and it was all built into their plan. The United States is having trouble with implementation because the educational piece of the pathway to better security is not as straightforward in the process.


A main problem in the United States when it comes to the EMV-chip cards is the divide amongst card issuers in choosing chip and PIN cards or chip and signature authorization.
The pathway to better security involves a form of liability switching, which means the credit card companies would not be liable for fraud. The retailer would be liable if they did not offer the EMV-chip payment method.


Because of the liability switch, retailers need education about the benefits of investing in EMV-chip card readers for their retail locations. EMV education is lacking for retailers because they are still skeptical about the benefits of switching to the new technology.


Some believe the downfall to EMV is that it does not protect from fraud if someone has your card number. Visa and Mastercard have taken action on this front by working on a technique called tokenization. This technique is where a random number is used per transaction instead of the same 16-digit code that is currently assigned to all cards and used for every purchase by a cardholder.

Lincoln Savings Bank has a special interest in keeping you informed about major changes in the financial technology that will eventually affect you. If you are a small business or consumer and you have questions, Lincoln Savings Bank would be happy to help you at any of our locations.
Lincoln Savings Bank, Member FDIC

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