MasterCard, Visa form group to enhance payment security

Fri Mar 7, 2014 11:29pm IST

A credit card user displays her cards in Washington February 22, 2010. REUTERS/Kevin Lamarque/Files

A credit card user displays her cards in Washington February 22, 2010.

Credit: Reuters/Kevin Lamarque/Files

Related Topics

Stocks

   

REUTERS - Visa Inc (V.N) and MasterCard Inc (MA.N), the world's two largest payment networks, have formed a new cross-industry group to improve payment system security following a number of high-profile data breaches.

The new group, which will include banks, credit unions, retailers and industry trade groups, will initially focus on the adoption of the safer 'EMV' chip technology in the United States, MasterCard and Visa said on Friday.

EMV chip technology, already used in Europe and Asia, stores information on computer chips rather than on traditional magnetic strips. EMV stands for Europay, MasterCard and Visa, the companies that launched the technology.

The move follows several data breaches at U.S. retailers, including one at Target Corp (TGT.N) late last year involving the theft of about 40 million credit and debit card records.

"We remain insistent that U.S. retailers' customers be given the same protections as consumers in more than 80 countries who have both a chip and a PIN securing their credit and debit cards," National Retail Federation General Counsel Mallory Duncan said in a statement.

MasterCard and Visa had already set a deadline of October 2015 for U.S. retailers to adopt the new payment technology.

But banks and retailers have been dragging their feet over the required upgrade, at odds over who should bear the cost, which experts say could be as much as $10 billion.

Target said last month it was accelerating a $100 million program to implement the use of chip-enabled smart cards to protect against cyber threat, with a goal to have the technology in place by early 2015.

EMV cards are harder to counterfeit and better protect sensitive data through encryption.

They can also require users to enter a personal identification number, or PIN, to make purchases, adding an extra layer of security.

"The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security," Visa President Ryan McInerney said in the statement.

(Reporting by Aman Shah and Siddharth Cavale in Bangalore; Editing by Kirti Pandey and Don Sebastian)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-Nepal Ties

REUTERS SHOWCASE

Wipro Reaps Profit

Wipro Reaps Profit

Wipro Q1 profit up 30 pct on new contract wins   Full Article 

Monsoon Revives

Monsoon Revives

Monsoon revival keeps rain above average   Full Article 

Tackling Food Prices

Tackling Food Prices

India to free up extra 10 million tonne wheat in open market  Full Article 

Facebook Results

Facebook Results

Facebook beats Wall Street targets, stock hits record high  Full Article 

Struggling Economies

Struggling Economies

Asian economies to struggle on weak export demand - Reuters poll  Full Article 

Mining Roadblock

Mining Roadblock

Coal India's plans for 20 mines hit by land, environment delays  Full Article 

Power Jolt

Power Jolt

UAE's TAQA pulls out of India power plant deal with Jaiprakash  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage