MADISON, Wis. (12/3/12)--Will smart cards be the standard for U.S. plastic payments within the next five years? According to a new white paper from CUNA Operations Sales and Service (OpSS) Council, that will be the case if major card companies' wishes come true.
Visa, MasterCard, Discover and American Express all have recommended timelines to make smart card technology the standard in the U.S. by 2017.
The paper, entitled "The Smart Card Timeline: Moving From Mag-Strive to EMV Technology," explores the merits and complications of switching from magnetic stripe to smart card technology.
EMV stands for Euro, MasterCard and Visa, a global inter-operation of integrated circuit or chip cards and point of sale terminals that is used in authenticating credit and debit card transactions. The U.S. has lagged behind other countries in adopting the smart chip technology.
The CUNA OpSS Council paper discusses factors that are converging to make the migration to smart cards more likely and palatable to the U.S. market. These factors include global acceptance, mag-stripe obsolescence, soaring counterfeiting and fraud trends, and the increasing popularity of mobile transactions, it said.
The paper also noted that cooperation will be needed to complete a shift to smart cards, with major investments from all players-consumers, retailers, card issuers, processors and equipment vendors.
The white paper is available online by using the link. CUNA Council members are eligible to receive complimentary copies of more than 300 CUNA Council white papers. For more information, use the link.