ATLANTA (7/23/14)--Chip-embedded credit and debit cards are gaining steam for financial institutions card issuers, merchants, acquirers and others, according to a post in the Federal Reserve Bank of Atlanta's Portals and Rails blog.
In October 2015, parties that make investment in deploying Europay-MasterCard-Visa (EMV) cards with embedded chips will be protected from financial liability from card-present counterfeit fraud losses.
The EMV standard would replace the previous cards with magnetic strips, which can leave financial institutions, particularly small ones, more vulnerable to fraud.
The EMV Migration Forum estimates that approximately 100 million EMV cards--9% of the card base--will be issued by the end of 2014. Javelin Strategy and Research estimates that 52% of point-of-sale terminals will be EMV-enabled by the end of 2015.
The Credit Union National Association continues to monitor developments and advocate for credit unions on payments and security issues.