Chip-and-Pin Smart Cards from Abroad
| June 1, 2010 |
When it concerns credit card fraud there is no doubt that it continues to remain one of the major interest of almost every cardholder in the United States. As this type of fraud continues to rise around the world many issuers have tried rigorously to find ways to combat it. While here in the U.S., security measures are continuously being developed and implemented; internationally, over the last couple of years issuers have migrated to another type of plastic. That new card is what is known as a chip-and-PIN smart card which on many accounts has done very well preventing its cardholders from fraud.
So what exactly is this chip-and PIN smart card, and why is it considered safe? These cards are both debit and credit cards that contain a microchip embedded within their plastic. The microchip itself stores data such as a pin number that must be verified by the cardholder during a transaction before a purchase can be made. As this number must be entered at point of sale, having one of these smart cards helps prevent the usage of cards that have been stolen or lost, which is the cause of majority of the reported credit card fraud incidents.
When it comes to these smart cards, they have been something that has been discussed in the U.S. for a while now. While they are highly popular with European and Canadian cardholders, they have yet to become widely accepted here in the states. Mainly due to the cost involved to implement such a chip and PIN system many issuers and merchants are reluctant to move from traditional technology. Instead both issuers and merchants look to major processor such as Visa and MasterCard to develop updated security measures to keep their customers money safe. Only time will tell if this will be something cardholders here in the states will be able to use in the future, but if the trend continues to grow abroad it only seem more likely that American cardholders will soon have one of the smart cards in their pocketbooks.
| Share | Tweet |
