99.9% of card terminals in Europe are already chip-enabled.
Credit card firms including EuroPay, MasterCard, and Visa (EMV) are reportedly preparing to ditch the ‘swipe-card’ for a chip-based authentication system called EMV, in the wake of alarming rise in credit card fraud across the world.
With 99.9% of card terminals in Europe being chip-enabled, the US is reportedly slow in adopting the new technology despite being hit by credit card breaches.
A report from on EMV from Diebold noted that the new ‘chip-and-PIN’ cards are secure than American swipe-cards, which integrate a chip that generates a new transaction code for every transaction, making duplication nearly unfeasible.
The report claims that traditional magstripes on rear side of credit and debit cards are often exploited to compromise personal user data.
Last December, US retailer Target was hit with massive data breach, affecting about 70 million consumers.
Further, EMV beefs up authentication of debit and credit card transactions, and the embedded chip integrated in each card can store data more securely compared to a magnetic stripe.
The report adds that several major retailers, including Wal-Mart, Home Depot and Best Buy, have also been deploying EMV-compliant POS terminals.
A new Forbes report noted that by next October, about 70% of credit and debit cards in the US will be integrated with EMV chips.