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Almost half of merchant payment-card terminals in the U.S. will be able to handle more secure EMV- chip technology by the end of 2015, according to an industry group.
The forecast of 47 percent was based on data from firms including Wells Fargo & Co., Vantiv Inc. and Bank of America Corp., the Payments Security Task Force said today in a statement. In August, nine of the largest U.S. card issuers estimated they would distribute more than 575 million chip- enabled cards by the end of next year,the group said.
Recent data breaches like those at Home Depot Inc. and Target Corp. have increased pressure on banks, payment networks and retailers to implement more-secure systems, including chip cards with EMV technology. Visa Inc., MasterCard Inc. and American Express Co. have given U.S. retailers and banks until October 2015 to adopt EMV — which requires either a signature or a personal identification number — or assume liability for some fraudulent transactions.
“The key to reducing fraud is close coordination and cooperation among card issuers, acquirers, merchants, device manufacturers, and the networks in the deployment of chip technology,” Visa President Ryan McInerney said in the statement.
EMV is named for developers of the technology, EuroPay International, MasterCard and Visa.
Bank of America, Capital One Financial Corp., JPMorgan Chase & Co., Citigroup Inc., Discover Financial Services, Kroger Co. and the National Association of Federal Credit Unions are among companies comprising the task force, which was created in March.
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