How to deal with credit card fraud?

Many people may have realized that there is more than the United States this week is about to enable a adopted the "password" chip (chip - and - PIN) technology of the new credit card, and will completely eliminate the traditional signature and magnetic stripe to read the information in the form of credit card report.

In fact, as early as several years ago in Europe and other developed countries has enabled the credit card technology., however, will be put into practical this technology in the United States is facing many practical problems, including important is credit card issuers need to across most of the credit card terminal security updates.

 

Obviously, the password "chip" technology + signature credit card compared with the traditional magnetic stripe CARDS with higher security, because the consumer the authenticity of signatures often ignored by the merchants, and traditional hacker magnetic stripe card is also very easy to copy.In fact, including Europay, mastercard and visa credit card issuers EMV card as early as 1994, tried to establish global standards, and adopted the "secret code" chip card technology is based on this standard, and will replace traditional magnetic stripe for safer built-in chip.At that time, most European countries, including the Netherlands, Canada and Mexico have adopted this standard, but not the United States.

 

Was relatively less in the United States credit card fraud cases and higher merchant credit card terminal upgrade costs was the cause of the United States have been slow to adopt the new standard is the most main reason.As a result, the current most businesses in the United States don't have to read the built-in chip credit card data terminal.People in the United States, and traveling to hit European cities, they may find their own credit card can't buy a ticket in cities such as Paris, because Paris metro ticketing system with such traditional magnetic stripe CARDS are not compatible.

 

And at the time, in the territory of promoting this new credit card technology there are a lot of uncertain factors.Including most of the merchants have to install the new credit card terminals, credit card issuers, Banks need to provide the customers with the new card as soon as possible.And, because most of the "chip and pin technology CARDS still retained the magnetic stripe area (in order to prevent the chip data read error and preset second plan), and this transformation process may last longer than most people think.Population is far smaller than the Netherlands, for example, spent two years to complete the shift.

 

 Luck is, this is about to usher in change.At present, including Visa and mastercard which both credit card issuers have expressed their support for this shift, and will take effect in October 2015 a program called "transfer" (liability shift) policy, if one party confronted with credit card fraud, by using traditional credit card use will bear the main responsibility for this.In other words, this policy will not push forward the built-in chip technology of credit card issuers and don't accept this form of credit card merchant punitive measures.

Mastercard and target CFO John MuLiGan (John Mulligan) in the company credit card data is black event hearings are talked about the topic of "chip and pin" technology.They said that consumers in the future will adopt the way of input PIN to complete the transaction to replace the existing way of signature confirmation.