One method to possibly increase card payment security on a grand scale has been circulating throughout the industry for years: chip and pin payment. With so much pressure to avoid some of the costly, massive credit card hacks that have occurred in recent years, could retailers and consumers finally embrace the advantages of microchip-based cards?
An article for the Kansas City Star argues that this form of payment is set to take hold, especially with the Target breach still fresh in consumer minds. The time-tested security of the chip-card abroad has gained it approval among data security specialists in the United States.
Even without the PIN, which gives the card user an extra level of security, the encryption abilities of chip cards make them more sophisticated than the standard "swipe" styles many are familiar with. One of the sources the site quotes is Brian Krebs, online security expert who explained why there has historically been some resistance to this idea in the United States.
"A lot of retailers are concerned that this is going to be too much of a learning curve for customers," he said. "They're putting this off as long as possible. And none of the banks want to be the hardest card to use in the wallet."
Another possible factor influencing chip card adoption is an upcoming October 1 deadline. According to Catharine Hamm of the Los Angeles Times, that's when card companies and merchants could be held responsible for fraud incidents, so it's in their interest to assuage payment concerns before then.
Updating the credit card processing software that they use will help businesses adapt to new fraud concerns and give customers the better piece of mind that they need to make more confident purchases.