The weaknesses that lead to credit card fraud can be traced to various different possible causes, from users to vendors to banks to the owners of ATMs. In an effort to make the latter group more responsible when it comes to fraud attempts, MasterCard has announced that such owners have until April 19 to change the authentication processes they use from the recognizable swipe-based system to a computer chip, a standard that's supposedly safer and is used in countries all over the world. It is a development that may impact the way cardholders make payment decisions and should not go unnoticed by those monitoring trends in the use of card processing software.
There are some qualifications to be made. As the Wall Street Journal points out, this deadline will apply only to MasterCard debit transactions in the U.S. with cards that were not issued locally – this is scheduled to become the case for users with American-based cards in 2016. Instead of the banks, owners would be expected to be held liable when fraud events occurred. It will reportedly cost hundreds of millions of dollars for owners to make the transition, but this should be weighed against the amount of money lost through the use of falsified cards last year, which numbered more than $400 million.
Opposition has been expressed by groups like the ATM Industry Association and the National ATM Council, some of whom believe that this deadline is too soon for change to take place.
Whatever the ultimate outcome of this new development, or a merchant's personal beliefs, it's important to consider what this will mean to users of credit card POS software. If this method is successful in reducing instances of fraud, customers may be more likely to use their cards when making purchases.