Visa, MasterCard forming group to advance card security

The continuing saga of the Target payment breach has many in the payments industry afraid that security in the sector still has a long way to go.

According to an article from Reuters, major card providers Visa and MasterCard have announced that they have launched a new cross-industry group with the goal of improving security for card transactions. It will also start pushing U.S. retailers and banks to meet the 2015 deadlines to adopt the EMV technology that will help make payments safer.

The group will consist of banks, credit unions, retailers and trade associations. While the initial focus will be on the chip and PIN technology that has already taken hold in several countries, there will be longer term goals of secure credit card processing.

"The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security," Visa President Ryan McInerney said in the statement announcing the group.

Not everyone is ready to jump onboard the new group however. The National Retail Federation, the world's largest retail trade association, said it would not be joining because it has no plans to immediately implement the PIN option. Mallory Duncan, the NRF's general counsel said that the group is: "not serious about reducing fraud, unless they put a pin on."

When it comes to POS card processing, the landscape is going to change in the next year. Businesses need to be aware of this or should partner with a credit card payment processor to ensure they remain compliant with all changes.

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