EMV cards should have PINs

The problem is: Most new credit and debit cards being issued in the United States aren’t enabled with PINs.

Travel-rewards enthusiasts aren’t the only ones who could benefit from a credit card without foreign transaction fees.

Here’s what the Federal Bureau of Investigation said Thursday in a public service announcement under the headline:”New Microchip-Enabled Credit Cards May Still Be Vulnerable to Exploitation by Fraudsters”. However, if preliminary news reports are any indication, there seems to be confusion among consumers about when, where and how to use chip-enabled credit cards. In the USA, banks and retailers had resisted the expense of updating cards and terminals. Because the information on the magnetic strip is easily copied by thieves, credit card companies pushed for the switch.

“Additionally, the data on the magnetic strip of an EMV card can still be stolen if the merchant has not upgraded to an EMV terminal and it becomes infected with data-capturing malware”, the agency noted. The retail industry has been pushing for chip-and-PIN cards, but the card industry maintains chip and signature is adequate for protecting consumers’ data-even though chip-and-PIN has been the standard in Europe for more than 20 years. There are close to 1,000 credit cards offered in the United States.

EMV cards have been used throughout the world for many years.

Many retailers have advocated for banks to issue cards with the full “chip-and-PIN” capabilities that are now familiar overseas – where a customer enters a one-use personal identification number to authenticate the transaction. “Retailers have consistently urged banks and credit unions to ditch the signature and adopt the PIN”, the RILA said in a statement. “It appears that everyone but the card brands and issuers understand the value of PIN authentication”. “It’s the right thing to do, and we hope the banks are listening”, stated Duncan. “Part of it is, I think, just the standard reissue strategy, so if cards are meant to be renewed or expire in this quarter, they might have just said, ‘We will let them reissue when they’re supposed to reissue'”. “They shouldn’t lock the front door but leave the back door wide open”, she says.

SmartMetric, the creator of the world’s first biometric activated EMV chip in a credit/debit card, is now working on delivering a miniature chip card connector for reading its biometric chip card for online computer and or mobile phone buying. When shopping for a new card, it is important to apply for one that meets your financial objectives.

“The PIN version of the chip card adds another level security and certainly has a stronger security protocol to it, but I think given the fact that it has taken us this long to move to chip-and-signature, I would be surprised at how quickly chip-and-PIN follows at least on the credit side”.

“First and foremost, we’re really looking at a change in behavior for consumers in terms of how they would use a card at the checkout register”.

We recommend redeeming points for gift cards instead of cash because ThankYou points are worth more this way. At a minimum, merchants should use secure servers and payment links for all Internet transactions with credit and debit cards, and information should be encrypted, if possible, to avert hackers from compromising card information provided by consumers.