Visa has just released numbers on their push to move forward with EMV before the liability shift in 2015. Since 2011, Visa has issued more than 2.5 million EMV “smart cards” throughout the US.
The countdown has begun for American banks and credit unions across the country to make the move to EMV chip and pin technology for their payment cards. Visa and MasterCard have set forth a deadline of 2015 for all payment cards to have EMV technology or face a liability shift. This means banks or credit unions who do not issue the new cards will incur all fraud costs after 2015, if they are not EMV ready.
EMV is the mainstay across the world. The US is one of the last hold outs, still relying on the antiquated “mag stripe” technology introduced more than 40 years ago. EMV cards have been seen to dramatically decrease card skimming and theft around the world. Each transaction is encoded and encrypted with unique information; not static as is the case with mag strip technology.
Advancing Transaction Technologies
To learn more about EMV and how you can begin implementation at your financial institution email your shoreline representative at firstname.lastname@example.org
The recent unbelievably fast $45 million heist at ATMs around the country proves yet again that EMV smart chip technology can’t come soon enough to America. This may be the real heads up for any American bank or credit union that is dragging their feet on the conversion to EMV chip technology.
A world-wide gang of criminals hacked processors and stole millions in a few short hours. Sources at the United States Federal Prosecutor’s Office in New York say thousands of thefts were made with fake magnetic stripe cards that were loaded with information from Middle Eastern banks. Many are calling this the largest heist in history, and for sure the biggest fraud case involving bank ATMs.
The gangs hacked into bank databases and eliminated withdrawal limits on debit cards. They placed data onto plastic magnetic stripe cards such as old hotel keys and expired creidt cards. This type of hacking could never occur with the much safer and secure EMV chip and pin technology that is the mainstay around the world. Visa and MasterCard have issued a 2015 deadline for banks and credit unions to make the switch to EMV chip and pin technology or face a liability shift.
To learn more click here for an article from the Washington Post
Credit union executives are urging their fellow credit unions to put an emphasis on the move to EMV for their payment cards.
At the 2013 Meeting of Card Services for Credit Unions in St. Petersburg, Florida, Robert Hackney, CEO, reminded credit unions that the 2015 deadline for the transition is looming in the near future … only 30 months away
Visa and MasterCard have both issued deadlines for banks and credit unions to make the switch to EMV chip and pin technology or face a liability shift.
Executives urge credit unions to appoint a credit union staff person to take on the EMV project as soon as possible.
Shoreline will be holding more EMV webinars in the coming months to help credit unions and banks seamlessly make the transition to EMV. Watch our News for more information!
There’s no doubt that prepaid cards are on the rise. It seems every day another bank or credit union launches a prepaid program.
There are a number of strong reasons why people are adding prepaid cards to their wallet including to reign in overspending, to use instead of cash on a vacation and to teach kids money management with parent supervision.
Read more about prepaid cards and why people are using them in this article by Molly McCluskey at daily finance at aol.com
This past year the United States has seen a marked increase in the fraud rate for both debit and credit cards. In some cases, the card fraud is up 60% from just two years ago. Experts say America’s lag in moving to more secure EMV cards (chip and pin technology) is the main reason the fraud rate has climbed at such a fast rate.
The United States has been one of the last hold outs in utilizing magnetic stripe technology to solely transfer payment information. With a liability shift date instituted by all the major card brands for October 2015, EMV will be coming to the US soon, but will it be soon enough?
Read more here at American Banker
This past week MasterCard announced they are making their proprietary EMV technology available to other networks to help speed up EMV migration across the board.
By making the EMV network technology available, MasterCard feels debit networks, merchants, acquirers, and processors can take advantage of a market-ready solution currently in place rather than waiting for a new solution to be developed.
Read more at Payments.com
Teen pop sensation Justin Bieber is the latest celebrity to jump into the prepaid market. Bieber is endorsing a card aimed specifically at teenagers – Billmyparents. Forbes reports that Bieber is set to use his social media network of more than 45 million Facebook fans and 30 million Twitter followers to promote his Prepaid cards. Read more from Forbes here …
The prepaid market is one of the fastest growing segments in the financial industry. In 2012, the use of prepaid cards increased by 22.4%.
Why are consumers turning to prepaid?
- Budgeting assistance
- Overdraft control
- No ties to a financial institution
- Perception of lower fees associated with prepaid
To learn more about the value of a prepaid program, call you shoreline rep or email us at email@example.com
As we’ve talked about before in Shoreline news, one of the riskiest things a person can do with their debit card is to post the image on Facebook or Twitter.
“We are thrilled that our cardholders love the personalized cards that our MakeitMine program offers,” says Robyn Brewington, Executive Vice President of Sales and Marketing at Cardiff Holdings, Shoreline’s holding company. “But, we think it’s important for financial institutions to make them aware that fraudsters are looking on the web for just this type of situation.
Click here to learn more about how the rash of problems abroad with debit card postings on Facebook …
If you have posted your card on Facebook or Twitter, call your bank or credit union as soon as possible for a new replacement card.
Shoreline’s MakeItMine product, where cardholder can put their own special image on their debit card, is very popular with credit unions and banks around the country. It can increase customer usage and activations, but cardholder must be warned of the danger of posting their “personal photo” card online.
To learn more about MakeitMine card personalization, visit Shoreline’s Make it Mine web page.
Posted in Card Personalization, Industry News, Shoreline News
Tagged card customization, card design, credit card fraud, debit card fraud, debit card personalization, debit card programs, facebook, makeitmine, photo cards, twitter
While the ability to detect and stop identity theft is speeding up, according to Javelin Strategy & Research, more than 8.1 million adults were victims in 2010. And although this is three million fewer victims than the prior year, the consumer out-of-pocket costs rose significantly.
Read more here …
Shoreline Business Solutions and our parent company Cardiff Holdings would like to thank everyone who attended our three EMV - R U Ready Webinars. More than 250 people attended the informational webinars on September 30th, October 5th and November 1st.
As the 2015 liability shift gets closer, financial institutions will have to make plans for the integration to EMV cards.