Consumers Want Their Payment Cards To Be More Secure And They May Be Getting Their Wish

Following the massive Target data breach that affected as many as 110 million of the retailer’s customers,payment card security garnered national media attention and got the attention of consumers.

In fact, a majority of consumers now say they would switch accounts for one with better payments security features, according to a survey from TSYS, compiled in the BI Intelligence chart at the right.

There may be a positive outcome of the breach for the card networks, then.

They’re in the midst of pushing the implementation of a new security standard for payment cards called EMV, chip cards with an embedded microprocessor that makes it difficult for thieves to steal the data and make fraudulent transactions. The breach could create enough momentum to get the payments industry to adopt the new standard.

In a recent report from BI Intelligence, we take a close look at the EMV standard, whether it can solve the huge fraud problem in the U.S. and if the gains outweigh the hefty price tag.

Moving to the EMV standard is easier said than done. It requires most of the players in the payments value chain to upgrade their systems to processes EMV transactions. In addition, payment cards must be reissued to consumers, and merchants need to buy new payment terminals that can accept chip cards. All this could cost upwards of $US11 billion.

Here are some of the key points from the report:

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In full, the report:

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