In the aftermath of several data hacks during the holiday season, credit card issuers throughout the United States are rushing to follow in the footsteps of most European countries. In the U.S., credit cards use a magnetic strip which is swiped by a machine; a process which poses a security threat to card owners. However, in the U.K. and Kenya, the microchip, or EMV, cards are equipped with smart chip security and are encrypted.
National Retail Federation general counsel Mallory Duncan explained: “Fraud is rising too quickly not to make progress. Banks are going to do the right thing. The risk has gone up.”
This is already proving true, with Virginia Credit Union announcing that it will be sending out MasterCard credit cards with microchips for increased security.
“Our plans have been underway since last summer to reissue cards,” said Deb Wreden, senior vice president of product and delivery strategy, adding that the decision was not the result of security compromises at retailers.”
Similarly, Bank of America began offering cards as early as 2012 and has recently updated its cards for customers who travel abroad. JP Morgan recently announced that it will be following suit this year.