HW # 8

“MasterCard, Visa Moving U.S. Credit Cards to 'Chip-and-PIN' by 2013”

“MasterCard followed Visa's lead this week, stating that it too intends to move U.S. consumers onto so-called chip-and-PIN technology by April 2013.”This article discusses the wireless technology using chips rather than credit cards. Now customers will be able to use their credit car with a tap on their wireless device. “MasterCard said that it was working with acquirers to move the United States onto the so-called "EMV" standard, ensuring that the payment infrastructure would be in place by the deadline.

In August 2011, Visa also put forward its own EMV timetable with April 2013 as the date by which its U.S. acquirer processors and sub-processor service providers must support merchant transactions using chip-based cards.” This will allow for a more secure credit card processing in and out of the United States. “What does this mean? As any recent traveler to Europe knows, the continent is increasingly moving to the so-called "Chip and PIN" technology, where consumers slide in a credit card with an embedded security chip inside, then enter a 4-digit PIN. Putting U.S. credit-card payment technology onto the same technological footing as other regions will mean fewer headaches for overseas travelers.” Eventually we are heading towards a world where everything will be paid with a chip that is accessed by a touch of a mobile device. This will be an extreme change for the credit card world. “MasterCard, like Visa, also said that it is preparing for a world where consumers will pay in stores, online, and via mobile devices.” "We're moving toward a world beyond plastic, where consumers will shop and pay in a way that best fits their needs and lifestyles with a simple tap, click or touch in-store, online or on a mobile device," said Chris McWilton, president of U.S. markets for MasterCard. "Our roadmap represents a transformational shift in the approach to payments and is not simply about EMV, chip and PIN. We're focused on readying the ecosystem to drive future innovation and provide new consumer experiences to enhance the value of electronic payments."