Courtesy of Victor Habbick /

Courtesy of Victor Habbick /

The Newest European Import Is The Chip And Pin Card.

Discussions about credit and debit card security were heating up even before retailers experienced data breaches last winter. Needless to say, after the breaches and a wealth of media reports touting the fact that Europe, Canada, and most of the rest of the world already have more secure payment systems than the one we use in the United States, interest in replacing our current system increased.

Eighty countries around the world are currently implementing Europay, MasterCard and Visa, or EMV technology. In some places, EMV compliance is further along than it is in others. For instance, about 95 percent of point-of-sale credit card machines (aka terminals) in Europe are EMV compliant; 79 percent of terminals in Canada, Latin America, and the Caribbean; 77 percent of terminals in Africa and the Middle East; and 51 percent of terminals in the Asia Pacific region.

Why is a card with a chip and pin better than a card with a magnetic stripe and a signature? One of the primary reasons, according to Forbes, is improved security:

“Most credit cards in the United States operate with a simple magnetic stripe that can be captured and copied relatively easily. Much of the rest of the world uses a small chip on the credit card to validate with a transaction. The chip employs cryptography and a range of other security features and measures that create a multi-layered defense against card fraud. When combined with a Personal Identification Number or PIN code (the sort used on ATM cards), it substantially raises security. Even with just a signature it makes a marked improvement over a simple magnetic stripe.”

The United States, until recently, was the last major market holdout. However, according to current estimates, 60 percent of merchants will have EMV compliant devices by 2015. Check your mail. A new card may be on its way soon.

Weekly Focus – Think About It

“Kindness is the language which the deaf can hear and the blind can see.”

Mark Twain, American writer and humorist