The following is an excerpt from Laura Hautala | September 30, 2015 | cnet.com |
US consumers are about to get a new defense against cybercrime. The armor will take the form of credit and debit cards with a built-in chip, which retailers must be able to read as of Thursday.
Short for EuroPay, MasterCard and Visa, EMV chips create a one-time-use code needed for each purchase, which makes stolen card numbers less valuable on the black market. Consumers may see slightly longer transaction times as in-store readers run the EMV cards, assuming merchants have set up the new payment terminals in time.
Industry watchers don't expect every merchant to meet Thursday's deadline, which was set last year by MasterCard, Visa, Discover and American Express. Retailers do have an incentive to act quickly, though. Stores that don't have EMV-reading terminals will need to make good on in-store purchases made with counterfeit cards. ATMs and gas pumps will face the same liabilities in 2017.
The card companies wrote that rule after cybercriminals stole about 40 million credit and debit card numbers from the payment system of retailer Target during the 2013 holiday-shopping season. Currently, the banks that issue cards are on the hook for fraudulent charges.
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