On Smart Card Chips, Visa Changes Course
After years of steadily holding back support for embedding smart chips into U.S. issued cards, the largest card brand has announced it will now back the use of smart card technology in the U.S.
The use of chip-embedded cards has become the norm overseas and has significantly reduced fraud at point of sale terminals there.
This provision kicks in Oct. 1, 2015 for general merchants and October 1, 2017 for gas stations.
Eduardo Perez, Visa's global head of data security, said the company had decided to start backing embedded chip cards, in part, after the Durbin amendment’s passage had settled the regulatory picture.