Visa to drop signatures on credit card purchases by 2013

Powered by SC Magazine
 

Current technology is too "easy" to skim.

Visa today announced it would mandate a move to chip and PIN technology for all Australian Visa cardholders over the next four years, with signatures no longer accepted at the check-out by 2013.

The overhaul would see more than 14 million Visa cards upgraded by April 1, 2013.

According to Visa about five million (37 percent) of Australian-issued cards are already embedded with the chips.

Visa will also require issuers (i.e. banks) to ensure cardholders are enrolled to have a Verified by Visa password for doing online banking transactions by April 1, 2012.

Chris Clark, general manager for Visa Australia and New Zealand said Visa would ensure all cardholders have a Verified by Visa password.

"We're saying all cardholders have to have a password," Clark said. "They must be enrolled.

"If they don't get enrolled, the liability for a fraudulent transaction falls onto them," Clark said.

But the Verified by Visa password would not be mandatory for online merchants, such as eBay, to implement. Visa's policy would still allow for the three digit CVV2 "security code" to stay in place.

Current technology "easy" to skim

Clark said that current magnetic cards were "easy" to skim and that chip technology would prevent skimmers from duplicating cards.

He said credit card data has usually been contained on the magnetic strip of the card.  "And it's that stripe which is really, really easy - well... not easy - but that stripe can be compromised by card skimming".

Clark said chip technology would not be as easy to duplicate.

"To date, after I think over 20 years, the chips have not been able to be corrupted because they store what's called dynamic data," Clark said. "So every time you do a transaction, that chip interacts with a special terminal and it creates a dynamic authentication code whereas with a traditional or magnetic stripe transaction, where it's swiped, it's just the same old static authentication".

Clark also said Visa was looking at more ways to secure credit cards.

He said this included making dynamic online passwords, having an SMS every time you wanted to do an online transaction and having a type of token authentication or a card that plugged into your PC.


Visa to drop signatures on credit card purchases by 2013
 
 
 
Top Stories
Westpac committed to core banking plan
[Blog post] Now with leadership.
 
The True Cost of BYOD - 2014 survey
Twelve months on from our first study, is BYOD a better proposition?
 
Photos: Unboxing the Magnus supercomputer
Pawsey's biggest beast slots into place.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
What is delaying adoption of public cloud in your organisation?







   |   View results
Lock-in concerns
  29%
 
Application integration concerns
  3%
 
Security and compliance concerns
  27%
 
Unreliable network infrastructure
  9%
 
Data sovereignty concerns
  22%
 
Lack of stakeholder support
  3%
 
Protecting on-premise IT jobs
  4%
 
Difficulty transitioning CapEx budget into OpEx
  3%
TOTAL VOTES: 1135

Vote