Consumers in the United States are receiving new credit cards and retailers must upgrade their payment terminals. Cybersecurity experts warn that since credit card companies will rely on signatures while PIN numbers won't be required - due to higher cost and increased complexity - stolen and lost cards could still be vulnerable.
Chip-enabled cards will help lower fraud in retail stores, but online fraud is likely to increase, which has happened in other countries that adopted similar technology years ago. There will be a learning process for US consumers and retailers unfamiliar with Chip-and-PIN - but it should help usher in change, even if security concerns remain.
"A payment standard that is accepted globally will substantially reduce transaction costs for them," said Rick Dakin, CEO of the Coalfire cybersecurity risk and compliance firm, in a statement to Reuters. "Also they have already done the heavy lifting for EMV so they are ready and pushing for it."