Visa and MasterCard Take a Stand Against Hackers
Visa (NYSE:V) and MasterCard (NYSE:MA) are now teaming up with retailers in a new cross-industry effort to improve credit card security. Several recent high-profile security breaches that resulted in consumer credit card information becoming vulnerable to fraud caused the credit card companies to decide to focus on creating better payment security.
According to a press release, the companies will at first focus on building more widespread adoption of EMV chip technology. EMV stands for Europay, MasterCard, and Visa, and was developed to create a global standard of chip-card technology. “Chip technology generates a unique code for every transaction, making it nearly impossible for criminals to use the card for counterfeit fraud,” the companies said.
Other plans for the group include exploring technologies that will help secure online transactions the way EMV helps secure physical ones. Tokenization and point-to-point encryption are being considered as ways to protect online and mobile credit card transactions. Finally, the group would like to stay one step ahead of the technological curve concerning security by “developing an actionable roadmap for securing the future across all segments of the payments industry.”
“One of the critical roles we play is to protect consumers and businesses against criminals and fraudsters,” said Chris McWilton, president of MasterCard’s North American Markets. “Only through industry collaboration and cooperation will we address the real and immediate issue of security and maintain consumer confidence and trust. EMV will be the next step in these efforts, alongside enhanced security solutions for online and mobile channels.”