Credit card processing is always a risky proposition, as there are countless fraudsters out there in the world threatening to pilfer consumers’ personal information. American Express is trying a new strategy to keep its corporate clients safe from potential data breach – by rolling out Europay, MasterCard and Visa (EMV) cards for certain accounts in 2013, the corporation will include embedded microprocessor chips in its new cards, helping keep consumers’ information more secure.
According to Banktech.com, the microprocessor chips are a more advanced means of data security than the magnetic strips currently seen in most American credit cards today because they store and protect encrypted data on users’ accounts.
Furthermore, AmEx plans to institute a Fraud Liability Shift (FLS) policy in October 2015, transferring fraud liability away from clients who have begun using EMV technology.
According to another Banktech report, adoption of EMV technology has been a slow process, but the benefits are clear for businesses – early adopters will save money and become compliant with government-mandated security standards. Chris Ciabarra, co-founder and chief technological officer of Revel, expects the technology to catch on with more businesses soon.
“The clients who have been hacked the most want to jump at it,” Ciabarra said. “Big retailers know about it, but smaller businesses aren’t as aware.”