Visa Using EMV To Rig The Mobile Game
Written by Evan SchumanVisa's new approach will also likely spell the end—within about five-to-seven years—of mag-stripe cards in the U.S., a move that many payment security advocates say is years overdue. To make all of this happen, Visa is bringing its global EMV incentive program—officially the Technology Innovation Program (TIP)—to the States, along with its PCI-relaxation components. (PCI relaxation? There are two words I never expected to see used consecutively.) This means chains that start using specific EMV chip-enabled terminals will be permitted to forego the annual compliance validation nightmare. But Visa has added such a lengthy list of qualifiers and exceptions to the program—along with the practical fact that some chains will opt to do the assessments anyway, for pure security purposes—that it's not clear how many chains will find that incentive compelling enough to do massive hardware swaps.
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2 Comments | Read Visa Using EMV To Rig The Mobile Game
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August 11th, 2011 at 12:13 am
For me, at least, the bigger question is how this will impact on-line merchants. Will we see a significant increase in CNP fraud like we did across the pond when EMV became ubiquitous over there? I suspect that we will, at least until the mag strip goes away, but I’d like to hear what the real experts think.
August 11th, 2011 at 12:19 pm
CNP fraud is being addressed with EMV cards and mobile payments, although in slightly different ways. Multi-channel authentication using the EMV chip as the generator of a one time password that becomes part of the online check out transaction is being done today in the UK and other EMV countries. The card “presented” transaction involves a personal reader that generates a dynamic code to accompany the cardholder data. The EMV chip generates the encrypted code. An NFC mobile phone can create the same code without the extra reader so both EMV form factors can be applied to lower CNP fraud.