The debit and credit cards are changing their ways so rapidly that it is looking like Americans will start using a brand new method of payment technology when making a purchase in the near future.
MasterCard has recently unfolded its new happening which it calls a new roadmap to towards EMV standards. The cards using this EMV or chip and pin technology are being used in many countries around the world and US is the only major country which still uses the old method of magnetic strip on the back of the card for gaining users payment information in the retail stores.
This plan came from MasterCard with the similar revelation from Visa, the world’s largest payment processing company and MasterCard’s rival. The plan will help the users to use new cards rather than the old striped ones, which have a chip inside the cards.
There are some banks who issue the cards with microchips even now, but the users of these cards may get some problem of acceptance by many retail stores in the US. Mostly, the EMV cards are issued to consumers with both chips and stripe for both international travelling and American use.
MasterCard detailed that it has been working with companies to make sure that the infrastructure will be ready for EMV acceptance by the start of April 2013. MasterCard also said that they want the system to be ready for acceptance in the ATM’s, point of scale acceptance, online and mobile commerce.
The payment processor has already helped develop EMV systems in more than 130 nations around the globe and also issued half of 1.2 billion cards in the whole world at the end of 2011 with MasterCard insignia or its co-brand Maestro.
EMV cards are quite handy to use. They can be used by the consumer by waving the card over a point of sale terminal which reads the microchip embedded on the card. Than a PIN code is required to enter to confirm the purchase which is why it is called chip and pin.
As it uses the chip services for identification first, it takes a PIN code to gain access to the purchases. This is a double screening method which is considered much safer than the older magnetic striped method which doesn’t require a PIN code to gain access to the card holder’s information.
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