Visa, MasterCard, American Express and others have replaced magnetic stripe cards in the United States with chip technology versions (EMV). The change is being touted as the dawn of a new era in credit card fraud prevention. However, EMV security does not protect against first-person fraud, lost or stolen cards or online and phone fraudulent transactions.
There is no mistaking that EMV is a positive step. Yes, under the new rules, retailers will be liable for fraudulent card purchases, but given the credit limits on most cards and the need for a fraudster to be physically present, the actual exposure is going to be so small that it may not justify the investment in new point-of-sale technology. In this article, we discuss what EMV technology means for credit card security and where security gaps still linger.