MasterCard will soon require member bank ATMs to accept EMV cards, according to financial analysts.
Institutions are looking at EMV as a way to reduce fraud as new federal regulations have cut their revenue once used to absorb fraud costs, according to CUTimes.com.
“That is very aggressive, a blink of an eye in banking,” Julie Conroy McNelly, an analyst from the Aite Group, said, CUTimes.com reports. “Reduced revenues in wake of [the] Durbin [amendment] will drive the U.S. to EMV. The financial institutions do not have the revenues to absorb fraud losses.”
EMV technology is becoming more and more popular with MasterCard working to take a market-leading position, McNelly said.
Visa recently announced that it would be backing the use of chip-embedded smart card technology in the United States as well, according to CUTimes.com.
“Dynamic authentication is the key to securing payments into the future,” Ellen Richey, Visa’s chief enterprise risk officer, said, according to ABABankingJournal.com. “Adding dynamic elements to transactions makes account data less attractive to steal and takes more merchant systems out of harm’s way, shrinking the battlefield against criminals. The migration to chip technology will be an important security layer and a critical step in a comprehensive strategy to use dynamic authentication across all markets and all channels.”