BANKERS WANT STORES TO ADOPT NEW CREDIT CARD SECURITY TECH

cardreader

Have you run into those new chip and PIN card reader things where you have to lock in the card and enter a personal identification number that take a little more time in the checkout line than the old card swipe? The American Bankers Association’s Card Policy Council wants you to have that experience more often because they say it would help keep the hackers and card skimmers at bay. 

Card-issuing banks and retailers are sometimes at odds over whom should be liable if there are security breaches, such as those at Target Inc. and Home Depot Inc. Bankers point out that they have to follow certain data security rules that others, such as retailers, don’t.

The banking group says retailers need to keep up with the times and take the necessary steps to protect card data. “Consumers deserve strong, consistent safeguards to stop the loss of private information to criminals.  As retailers store increasingly sensitive consumer data, they should be held to the same standards as credit card issuers,” Jess Sharp, executive director of the Card Policy Council, said.

The bankers say they are engaged from their end of things in adopting new robust data security technology through issuing hundreds of millions of chip and PIN cards and retailers should install readers for those new cards.

 

“Hackers are hitting the weak points in the transaction chain, which are often exempt from the robust safeguards that banks have supported for decades,” said Sharp.

The bankers urged Congress to pass the Data Security Act (S. 961/H.R. 2205 ), which they say will “prevent and mitigate consumer data breaches in largely unregulated sectors like retail.”

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