Industry News

02/11/2011 - The concept of "wave and pay" or "tap and go" will soon be a common part of the payment processing lexicon, as card issuers begin implementing EMV, a new data storage and communication technology.

According to ATM Marketplace, no deadline has been set that would require companies to create all credit cards with an EMV chip embedded, but the innovation is inevitably coming, whether banks, card issuers and merchants are prepared or not. Currently, the technology is the norm in Europe, Canada has recently jumped on board and it is likely that the American market is not far behind.

Countries that have consumers using EMV-enabled cards have found that these embedded chips help prevent more credit card fraud than magnetic stripes.

"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," Ellen Richey, chief enterprise risk officer at Visa Inc., told the news source.

Many credit card issuers have already started producing EMV-enabled cards, but American consumers may not know that their wallets are capable of this quick payment method because very few opportunities to fully utilize this technology exist in the country, Fox Business reports.

The opposite is true in Europe and other regions, where American credit card holders would have trouble finding point-of-sale terminals that could handle swipe-only plastic payments.

In addition to investing in the latest technological advancements, some companies are also unveiling new credit card products for consumers. Recently, U.S. Bank announced the launch of its Convenient Cash Card through Visa. This prepaid card is reloadable, like many other prepaid payment methods, but customers can also withdraw money from this card at any U.S. Bank ATM without a fee.

"We continue to lead the payments industry with new and innovative products, like the Convenient Cash Card, that serve a wider segment of the population and also provide alternative products to existing customers," explained Kevin Morrison, senior vice president of U.S. Bank Retail Payments Solutions.

The Convenient Cash Card is specifically designed to give consumers the convenience of credit card payments with the ability to budget and avoid overspending. Those who use the card will have access to common bank conveniences such as mail notifications, text alerts and online statements.