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President Signs Executive Order Supporting Migration to EMV
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Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
10/22/2014 | 10:51:27 AM
Re: too little, too late?
Thank you for your comment. Just to be clear, the order doesn't demand that businesses implement EMV. It means that federal agencies that issue payments cards (for instance, prepaid cards for federal benefits) will start replacing their cards with EMV ones. Also, federal agencies that take payments from consumers (like when you pay to get into a national park) are going to replace their card terminals with ones that are EMV compatible. And it also means that the government will also lend support to the players (like the card networks) that are pushing EMV, maybe through helping to coordinate efforts across industries, for example. But the executive order doesn't mean that EMV has to be implemented at every poitn of sale.

NFC/EMV rules are going to have to be updated, as you say. Your points on tokenizationa and encryption at the point of sale are very good. Encryption at the point of sale would be a big help, but merchants just haven't implemented it. EMV by itself though won't solve every problem. These other measures need to be explored as well. The final answer is almost definitely a combination of different solutions, like you say.
DarrenTE
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DarrenTE,
User Rank: Apprentice
10/22/2014 | 10:23:18 AM
Re: too little, too late?
After attending a conference where Visa discussed EMV certification for merchants, I can understand why it's called "chip and pain" in Europe.   However, there was mention of possibly streamlining the merchant EMV certification and activation process.       

What I found interesting was that the President's order mentioned buying EMV-capable equipment, but I don't recall where it said EMV had to be implemented.   "Enhanced security" could be encryption-at swipe (which is easier to implement) or tokens.     I think a combination of features (P2PE with EMV; Tokens with EMV; etc.), will be the best way to reduce fraud and minimize impact from breaches. 

I'm still not sure about NFC with EMV.  I suspect EMVCO will modify NFC/EMV rules in the next 6 months, particularly with Apple Pay pushing NFC.   Most NFC transactions today are in magstripe format.  
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
10/21/2014 | 1:38:49 PM
Re: too little, too late?
I think EMV is going to have to be a stopgap though until mobile payments become popular, which I don't think will happen for years still. I see biometrics and geo-location being used for security once mobile payments take off. But in the mean time the industry needs to better secure card trasnactions until mobile payments adoption becomes much higher. EMV won't do that all by itself. But it is way better than mag stripe.
chemphill
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chemphill,
User Rank: Strategist
10/20/2014 | 3:58:42 PM
Re: too little, too late?
That made me laugh out loud a little.  You're dead on though, Greg!
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
10/20/2014 | 3:46:10 PM
Re: too little, too late?
Well put. It's one thing to be a fast follower (first, wait and see if the technology works and if it does, implement it quickly). But EMV was proven years ago, so this doesn't fall into the fast follower category. This falls into the, "umm, what do we do now? Yeh, EMV, sounds good. Let's do it!" category.

 
chemphill
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chemphill,
User Rank: Strategist
10/20/2014 | 3:40:06 PM
Re: too little, too late?
I completley agree...  hurry up and....crap, we're behind again...
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
10/20/2014 | 2:42:59 PM
Re: too little, too late?
With this move it seems like the US is just playing catch up to the rest of the world. But, chip and pin is not the answer to help protect against breaches. In fact, as others have pointed out, biometric security is already a step ahead of chip and pin. By the time this gets implemented, it will be 3-4 generations behind the technology curve.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
10/20/2014 | 11:37:15 AM
Re: too little, too late?
Thank you for your comment. You are definitely right that EMV wouldn't put an end to the data breaches we're seeing. My understanding though is that it would make the card data useless if it were stolen because EMV cards use a dynamic CVC. In the end this is only one part of a more secure ecosystem for payments. That can't be emphasized enough. Things like new authentication factors and encryption at the point of the sale also need to be implemented. And many smaller-sized players in the ecosystem, like community banks, or small merchants, are going to struglle with the costs of all of this. The whole question of who will pay for all of this is still very much in the air, even with the government putting its support behind EMV.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
10/20/2014 | 11:28:22 AM
Re: It couldn't hurt ...
The President mentioned mobile specifically when he talked about the cyber security summit that the White House will be hosting. Between mobile payments and mobile POS systems, mobile devices are reshaping the payments at a fast pace. The summit seems to be aimed at trying to get ahead of the criminals in terms of leveraging new technology trends like mobile.
chemphill
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chemphill,
User Rank: Strategist
10/20/2014 | 11:18:45 AM
too little, too late?
I'm not sure how I feel about this.  Yes, chip and PIN is a better solution than what we have, but is it the right, long-term strategy?  I say no.  Community banks are already struggling to find revenue sources and this will be, yet another huge expense that we will likley see little to no benefits from.  Besides that, do most people even realize that EMV wouldn't have done a thing for breaches such as JPM?  hmm..
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