The Association of Financial Professionals (AFP) – which represents top finance executives around the world – yesterday released the results of a J.P. Morgan-supported survey in which respondents expressed overwhelming optimism about the potential for next-generation payment cards to reduce fraud. Of the different types of chip-based "smart" cards available, 61 percent of financial professionals reported that cards with personal identification number (PIN) verification would be more effective than those that verify purchases by signature. A mere seven percent put their support behind "chip-and-signature" cards. This tracks with earlier polling which indicates significant support for "chip-and-PIN" cards among American consumers.
"We are pleased, but not at all surprised, with the results of AFP's survey," said Sandy Kennedy, president of the Retail Industry Leaders Association (RILA). "Retailers have known for a long time that the future of payment card security belongs to 'chip-and-PIN', and we are readying our stores for this transition. Now we see that a strong majority of professionals in the finance industry agree. The American people are ready for 'chip-and-PIN' as well – 82 percent of cardholders expressed support for these cards in a separate survey conducted last November. Big banks and card companies are the only ones blocking 'chip-and-PIN's' rollout in the United States, offering excuse after excuse. As their colleagues in the financial world declare their support for these safer cards, we hope they see that they have nothing to gain – and plenty of customers to lose – by standing in the way of 'chip-and-PIN.'"
Finance Execs See Chip Cards As Anti-Fraud Boon
Vast Majority Say The Soon-Forthcoming Cards Will Reduce Point-Of-Sale Fraud.
March 25, 2015
With issuers and retailers preparing to switch to anti-fraud, chip-based credit cards in October, 92% of finance professionals believe the technology will be effective in preventing point-of-sale fraud, according to a new survey.
Europay, MasterCard, and Visa — known collectively as EMV — set the October deadline to encourage U.S. issuers and merchants to migrate from magnetic stripe cards to the EMV chip-card technology. The new chip cards can be authenticated with a PIN number or a signature.
In its 2015 Payments Fraud and Control Survey, the Association for Finance Professionals found that 61% of respondents believe chip-and-PIN will be the most effective authentication method for mitigating fraud. Only 7% saw chip-and-signature as most effective.
The survey "should serve as a call to action for card vendors," Jim Kaitz, president and CEO of AFP, said in a news release. "Financial professionals clearly prefer chip-and-PIN over chip-and-signature in the fight against fraud, and they overwhelmingly believe in EMV."
For the full article at CFO.com, click here
RILA is the trade association of the world's largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.