Payments Innovation

Payments Innovation


To stay one step ahead of those responsible for massive data breaches, the latest technology needs to be utilized to protect consumer data. Many of these technologies, such as encryption, biometrics, and tokenization, are ready and available to be deployed.

PIN technology is one of the two primary systems used for digital transactions. Unfortunately, it is over 50 years old. Additionally, modern fraud mostly occurs online, meaning that outdated technology like PIN is useless in those circumstances. If we really want to get serious about stopping data breaches, we need to focus efforts on 21st century technologies that will stop 21st century data breaches.

Many merchants in the United States have just transitioned to EMV-enabled card readers using chip-and-signature verification. These chip readers offer increased security and overall benefits to consumers, financial institutions, and businesses by generating a unique one-time code to authenticate credit and debit card transactions. Due to the deployment of this technology in recent years, the cost has dropped significantly, and merchants are responsible for less than half of those costs. Moreover, merchants who have implemented EMV readers at the point of sale are not liable for fraud associated with counterfeit cards or lost and stolen cards.

This trend is certainly moving our payments systems in the right direction, but we must continue to do more. The EPC believes in continued investments in new payment technologies, and that stakeholders must work together towards tomorrow’s solutions. Technology always outpaces policy decisions, but for consumers to be protected, all stakeholders need to ensure they are us-ing the best mechanisms available.