U.S. financial institutions increasing EMV adoption
The EMV standard has become fairly dominant in Europe and parts of the Asia-Pacific region. However, various conditions have prevented the chip-and-PIN-based credit and debit cards from spreading to the United States. That trend is slowly changing, however, as U.S. financial institutions are beginning to adopt EMV card solutions.
Recently, Cardiff Holdings, one of the largest private card personalization companies in the United States, announced that it applied for EMV certification. The move comes shortly after similar programs by other financial institutions and represents a shift toward embracing EMV in the United States. Cardiff Holdings expects to be fully compliant with the EMV standard before the end of 2011.
EMV cards are widely regarded as the most secure form of card-based payment and are quickly becoming a standard form in global markets. Cardiff Holdings wants to bring that same level of safety and security to U.S. consumers and businesses by giving them access to the advanced credit and debit card standard.
Paul Polus, CEO of Cardiff Holdings, said the company is moving to the EMV standard to supports its overall mission to make sure its customers always have the opportunity to use the most advanced technology's available. Furthermore, the company believes EMV adoption is inevitable in the country, he said.
Cardiff Holdings has identified two primary reasons to hasten EMV adoption in the United States - travelers and fraud. U.S. travelers are facing a growing challenge when they travel because ATMs and point-of-sale devices in other countries are often unable to read magnetic stripe cards. Many other nations have deployed infrastructure to support EMV technology. Furthermore, EMV has become so effective at fighting fraud that financial criminals are beginning to specifically target nations that do not use EMV cards when they plan fraud attacks.
"When we heard that many of our clients’ customers were experiencing problems with their magnetic stripe cards when traveling abroad, we knew right away we needed to assist them with this problem," said Richard Anderson, president and CEO of Shoreline, a Cardiff Holdings Company.
A recent release for the Smart Card Alliance's annual conference highlights the importance of the United States' transition to the EMV standard. According to the organization this year's conference will be exciting because 2011 will be marked by the United States' move to join Canada and Latin America as recent adopters for smart card technology.