WASHINGTON (12/17/14)--A new paper from the Payments Security Task Force (PST) has outlined a strategic road map for increased payments system security, designed to keep consumers' personal information from being compromised.
Eric Richard, general counsel and executive vice president for regulatory affairs for the Credit Union National Association, serves as CUNA's representative on the task force, which also includes senior staff from Visa, MasterCard, financial institutions and merchants.
"We are encouraged by collaborative efforts on this strategic road map issued by the Payment Security Task Force. The joint paper provides background and key recommendations for merchants, acquirers and other stakeholders to take steps to improve payments security," Richard said.
CUNA also believes that a layered approach to improving payments security should consist of chip cards, encryption and tokenization for all entities.
The elements of such an approach are:
The paper also examines the future landscape of updated chip technologies. Previously, the PST reported that half of all debit and credit cards in the United States will be chip-enabled by the end of 2015, and that a survey showed approximately 47% of terminals will be enabled to accept chip cards.
"This is a clear indicator that merchants are investing in technology to accept chip cards by the end of 2015," the paper reads. "The size of the U.S. market, however, suggests that at least three to five years will be needed to reach full maturity of chip card acceptance."
In October 2015, the largest payment networks will shift liability for those who use chip technology in point-of-sale terminals. Once the shifts take place, if counterfeit fraud occurs with a chip-capable card and the merchant is not contact chip-card capable, the acquirer will be held liable for the transaction.