March 7 (Bloomberg) -- Visa Inc. and MasterCard Inc., the two biggest payment networks, created a working group with banks and merchants to accelerate the adoption of EMV chip technology to thwart fraud.
The group was established following recent retail data breaches, Purchase, New York-based MasterCard said today in an e-mailed statement. The group, whose other members weren’t identified, will focus on security issues that address in-store and online purchases.
Lenders and merchants are under pressure to convert card security from magnetic strips to microchips after millions of consumer records were breached at retailers including Target Corp. American Express Co., Visa and MasterCard have given most U.S. merchants and issuers until October 2015 to adopt chips -- named EMV for founders EuroPay International, MasterCard and Visa. Those that refuse would assume liability for counterfeit card transactions.
Networks are also pushing retailers to use “tokenization,” where some account information is replaced with a digital ID for online and mobile purchases.
To contact the reporter on this story: Elizabeth Dexheimer in New York at email@example.com
To contact the editors responsible for this story: Peter Eichenbaum at firstname.lastname@example.org Steven Crabill