Bank of America Corp is going to adopt EMV Chip Technology for Credit Cards
ank of America, the second-largest U.S. credit-card issuer, is planning to include what are known as EMV chips in many of its consumer credit cards targeted at frequent travelers and high-net-worth customers. The chip-and-PIN card from Bank of America is compliant with EMV (EuroPay Mastercard Visa) standards that have been widely adopted internationally due to rising card fraud and criminal activity. The move came as Visa Inc. and MasterCard Inc., the world’s largest payments networks, are pushing for broader adoption of the technology in the U.S., The involvement of Bank of America could help to further adoption of EMV by prompting more competitors to follow suit.
“The new chip-enabled cards will improve convenience and security of customers’ transactions when traveling abroad,” Susan Faulkner, consumer and small-business-products executive for Bank of America, said in a statement.
U.S. customers often run into problems using their traditional credit cards in foreign countries, where self-service kiosks, such as train-ticket machines, typically can read only chip-based cards. To cut down on customer-service headaches and hang on to their best customers, banks in the U.S. have begun including EMV chips in travel-oriented cards.
Source: The Wall Street Journal