Amy Macchiaverna
IS 352.02
Professor Harris
April 7th,
2014
Blog #2
Bank of America Merrill Expands EMV
Technology in Business Card Portfolio
is an article about expanding chip and PIN technology within all credit card
products. Companies are still exploring new options in providing more safety
while making credit card purchases, especially while traveling. Many companies,
specifically Bank of America Merrill Lynch, are focusing on implementing EMV
technologies in their products. EMV, which stands for EuroPay, MasterCard, and
Visa, uses an embedded microchip ad a personal identification number (PIN) to
validate the card, the consumer, and the payment transaction instead of a
cardholder’s signature. This technology provides customers with greater control
over fraud and improved security and acceptance all over the world.
“We’re
committed to providing the most technologically advanced solutions, which our
clients increasingly need to improve efficiencies while adding another layer of
security,” said Kevin Phalen, head of Global Card and Comprehensive Payables in
Global Transaction Services (GTS). Large companies are looking to invest in
these high security credit cards so their employees and clients can travel the
world safely, knowing their cards will be accepted at any point of exchange. The
bank began issuing these chip-enabled cards in 2013 and has now sold more than
100,000 across the portfolio in the United States alone. The number is
predicted to increase as credit cards are issued to middle market and large
corporate clients.
Many
large corporations have had trouble deciding whether or not to implement this
new technology for a long time. It is a very costly project to obtain the
proper equipment and technology for chip-enabled cards. Companies who have had
identity theft issues in the past are especially curious about EMV
technologies. After Target’s databases were hacked last year, they recently
decided to equip all stores with their own “REDcards.” By 2015, all 1,800 of
Target’s U.S. stores will be equipped with store card readers with chip-enabled
smart-card technology. This plan is a $100 million effort to hopefully prevent their
databases from being hacked in the future.
Other
large corporations such as Michael Kors, Neiman Marcus, and White Lodging have
all produced enough reasons to implement EMV technology into their stores and
databases, as they have all recently experienced hackers. By making this
technology more readily available, people will be able to use chip-enabled
cards all over the world. This will make it much more difficult to hack into
companies databases and make people much more comfortable spending their money
at large corporations. Target, Michael Kors and Neiman Marcus all suffered huge
losses due to the corruption of their databases. If they can find the money to
implement chip-enabled technology throughout their stores, there will be much
more incentive for customers to go back.
EMV
technology is the future of our economy. Hackers are adjusting to the advances
in technology, but the technology is not advancing well enough to keep the
hackers away. If the chip-enabled cards start being used throughout the world,
it will become close to impossible for hackers to steal people’s personal
information from companies. And in response to that, companies will not have to
suffer the major losses coupled with theft and fraud.
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