Monday, April 7, 2014

Bank of America Merrill Expands EMV Technology in Business Card Portfolio

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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