From The Kansas City Business Journal
by James Dornbrook
Forget the expiration date. The credit and debit cards Americans have been carrying around in their wallets are woefully out of date- relying on technology that dates back to World War II.
Credit card fraud in the U.S. was responsible for perhaps $10 billion in losses last year, with a third of them involving easily made counterfeit cards.
Credit card companies are replacing older credit cards with new EMVcards. The cards have an embedded computer chips that generate a random number for each purchase, making it exponentially more difficult and more expensive to counter cards.
From a business practices standpoint, do you want to be known as the business that is susceptible to fraud?" Polsinelli's Jay Heidrick said. "When your company gets hit, its going to make news, and word is going to spread."
"Not only is it a major problem from a public relations and regulation standpoint, but your credit card processor may decide you are now an unsafe risk and may drop you. If your processor drops you, now you can't conduct credit card transactions."
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