Chase to replace all credit and debit cards with chip-enabled cards
Chase is planning to replace more than 70% of its credit and debit cards with more secure chip-based cards by the end of 2015.
The company said more than 80% of total Chase cardholders’ spending will be on chip-enabled cards and it is also upgrading its ATMs to accept chip cards.
Chase will launch the chip technology to its consumer and business customers including chip credit, debit and Chase Liquid cards.
In addition, it will also provide terminal that enable businesses to accept chip cards plus mobile wallets, contactless and the traditional swipe at the point-of-sale.
A survey conducted by Chase revealed that 80% of consumers were concerned about the security of debit and credit card transactions, while 65% were not aware of EMV chip technology.
According to the survey, three in four (76%) think that the technology will allow small businesses by preventing fraud.
In the next 12 months, customers without a Chase chip debit or Liquid card will receive new one in the mail.
The new cards feature wider acceptance and an embedded chip that adds extra layer of security during a chip transaction by producing a single-use code to validate the transaction.
Also, Chase has been providing point-of-sale terminals that allow businesses to securely accept chip cards and other forms of payment.
The company’s Chase Mobile Checkout will allow businesses to accept EMV chip credit and signature debit card payments by using an encrypted card reader on their smartphone. It has also launched GoChipCard.com to provide resources about chip cards for US businesses.
Chase CEO consumer and community banking Gordon Smith said: “Fraud and security threats facing consumer payments today is a complex issue that can’t be solved with any single technology. We’re working to employ a variety of approaches to protect our customers – adopting chip technology is a critical step on this journey.”