Menu
Banking Exchange Home
Menu

Joint Visa, MasterCard effort to focus on security

Group’s priorities begin with EMV, tokenization, encryption

Joint Visa, MasterCard effort to focus on security

MasterCard and Visa formed a new cross-industry group focused on enhancing payment system security to keep pace with the expectations of consumers, retailers, and financial institutions.

The group will initially focus on the adoption of EMV chip technology in the United States, in addition to addressing other security-related topics, including tokenization, point-to-point encryption, and broader needs of the region.

“One of the critical roles we play is to protect consumers and businesses against criminals and fraudsters,” says Chris McWilton, president of North American Markets, MasterCard. “Only through industry collaboration and cooperation will we address the real and immediate issue of security and maintain consumer confidence and trust. EMV will be the next step in these efforts, alongside enhanced security solutions for online and mobile channels.”

This new group will include a diverse group of participants in the payments systems including banks of all sizes, credit unions, acquirers, retailers, point-of-sale device manufacturers, and industry trade groups. The formation of the group is a public recognition of the importance of all parties to work together and will ensure all voices can contribute to the strategic direction of payment security.

“The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security,” says Ryan McInerney, president, Visa Inc. “As we have long said, no one industry or technology can solve the issue of payment system fraud on its own. These conversations will serve as a useful forum to share ideas, break down barriers, and spur the adoption of next-generation security solutions for the benefit of all.”

With a priority on delivering meaningful solutions, the group will focus on:

• Advancing the migration to EMV in the United States. Chip technology generates a unique code for every transaction, making it nearly impossible for criminals to use the card for counterfeit fraud.

• Promoting additional security solutions like tokenization and point to point encryption. While EMV addresses the physical point of sale, the need to protect mobile and online transactions is critical. In tokenization, the traditional account number will be replaced with a unique digital payment code, providing an additional layer of security.

• Developing an actionable roadmap for securing the future across all segments of the payments industry.

MasterCard and Visa expect this group will complement and engage with other efforts across the industry, including proprietary risk councils, EMV task forces, and the standard management bodies.

John Ginovsky

John Ginovsky is a contributing editor of Banking Exchange and editor of the publication’s Tech Exchange e-newsletter. For more than two decades he’s written about the commercial banking industry, specializing in its technological side and how it relates to the actual business of banking. In addition to his weekly blogs—"Making Sense of It All"—he contributes fresh, original stories to each Tech Exchange issue based on personal interviews or exclusive contributed pieces. He previously was senior editor for Community Banker magazine (which merged into ABA Banking Journal) and for ABA Banking Journal and was managing editor and staff reporter for ABA’s Bankers News. Email him at jginovsky@sbpub.com.

back to top

Sections

About Us

Connect With Us

Resources