Credit Card Industry Steps Up Payments Security Efforts

Credit card industry players are boosting their efforts to keep sensitive card information out of merchant environments as reports of data breaches and theft continue to rise, weakening confidence in electronic payment systems.

Home Depot is the latest to have reported a potential data breach on its system. Card information from consumers who used cards at P.F. Chang’s China Bistro and in grocery stores operating as Albertsons, Acme and Jewel-Osco has also been recently stolen.

Cases like these highlight the vulnerability of merchant systems and also stress the need for more security measures.

In a move to bolster electronic payments security, Visa and MasterCard are introducing a new technology called tokenization, wherein sensitive customer information is replaced with a unique set of numbers that confirms the cardholder’s identity.

The tokenization technology can be used online, in brick-and-mortar stores using a smartphone, and with apps that users load onto their smartphone. As this technology masks sensitive consumer information, hackers will not be able to steal any vital details.

Another measure is the EMV chip card technology, which has become the global standard for debit and credit card payments. With this technology, payment instruments come with embedded processor chips to store and protect cardholder information.

With these solutions, industry insiders hope incidences of data breach and theft will be diminished if not completely eliminated.