BOE, a recent Nedcor Bank acquisition, says it will become the first South African bank to accept EMV chip cards following the bank`s certification by Visa.
Chip cards are able to store data and applications on the embedded chip, making it possible for them to become the "electronic wallets" of the future. There are also security benefits with the new technology.
The EMV standard was developed jointly by Visa, Mastercard and Europay.
Phil Hepworth, GM for Visa International sub-Sahara, says the new technology also "provides far greater protection" against card fraud. "Chip cards carry larger storage and processing capabilities to offer a host of different utilities and functions including, for example, identification, social benefits and air miles."
Hepworth says everyone, except fraudsters, will benefit from using EMV-enabled smart cards. "Consumers will benefit through being able to use their cards for highly secure cashless purchases, thereby creating a safer environment. Retailers and their bankers will benefit from the greater security attached to consumers` usage of smart cards."
Security information is included on the chip ensuring that access is controlled even when the point-of-sale machine is not attached to a network.
The new cards do mean, however, that card-accepting terminals will need to be upgraded. These upgrades include ATMs and point-of-sale machines.
As part of the migration to chip cards, South African banks have established the EMV Forum, an inter-bank initiative to set technical standards and target dates for implementation of various steps.
Locally, terminal upgrades are expected to be completed by January 2005, a year ahead of the deadline set by the international card companies.
Banks that become most adept in the use of multi-application features on smart cards will become the leaders in the 21st Century, says Hepworth.
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