When you look at a number of solutions in the technology landscape, there has been much advancement since the 1970s. While the credit card processing marketplace has experienced some change to the hardware and software, the fundamentals remain the same and revolve around the magnetic strip – at least in the United States.
A recent article from The Times of India examined one such technology that is shaking up the payment industry. This is the implementation of smart chips and advanced computing programming.
This change in card technology is needed because of increased crime. The article reports that in the United States in 2012, $5.3 billion was totaled in credit card fraud. Making matter worse, the amount lost in this manner continues to grow by between 30 to 50 percent per year.
This has created a need to innovate within the payment sector.
"I think this will become a defining moment about how we in the industry think about security," said Eileen Serra, the chief executive of Chase Card Services.
There are several solutions in the marketplace now that have yet to break into the U.S. landscape, but will soon. The main one is adding a microprocessor into the card as part of the EMV standard. This is something that both Visa and MasterCard hard deadlines of late 2015 for implementation in U.S. markets.
Change is coming to the credit card processing program that many companies use. With the help of a payments processor, any organization can easily deploy a updated solution that improves security systems.