California Senate Takes Up Mandating the Use of EMV Chip Cards Beginning April 1, 2016. Electronic Transaction Association Opposes It.

May 21 California Senate Takes Up Mandating the Use of EMV Chip Cards Beginning April 1, 2016. Electronic Transaction Association Opposes It.

California Senate

California’s Senate is taking up a bill, SB 135. According to the legislative counsel’s digest (sans some of the legalese), “This bill would require retailers, starting April 1, 2016, except as specified1 [who] accept a payment card… to provide a means of processing [payment card] transactions involving payment cards equipped with embedded microchips or any other technology that is more secure than microchip technology for card-present fraud prevention.”

1No exceptions were specified. We were left scratching our heads trying to figure out what that meant. Didn’t help. Well, it did sort of. We had an itch.

“The bill would also require specified contracts entered into between a financial institution and a payment card network… to include a provision requiring that a new or replacement payment card issued to a cardholder with a California mailing address have an embedded microchip or any other technology that is more secure than microchip technology for …fraud prevention.”

That’s the gist of the bill. If you want the grist, here’s a link.

An email from the Electronic Transactions Association (ETA), the global trade association that represents more than 500 payments and technology companies, calls on Californians to block the bill.

The ETA’s reasoning, according to its email, is that the legislation would “stifle free market innovation. Passing a single state technology standard will open the floodgate to additional state responses and create an expensive, unsafe, and inefficient myriad of technology standards.”

ThreatMetrix® builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 500 million monthly transactions and protects more than 160 million active user accounts across 2,500 customers and 10,000 websites.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *