The chip is key to the security of new EMV cards, ABA SVP Jess Sharp said in an American Banker op-ed yesterday rebutting claims that chips should always be paired with PINs instead of signatures for verification. Neither PIN nor signature “is the most important defense against fraud. It’s the chip that matters,” he wrote.
“Because chips are nearly impossible to counterfeit, they will help stop a majority of in-person card fraud,” Sharp explained. “All the more reason why retailers should install and activate their new terminals in time to protect consumers this holiday season.”
He added that “securing transactions goes beyond any one static measure, like a PIN, which is why we favor a more comprehensive and dynamic approach to stopping fraud.” The banking industry is rolling out ever more dynamic technologies, including tokenization, encryption and biometrics, to protect customers.