The iA-thenticate with smart chip technology helps prevent identity fraud during border crossing by using the embedded e-passport smart chip reader
, to verify the validity of credentials that are electronically stored on the e-passport.
In some cases, retailers are being hit with an increase in chargebacks for fraudulent transactions blamed on the lack of EMV acceptance, even though new chip readers
are in place waiting for certification, the NRF said.
Merchants that do not use chip readers
became liable for counterfeit transactions beginning on Oct.
There are consumer complaints that chip readers
take longer for an authorization than just a swipe.
A number of local retailers now have the new chip readers
installed but many of them aren't yet equipped to accept PINs, so signatures are being required - at least in the interim - for debit cards as well as for credit cards.
Some 1,500 residents have been issued with NFC-enabled smartphones and more than 500 Sitges retailers received contactless chip readers
in a joint project between Visa, the bank La Caixa and mobile operator Telefonica.
Chip cards have the potential to be used in more secure e-commerce in the future as chip readers
could be attached to personal computers, phones or digital televisions.
Payment processors and other providers have been slow to conduct certifications for small- and medium-sized merchants; so far only a fraction of merchants who have sought certifications have been able to obtain them, and the merchants who have been stuck in the certification queue are at increased risk of being victimized by fraud because of their inability to use their chip readers
," Durbin said.
The system should include handheld RFID chip readers
which have capability to access cart maintenance records in the field and the ability to enter and upload additional data in the field on demand and must acquire GPS data in the field to within 3 meters accuracy.
It is unclear, however, if other merchant categories will adopt physical chip readers
or contactless pads going forward.
This program was designed to research and implement ultra-high frequency chip readers