JP Morgan Chase is to introduce the first
chip-and-PIN card in the US.
Having returned to profit in the first quarter –
Chase’s card
unit posted net income of $1.3bn compared with a net loss of $303m
in the prior year – the US’ second-largest bank by assets and
deposits will roll out the first EMV-technology based chip-and-PIN
JPMorgan Palladium credit card in June.
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Chase will extend the technology to its other
credit cards by the end of the year.
David Porter, general manager of Chase Cards Services, said that
the introduction of chip-and-PIN cards was part of the bank’s
strategy to offer enhanced security to its cardholders when making
purchases abroad.
Cardholders of American banks have to manually sign forms when
making purchases abroad as European POS terminals do not support
magnetic stripe technology with which American cards are
embedded.
EMV-technology supported cards are safer than magnetic stripe
cards.
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By GlobalData“The addition of chip-and-signature technology enables Chase
cardmembers to enjoy simplified transactions in Europe, such as
seamlessly using point-of-sale kiosks and train ticket turnstiles
the same way the locals can, with the added piece-of-mind of secure
transactions,” Porter said.
“Although chip-enabled terminals are fairly uncommon in the
United States where the vast majority of merchants only support
magnetic strip cards, our focus is to provide chip-and-signature
cards to our cardmembers who frequently travel outside the United
States.”
