How Credit and Payment Security Impacts Your Financial Planning

Financial Security Austin TX Brett Pittsenbargar

If you want to achieve financial security, you need to keep your financial information secure when using your credit cards.

Many people planning for retirement think about how to save for their later days, but don’t pause to consider how to protect those savings. Yet fraud is on the rise, with millions of credit card numbers stolen from JCPenney, 7-Eleven, JetBlue, Target, Michaels, Neiman Marcus and many more.

If you want to ensure your money is still around when you’re ready to invest or pay retirement expenses, it’s important to know how to keep your data safe. The EMV standard helps you do that.

Adopting the Europay, MasterCard, and Visa Standard for Financial Security

Though other countries adapted to chip technology years ago, the U.S. lagged behind, with many stores still not accepting the chip even just last year.

However, the continued and very public success of hackers and the ever-increasing cost of fraud losses, fraud management, and fraud-related expenses spurred the United States credit payment industry to change the way it does business.

The Europay, MasterCard, and Visa (EMV™) standard for credit payments is generally believed to be more secure than our current payment system. Now that the U.S. is making the transition to this system, it can help you keep your financial information secure.

What is EMV?

EMV was developed in the 1990s. A study commissioned by the European Council for Payment Systems and conducted by Europay International determined that the most effective way to reduce credit card fraud was to eliminate magnetic stripes (mag-stripes) and embed chips in credit and debit cards instead, which encrypt customer data.

In the United Kingdom, the introduction of EMV cards is credited with helping reduce fraud significantly. Counterfeit card fraud fell by 75% after peaking in 2008, and fraud losses have fallen by 75% since 2004.

Today, there are 80 countries around the world who have implemented or are implementing EMV technology. In fact, if you’ve traveled overseas in recent years, you may have found yourself needing to get a credit card with a chip in it in order to access your funds. Many Americans find their mag-stripe credit cards won’t work in train station kiosks or in some stores overseas, which was a challenge before the chip became more widely adapted in the states.

Credit Card Payments are Constantly Evolving

The good news is EMV should make card payments in the United States more secure.

The bad news is payment systems are not static.

As the popularity of mobile devices has grown so has the popularity of mobile banking and commerce. Some consumers already have embraced mobile applications that allow them to use smart phones or tablets to pay for goods and services.

Learn more about keeping your financial information safe with mobile banking here.

The growth of mobile payments is expected to accelerate and change the way business is done around the world, so even as you’re adapting to the chip, it’s important to stay up-to-date on financial security on mobile as well.

Learn how you can keep your financial information safe online here.

Achieve Financial Security with BP Financial in Austin TX

The good news is American consumers will have lots of choices when they want to make purchases. The bad news is it can be challenging to stay abreast of new technology and the security measures it requires.

Keep all of your financial information secure, whether you plan to invest it or use it for retirement. Contact BP Financial in Austin TX today to learn how you can achieve financial security today.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

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