The replacement of all cards in the U.S. with EMV enabled cards as well as the updated technology for merchants who accept the cards is not only a massive undertaking; it is an enormously expensive one. But, there just might be another solution…
In a recent article by PYMNTS.com they discuss a breakthrough technology by LoopPay which can be implemented now with the current infrastructure. According to the article:
“Loop’s MST (magnetic secure transmission) technology formats card data into simulated magnetic stripe tracks and transmits them via a pulsed magnetic field which can be read by any POS terminal that accepts a mag stripe today. Loop takes this process one step further by doing something LoopPay’s Co-Founder, George Wallner calls “Mobile Tokenization” which uses Host Card Emulation to tokenize and distribute cardholder data that is presented to a retailer’s existing mag stripe terminal via Loop’s MST technology. Tokens are issued by a secure, central location.”
The article goes on to say that LoopPay’s Chief Technologist believes that it is a far better security solution for retailers than EMV, at a much, much reduced cost since it puts the risk of keeping the job of authenticating cardholder data with the issuer, who would issue the tokens, which is where Wallner says that responsibility belongs. He goes on to explain “once a token is transmitted and used in a transaction, it expires and is no longer usable in a subsequent transaction”.
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