MasterCard Pins ATM Fraud on Owners
MasterCard Inc., set a deadline for thousands of ATM owners to authenticate debit-card transactions to use computer chips instead of magnetic strips. If the ATM owners choose to not upgrade their ATMs, they would be financially responsible for fraudulent transactions, where losses can count quickly and wipe out annual profits of a machine. Last year, the counterfeit cards used at ATMs amounted to an estimated $426 million last year, while people in New York were also arrested for stealing money by counterfeit cards. Companies such as Visa and MasterCard are supporting ATM operators to get chip-based cards because they are widely used around the world and more secure. The only negative issue with this chip-based card is the costs to manufacture them, as well as to upgrade all of the machines. The estimated costs are more than $860 million, to upgrade the machines.
Many merchants of ATMs are not converting their cards just yet because due to technology nowadays, they may not need the chip enabled plastic since many people are allowed to make payments through their mobile devices. I personally believe that ATM owners should not have to face this shift so soon because in our society technology is becoming more advanced by how we make payments. The amount estimated in counterfeit cards is actually less than the costs to upgrade all of the machines throughout the U.S. as well.
Written by: Samantha Chin
Source: The Wall Street Journal
Sidel, R. (2013, April 1). MasterCard Pins ATM Fraud on Owners. Retrieved April 2, 2013, from The Wall Street Journal : http://online.wsj.com/article/SB10001424127887324883604578396270849121246.html?mod=WSJ_business_whatsNews