Target Corporation (NYSE:TGT) Migrates To EMV Technology
Target Corporation (NYSE:TGT) has upgraded payment terminals at all its stores to accept chip-cards, also known as EMV cards. According to the company, the move puts it among retailers on the forefront of adopting chip-card payments in the U.S. The major benefit of EMV cards is that they have enhanced security because they are almost impossible to clone, unlike the magnetic stripe cards.
Target Corporation (NYSE:TGT) understands the pain in having a computer system compromised. To enhance the security of its customers, the retailer has updated its store checkout terminals to accept third-party chip-cards. The cards, which can be either credit or debit cards, are embedded with small electronic chips to provide extra security.
More secure card payment
According to Target, chip-cards use some of the best payment card security technology in the world today. To ensure extra security for shoppers paying with chip-cards, Target says that readers interact with the electronic chip to complete a transaction. The process of readers interacting with chips is more secure than reading information off the magnetic stripe of conventional payment cards.
Chip-cards support two ways of card authenticity validation. You can input a digital signature or provide a PIN to verify ownership of the card. For that reason, chip-card makes it nearly impossible for fraudsters to clone the card.
REDcard yet to get chips
Although customers will be able to use third-party chip-cards inside Target Corporation (NYSE:TGT) stores, the retailer hasn’t put chips on its REDcards. It says that work is in progress to enable chip technology in the cards and that is expected to happen in the coming months. As such, those who own REDcard can continue using them as they are until the upgraded cards with EMV technology are rolled out.
When the upgraded REDcards comes, Target says its internal team will have the first interaction with them. The reason for that is that the team can have a better understanding of the use of the cards so as to easily help customers where necessary.
Moreover, Target Corporation (NYSE:TGT) will also continue accepting third-party magnetic stripe technology cards as long as customers have them.
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