PH banks to used EMV chip in ATM cards

Manila, Philippines – Banks in the Philippines will replace soon the current automated teller machine (ATM) cards with a new technology.

Lamberto Villena, president and chief executive of Sterling Bank of Asia said EMV (Europay, Mastercard, Visa) chip cards would soon replace magnetic stripe cards issued by local banks to combat the increasing fraud incidents.

EMV chip is the new international standard for smart credit cards that have a built-in CPU chip for credit and debit transactions. It smart card is considered more secure than magnetic stripe cards because it can support sophisticated security methods and make decisions on its own.

The first domestic bank to release the locally-issued Visa card with EMV chip Sterling Bank of Asia is actively involved in the BancNet task force on the migration to EMV chip cards.

The Bangko Sentral ng Pilipinas requires that magnetic stripe cards be replaced by EMV by the end of 2016. Local banks were now working double time to meet the deadline said by Villena.

The Bangko Sentral said banks could implement EMV chip cards ahead of the mandatory schedule of Jan. 1, 2017 for their customers.

“The effectivity [mandatory date] is Jan. 1, 2017 for all. But now, it remains optional. But nothing stops a bank from already implementing [the use of] it,” said by Nestor Espenilla Jr. the Bangko Sentral Deputy Governor.

“The security in the chip cards would be critical. “added by Espinilla, even though there are reports that some banks would charge a fee for a switch to EMV chip cards.

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