White House eyes switch to microchip cards for paying out benefits

[nitpicker]

http://thehill.com/policy/technology/220905-white-house-eyes-switch-to-microchip-cards-for-paying-out-benefits

White House eyes switch to microchip cards for paying out benefits
By Julian Hattem and Kevin Cirilli - 10/15/14 06:38 PM EDT

The White House is planning an announcement calling on federal agencies to use more secure credit and debit card technology, multiple sources told The Hill.

According to one person familiar with the administration’s plans, the White House will require that most federal agencies giving out benefits on prepaid cards use ones that come embedded with a microchip, instead of or in addition to a magnetic strip on the back. The technology is known as EMV, a global standard that stands for for Europay, MasterCard and Visa. (snip) The White House had originally been eyeing the announcement for Friday but is likely to push it back, the source said.

The White House declined to comment on its plans.

It's unclear when the administration will require the government agencies to make the switch to the newer technology. The industry has already mandated that retailers adopt EMV technology — which is popular overseas but has yet to make major inroads in the U.S. — by October 1, 2015, or they will be deemed liable for fraud. The chips store and transmit encrypted data and are considered to be more secure than the magnetic strip common in American cards.
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[aquart]

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