The credit card industry got a huge boost from President Obama last month when he signed an executive order requiring a switch to chip-and-pin technology for government vendors and agencies.
It dictates the Department of the Treasury “take necessary steps” to guarantee payment terminals authorized by the agency have “enhanced security features” by January 2015. It would require a complete upgrade of all credit card machines approved by the Department of Treasury, a cost borne by government agencies instead of credit card firms.
Visa and Mastercard have pledged to fully adopt chip-and-pin technology by October 2015.
Precipitated by high-profile data breaches at credit card terminals at retailer Target in January of this year, the president’s order is akin to a credit card industry bailout, known as the “BuySecure initiative.”
Obama signed the executive order Oct. 17 at the office of the Consumer Financial Protection Bureau.