4 Ways Tech is Changing the Credit Card Industry
Banking remains as a staple in our industry. It has been in the history of the world going as far back as the ancient Babylonian era. During this time, it was well-known that grain loans were given to farmers who needed to transport their goods to and from town. It was in the 14th century where banking became what we know today. Italy monopolized on the idea, creating the oldest bank still known today. The Monte Dei Paschi di Siena has been opened now since 1472 – making it a fascinating find for many.
With the creation of technology and, eventually, the creation of credit cards, banking has changed immensely throughout the years. As tech has advanced, so has banking in order to meet the demands and requirements from banks. From newly designed chips to updated regulations, here are the five ways tech is changing the credit card system.
1. Securing the Way You Shop
Credit card theft had become so terrible that banks had to find a way to prevent it. This goes beyond a national level that every diplomat and bank in the world was trying to find an effective way to combat these issues. It was in 2006 that the UK adopted the newly designed EMV standard of credit cards, which enhanced the security on cards immensely.
EMV standard was developed and named after Europay, the makers of MasterCard and Visa. This technology added chips to every credit card that would transform the way the industry worked.
These chips transmit unique codes to a system that will verify the validity of each transaction. This microchip has been shown to help dramatically decrease thieves from being able to steal your credit card numbers from stores.
Australia adopted the technology in 2008, Canada in 2012 and America in 2014.
2. Prevent Foreign Fraud from Occurring
Fraud from abroad has been a problem for many people, America specifically. Since America was the last country to install the chip technology, many hackers abroad began to target the U.S. Major breaches such as the Target breach in 2013, Home Depot breach in 2014, and many others have caught the attention of many and reveal just how sensitive information can be stolen without detection.
The EMV technology has been able to prevent that from occurring since all transactions are recorded and banks are able to jump on fraud alerts. This is especially true for victims of foreign-fraud.
3. Difficulty with Counterfeiting Cards
Technology has put a huge damper on companies being able counterfeit cards from major branches like Maverick Bank. The EMV tech offers protection against counterfeited cards. Since the card now has more advanced technology in it, where the chip sends data to the bank and processes that the transaction was actually used by the card, it is going to be more difficult for people to get their hands on counterfeits.
Hackers and fraudsters would be forced to figure out how to build the chip, how the unique codes work, how to duplicate the system transmitted by the chip and replicate it. The costs of doing this would be astronomical and remove the profit from producing them.
4. Better Customer Service
One of the more notable attributes of credit card companies and banks is that the technology is also enhancing the effectiveness of their customer service. It's easier to monitor your credit with the online mobile banking apps. Many of these offer you real-time updates, which wasn't something known in the past. It was difficult for people to know what their balances were and they would have to call in.
The need for calling the bank has ended finally. Everything can be done online, changing the way the credit card companies are able to handle and manage their systems.
Technology Has Upgraded the Way Credit Cards Work
Modern technology continues to update on a daily basis. With the advancements of tech, credit card companies and banks had to become more strategic about their approach with their credit systems. Customers demanded more privacy and security for their cards after huge hits in the market from hackers and fraudsters. Adapting with the times, these financial institutes have innovated the way credit cards and banking works forever.
