EMV (Eurocard, MasterCard
), is the recognized international standard for smart chips included on payment cards. Adoption of this standard in the US appears to be uncertain, due to a weak business case.
From Credit Union Times:
An executive with a nationwide fast food chain has gone on record as doubting whether the benefits of moving to EMV cards from magnetic stripe cards will be worth the expense. Read more
EMV cards carry security and other validating data on computer chips embedded in the cards while magnetic stripe cards carry this data on a strip of magnetic tape on the backs of the cards.
EMV cards are widely considered more effective against fraud – and have been widely adopted outside the U.S. – but are more expensive to issue and require point-of-sale terminals capable of reading the cards.
... “Evidence from overseas suggests any prolonged accommodation of older-card technology during a transition to computer-chip cards can allow fraudsters to exploit weak links in card security,” Sullivan wrote in the published paper. “Reliance on low-cost authentication methods also invites growth in fraud.”
Sullivan also noted that as EMV cards decrease the incidence of counterfeit card fraud, the prevalence of card stolen or lost fraud is liable to increase.