2007 Banking Colloquium
Workshop No. 5 Chip Card Technology and the Transformation of the Canadian Payment
Card Industry
An evolving industry
The new millennium confirms the disintermediation trend in the Payments World.
Chip Card Migration – Rational
The decision of Canadian associations to migrate toward Chip Cards is based on different factors.
Fraud History:
Associations mandates:
International Trend:
Banks Impacts
The Chip Card migration have impacts on issuer activities
The fraud projected savings will not cover the cost of migration
Customers Impacts
- Authentication method (Credit cards)
- A PIN will replace the signature as customer identifier
- PIN management
- PIN change require a complex infrastructure
- Transition Period
- Customer will use both signature and PIN
- Merchant and customer information will be key
- Issuer’s goal is to offer a seamless transition
The adoption of Chip Card technology will consolidate the customer’s trust in the Payment system
The evolution continues
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