BofA (BAC) Latest in String of Banks to Adopt New Credit Card Safety Measures
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Price: $13.43 +0.52%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.3%
Revenue Growth %: +5.4%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.3%
Revenue Growth %: +5.4%
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Bank of America (NYSE: BAC) said earlier that it is going to start using new chip technology in its consumer credit cards.
Chips with EMV (EuroPayMastercard/Visa) technology will be implemented in "all newly issued Merrill Lynch credit cards, U.S. Trust Accolades, BankAmericard Travel Rewards, BankAmericard Privileges, and Virgin Atlantic travel credit cards," according to the release.
The technology has already been the standard for cards in Europe, making BofA's new offerings very traveler friendly.
Being made by MasterCard (NYSE: MA) and Visa (NYSE: V), the two have been pushing those in the U.S. payments industry to upgrade, with merchants encouraged to use compatible check-out terminals or face stiffer fraud liability costs.
Aside from BofA looking better as a bank and stemming potential losses from claims, chip makers like NXP Semi (Nasdaq: NXPI) and STMicroelectronics (NYSE: STM) as well as terminal providers like Verifone (NYSE: PAY), NCR Corp. (NYSE: NCR), and Diebold (NYSE: DBD) should also see a bump in sales as more and more institutions and retailers adopt the new safety measure. (In fact, Barron's recently highlighted NCR Corp for its terminal and ATM growth potential.)
According to Javelin Strategy & Research, credit card fraud in the U.S. rose 12 percent to 11.1 million victims in 2010, some of the most recent data available.
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Chips with EMV (EuroPayMastercard/Visa) technology will be implemented in "all newly issued Merrill Lynch credit cards, U.S. Trust Accolades, BankAmericard Travel Rewards, BankAmericard Privileges, and Virgin Atlantic travel credit cards," according to the release.
The technology has already been the standard for cards in Europe, making BofA's new offerings very traveler friendly.
Being made by MasterCard (NYSE: MA) and Visa (NYSE: V), the two have been pushing those in the U.S. payments industry to upgrade, with merchants encouraged to use compatible check-out terminals or face stiffer fraud liability costs.
Aside from BofA looking better as a bank and stemming potential losses from claims, chip makers like NXP Semi (Nasdaq: NXPI) and STMicroelectronics (NYSE: STM) as well as terminal providers like Verifone (NYSE: PAY), NCR Corp. (NYSE: NCR), and Diebold (NYSE: DBD) should also see a bump in sales as more and more institutions and retailers adopt the new safety measure. (In fact, Barron's recently highlighted NCR Corp for its terminal and ATM growth potential.)
According to Javelin Strategy & Research, credit card fraud in the U.S. rose 12 percent to 11.1 million victims in 2010, some of the most recent data available.
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