Costa Rican banks to replace credit, debit cards to improve security

By L. Arias

All banks in Costa Rica will have to incorporate into their debit and credit cards a chip with the client’s personal and security information, according to a recent directive issued by Costa Rica’s Central Bank (BCCR).

The central bank’s order, which the Costa Rican Banking Association (ABC) announced Tuesday, aims at enhancing security by encrypting information currently only stored in the cards’ magnetic band.

International card companies Visa and Mastercard issued directives last year to incorporate chips into all their cards to curb card-cloning, which allows criminals to copy a card-owner’s bank account and personal information onto another card for use. The magnetic band typically found on cards has proven to be very vulnerable to cloning cards using devices commonly known as ATM skimmers.

ABC spokesman José Ignacio Cordero said banks here will maintain the magnetic band technology since there are several countries that have yet to incorporate chip technology into cards.

The bank’s directive also orders chips to include contactless payment technology, an additional payment method that allows businesses to charge a customer without swiping the card through a machine.

“This method allows for faster and more efficient … continue reading

Via:: Tico Times