After Target Heist, Credit Cards Set for an Overhaul

by Luke Jones  on Monday, Jan. 27, 2014 12:00 am  

He said the bank will in February start issuing EMV cards to its commercial accounts that frequently travel overseas.

Arvest is among the top 75 in issuers of credit cards, although Wigley was quick to note that it’s near the bottom of that ranking with roughly 175,000 cardholders.

Compare that to an entity like Chase Bank of New York, which sits at the top, with closer to 80 million.

But Wigley said credit cards are still a very important part of Arvest’s business.

By the third quarter of this year, he said, 90 percent of the bank’s customers with card reissue dates in 2014 will have EMV-enabled cards.

The cards will have both a chip and the traditional strip, he noted, since it’s far too optimistic to expect the majority of U.S. merchants to be using EMV by then.

The full transition should be completed by the end of the first quarter of 2016, he said.

Arnold said the switch to EMV will be tough, but necessary.

“The chip-and-pin thing needs to happen,” he said. “I’m fearful for Arkansas banks; it’s going to be pretty taxing on these smaller issuers in terms of cost and whatnot.”

Indeed, Wigley said, it will be an expensive process.

“It depends on who you are,” Wigley said. “The more cards you order, the cheaper it’s going to be. Chip cards are going to cost us more.”

If the smaller banks don’t follow the bigger players, though, Arnold said, the losses will be greater.

 

 

Please read our comments policy before commenting.