Lachlan Gunn - BenAlpin Ltd - Perth 11 November, 2010, 09:25 0 likes

Maybe it is the beginning of the end for the magnetic stripe?  Particularly if other European countries follow suit - as fraudsters perpetrating card skimming in Belgium look elsewhere.

Once replacement cards are eventually issued as 'Chip only', it's likely that the restrictions on use in EMV countries outside Europe may be lifted and there will be a new global interoperability standard......EMV.

This certainly brings more pressure on the US, but then already their cardholders are unable to use their 'stripe only' cards at many European payment terminals, as well as at an increasing number of payment terminals outside Europe.

....and earlier this week China UnionPay announced that from 2015 Chinese banks will no longer issue magnetic stripe cards, just Chip cards, and the upgrade process has already started.......

....and the recently published 7th SEPA Progress report states that from 2012 onwards, all newly issued SEPA cards should be issued, by default, as “chip-only” cards.

Belgium appears to be ahead of the curve, and heading in the right direction.