By Dow Jones Business News,
June 04, 2014, 11:05:00 AM EDT
By Michael Calia
Sam's Club, the warehouse-club chain owned by Wal-Mart Stores Inc., said it would unveil a new credit card that
features chip-enabled security technology.
The new card--co-branded with MasterCard Inc. and issued by GE Capital Retail Bank--represents the first active
adoption of the technology by a mass retailer, Sam's Club said.
MasterCard and rival Visa Inc. said in March they would form a group to accelerate the adoption of advanced
computer chip technology, known as EMV, which is intended to make it more difficult for thieves to duplicate. The
companies said then that the group would include banks, credit unions, merchant processors, makers of payment terminals
and industry trade associations.
The companies have set an October 2015 deadline for retailers to adopt the technology more broadly, although the
National Retail Federation has questioned the return on investment to update payment systems with EMV technology. The
group has said it agrees that cards using both PIN- and chip-based technologies represent an improvement in data
security, but it thinks retailers will upgrade at their own pace.
The security efforts come amid a series of breaches involving retailers and other companies, such as Target Corp.,
that have exposed the financial information of millions of consumers.
"This move by Sam's Club makes them a trailblazer in getting chip cards in the hands of businesses and consumers,
and leading the push toward a safer and more secure customer experience," Chris McWilton, MasterCard's North American
president, said Tuesday night. "This will no doubt help drive chip-enabled technology forward here in the U.S. as it
gains more traction."
The new card, along with a new rewards program linked to it, will become available June 23, Sam's Club said.
Write to Michael Calia at firstname.lastname@example.org
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