Sam’s Club adds security chip to new credit cards
Warehouse-club operator Sam’s Club has unveiled a new store credit card that will have an embedded chip that will make the card more difficult to duplicate, the first mass retailer to employ such technology.
Sam’s Club, owned and operated by Wal-Mart Stores (WMT), said the new card will have enhanced security from fraudulent activity. The card is being issued by MasterCard (MA).
Sam’s Club’s decision to enhance the security of its credit cards comes as several retailers have found themselves targeted by cyberattacks that have at times resulted in the theft of consumers’ data. Billions of dollars are lost every year to repair systems hit by such attacks. Target (TGT), Sally Beauty Holdings (SBH) and eBay (EBAY) have disclosed attacks in recent months.
“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,” said MasterCard North America president Chris McWilton.
Meanwhile, MasterCard and rival Visa (V) have renewed their efforts to speed up the adoption of microchips into U.S. credit and debit cards, arguing a move away from the black magnetic strips on the back of those cards would eliminate a large amount of credit card fraud.