Debit cards lag credit cards in EMV migration, putting banks at risk

Three times as many credit cards will be chip-enabled by the end of the year as debit cards, making the slower banks bigger targets for cybercriminals.

According to Deborah Baxley, principal for cards and payments at Capgemini Financial Services, an estimated 25 percent of debit cards are expected to be ready — compared to about 75 percent of credit cards.

The reason is that the U.S. debit card system works differently than anywhere else in the world, she said, and it took longer than expected to come up with specifications.

“The industry had to come up with a solution for the unique requirements of the U.S. debit card system,” she said. “And to comply with some recent regulations that were part of the Dodd Frank financial reform act, which requires debit cards to have a choice of routing to different debit networks.”

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