EVERYWHERE BUT HERE
Currently the major form of plastic money in use in the United States of America is the mega strip card. This is despite the fact that the entire world is moving in a whole different direction as far as electronic money transfer is concerned. Most countries are fast adopting the use of EMV cards which are more convenient as they fuse three payment modes into one card for convenience and to lessen the bulk of carrying multiple cards. The initials EMV stand for euro pay, MasterCard and visa. All these three electronic modes of payment are rolled into one, convenient indeed (Aneace, Hadaad, p.33).
The United States of America seems to be lagging behind in adaptation of this new form of payment which has a wider acceptability and near global usage. The slow migration of the United States to this newer form of payment has led to a great deal of inconveniences to citizens of the United States travelling abroad. Some have had their mega strip cards declined as a form of payment due to compatibility issues and acceptability issues. This has proved to be quite inconveniencing for people especially when they are outside their own country (Feiler, Keith, p.51).
One of the main issues holding back the United States of America from joining global trends and updating payment methods is the reluctance of retailers to change their point of purchase mechanism from that of the traditional mega trip card to the new and globally appealing EMV cards. This reluctance has been caused to a very large extent by lack of adequate knowledge as well as misinformation. Many retailers are of the opinion that the new EMV system will require regular upgrades and will thus cost them more in terms of maintenance cost than the mega strip card. Some of the card users are of the opinion that the EMV cards are more susceptible to fraud and might lead to loss of their hard earned money. Contrary to this urban legend EMV cards have proven to be much safer and less susceptible to fraud. They have a system which constantly counterchecks for the slightest hints of fraudulent use and if someone steals this card they will be able to use it only once. The EMV cards are also easier to use and much faster as they require a combination of card and signature as opposed to mega strip cards which fuse a combination of card and pin (Aneace, Hadaad, p.68).
In order for the United States of America to maintain its stance as one of the major financial blocks of the globe it must show capability of versatility and ability to move with world trends and not get left behind.
Allen, Larry. Encyclopedia of money. Santa Barbara, Calif.: ABC-CLIO, 2009. Print.
Feiler, Keith. Electronic money. Chicago, IL: Federal Reserve Bank of Chicago, 2003. Print.
Haddad, Aneace, and Aneace Haddad.A new way to pay: creating competitive advantage through the EMV smart card standard. Aldershot, Hants, England: Gower, 2005. Print.