American Express in the next few months will begin issuing corporate
cards with chip-and-signature functionality to U.S. premium card customers. A
wider rollout will follow.
The new cards will benefit U.S. customers traveling abroad,
where use of chip-and-PIN/EMV technology is becoming standard and merchants increasingly
don't accept magnetic stripe cards. The new chip-and-signature cards will be accepted
wherever American Express cards are accepted. "As long as the card has a
chip, the [point-of-sale] machines are programmed to work," according to a
company spokesperson.
"It was important for us to do this because we think
overall it's really going to enhance our card members' experiences as they
travel abroad ... [in the] three areas that matter most: security, flexibility
and experience," said Darryl Brown, American Express president of global
corporate payments in the Americas.
For example, Brown said, travelers with chip-enabled cards
can use kiosks to book rail travel in Europe, instead of waiting in line for an
attendant.
Deemed to be more secure, card chip technology first was
developed in 1999 and launched in Europe in 2005 by original issuers Europay,
MasterCard and Visa. The United States is one of the last countries to replace magnetic
stripes and signature methods with chip technology, and card networks developed
a roadmap for a full refit by 2017.
In a recent BTN
interview, Citi global head of commercial cards Manish Kohli said
chip-and-PIN technology mitigates fraud, enhances the card experience and gives
more personal security to cardholders. Citi in August 2011 claimed to be the first commercial card issuer in the United States and Canada to provide
chip-and-PIN cards.
BMO Financial Group and Bank of America Merrill Lynch also announced chip-and-PIN plans in 2011. U.S. Bank followed
in 2012.