Citigroup Inc. plans to issue chip-based credit cards that adhere to the EMV Integrated Circuit Card Specifications later this year.
The New York banking company said Monday that it will include the technology, typically considered more secure than a standard magnetic-stripe card, in future versions of its Citi Executive AAdvantage World Elite MasterCard travel rewards card.
A spokeswoman for Citi did not respond to an inquiry on Monday but the company said in a press release that EMV would "provide cardmembers with the ability to use a technology that is increasingly important when making credit card purchases abroad."
Common overseas, EMV technology has been slow to catch on in the United States because of the costs banks must pay to include the smart chips in their cards and the need for merchants to upgrade to terminals that can read such cards. In recent months, Wells Fargo & Co., JPMorgan Chase & Co. and U.S. Bancorp have announced EMV versions of credit cards geared toward frequent international travelers. A few U.S. credit unions also issue the cards.
EMV cards are more difficult for hackers to compromise because account information is stored inside of a secure chip in the card rather than on a magnetic stripe. Wells Fargo, JPMorgan Chase and U.S. Bancorp are also including magnetic stripes in their EMV cards so that customers can use them at U.S. merchants.
