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Bankers should find out whether their card provider will offer EMV cards equipped with near field communication technology, said Jason Lesteberg, senior account executive with SHAZAM, the Johnston, Iowa-based EFT network. Lesteberg spoke to more than 125 bankers who gathered at the Minneapolis Golf Club in St. Louis Park, Minn., for United Bankers Bank's golf event on June 15.
All EMV cards interface with merchant terminals through a physical connection and must stay inserted in the terminal for the entire transaction, Lesteberg said. "In point-of-sale systems and ATMs two prongs inside the machine come down when the card is inserted and connect with the card's chip," he said.
Some cards are equipped with near field communication, Lesteberg said. NFC is a technology that allows a contactless payment where the card and the pointof-sale device interact via short range radio. Customers using EMV cards with NFC hold the card near the point-of-sale device to complete the transaction.
Bankers will want to determine whether their card provider is supplying NFC-equipped cards. "NFC is dangerous technology," he said. "Two years ago, 60 Minutes ran a story where they walked down the street in New York with a near field communication skimming...