No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeBankingCosta Rican banks to replace credit, debit cards to improve security

Costa Rican banks to replace credit, debit cards to improve security

All banks in Costa Rica will have to incorporate into their debit and credit cards a chip with the client’s personal and security information, according to a recent directive issued by Costa Rica’s Central Bank (BCCR).

The central bank’s order, which the Costa Rican Banking Association (ABC) announced Tuesday, aims at enhancing security by encrypting information currently only stored in the cards’ magnetic band.

International card companies Visa and Mastercard issued directives last year to incorporate chips into all their cards to curb card-cloning, which allows criminals to copy a card-owner’s bank account and personal information onto another card for use. The magnetic band typically found on cards has proven to be very vulnerable to cloning cards using devices commonly known as ATM skimmers.

ABC spokesman José Ignacio Cordero said banks here will maintain the magnetic band technology since there are several countries that have yet to incorporate chip technology into cards.

The bank’s directive also orders chips to include contactless payment technology, an additional payment method that allows businesses to charge a customer without swiping the card through a machine.

“This method allows for faster and more efficient transactions, which is key for certain types of business such as supermarkets, fast food restaurants, public transportation, among others,” Cordero said.

The central bank set Jan. 1, 2016 as the mandatory date for all banks to start replacing their customers’ cards, however it did not set a deadline for completing the change.

A survey conducted by the ABC found that 95 percent of banks in the country have already started changing out the 7 million credit and debit cards currently circulating in Costa Rica. Several of these banks have issued a total of around 500,000 new cards with chip technology, the group reported.

Banks also will begin issuing cards with chips in exchange for those that expire this year, and those that have been lost or confiscated when banks detect a suspicious transaction. ABC officials say replacing all cards could take some four years to complete. Each bank will have to decide whether to charge customers for the replacement.

There are currently some 120,000 card machines throughout Costa Rica, according to the ABC. About 80 percent of them are equipped to charge customers via both chip and magnetic band technology.

Recommended: Don’t let thieves steal your Christmas bonus!

Trending Now

The Most Clueless Gringo in Costa Rica: A Satirical Take on Expat Life

If part of your online day includes mindless scrolling through reels, you’ve probably seen the Dos Equis beer parody commercials. The original ads featured the...

Costa Rica’s Role in US Deportation Drama with Salvadoran Migrant

A Salvadoran man at the center of a heated US immigration battle could end up in Costa Rica if he accepts a guilty plea,...

Nicaragua Hosts Historic 2025 AmeriCup Basketball Tournament

The 2025 AmeriCup, the men’s basketball Copa América, tips off this Friday in Nicaragua, marking the most significant international sporting event in the country’s...

Costa Rica Anglers Catch Rare Orange and Albino Nurse Shark

Anglers on a fishing trip off Costa Rica's Caribbean coast caught a nurse shark unlike any seen before: bright orange skin and stark white...

Former Costa Rican President Miguel Ángel Rodríguez Faces Trial

Miguel Ángel Rodríguez, who served as Costa Rica’s president from 1998 to 2002, returned to court on today, to face charges in the so-called...

Costa Rica’s Sibö Chocolate Wins Bronze at Int’l Awards

Chocolate Sibö once again stood out at the International Chocolate Awards, the largest fine chocolate competition based in New York. The Costa Rican brand...
L. Arias
L. Arias
Reporter | The Tico Times |
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica