Target CFO John Mulligan, in testimony before the Senate Committee on the Judiciary in Washington, D.C., announced the company will be accelerating its implementation of smart card technology by more than six months. The implementation is designed to reduce the threat of credit and debit card fraud among shoppers across the company’s 1,800 U.S. stores.
Mulligan appeared at the hearing on behalf of Target to discuss the company’s response to its data breach; efforts to protect customers; and support of industry initiatives to strengthen data security.
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Target plans to implement chip-enabled smart-card technology in all of its store card readers in the U.S. by Q1 2015, more than six months ahead of previous plans, according to Mulligan. The project is estimated to cost Target $100 million.
“Updating payment card technology and strengthening protections for American consumers is a shared responsibility and requires a collective and coordinated response,” said Mulligan. “On behalf of Target, I am committing that we will be an active part of that solution.”
Chip-enabled smart cards contain a tiny microprocessor chip that encrypts the transaction data shared with in-store POS terminals. The encryption prevents potential thieves from counterfeiting the card, even if the card number is stolen in a data breach.
