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S6551Senate2013-2014 SessionSame asA8649

Relates to requiring credit cards to contain smart chip technology

Status
In Senate Committee
Consumer Protection
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Consumer Protection

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Who cares

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Sponsors

Primary sponsor
Joseph A. Griffo

Senator · Senate District 47

Chair, Banks

1 Co-sponsor

History

  1. Print number 6551a
  2. Amend (t) and recommit to consumer protection
  3. Referred to consumer protection

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A8649Assembly

Relates to requiring credit cards to contain smart chip technology

In Assembly Committee · Consumer Affairs And Protection · Sponsor Aileen Gunther

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S6551A

Title of bill

An act to amend the banking law, in relation to requiring credit cards to contain smart chip technology

Purpose

To require credit cards issued to New York State residents be equipped with smart chip technology.

Summary of provisions

Section one adds a new subdivision 30 to section 2 of the banking law to define the terms "smart chip," "chip and PIN," and "chip and signature."

Section two adds a new section 9-v to the banking law to require that lending institutions must issue credit cards containing smart chip technology.

Section three provides the effective date.

Justification

Today, most credit cards issued to New Yorkers still rely on the magnetic stripe - a technology which was developed in the 1960s. However, more than 80 countries have adopted smart chip technology for the issuance of credit cards.

The technology enables a credit card user's information to be stored on a microprocessor chip, instead of the magnetic stripe which is much easier to hack. The information contained on the chip is encrypted, and the user's address and PIN are not stored.

Millions of people each year are affected by credit card fraud. In a recent case, a retailer had 40 million debit and credit accounts hacked. In Canada, debit card fraud has dropped 45% since the initial implementation of chip and pin in 2009. This legislation is necessary to protect consumers from hackers and credit and debit card fraud.

Legislative history

New.

FISCAL IMPLICATIONS:. None to the state.

Effective date

Immediate and shall apply to all credit cards issued or reissued on and after January 1, 2015.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.