Target Switches to Chip-and-PIN Cards after Data Breach


Target has announced that it will start to issue chip-and-PIN cards early next year. The reason for the upgrade is to improve the security of its debit and credit cards. This change comes on the heels of the retailer’s recent data breach, which affected as many as 70 million customers.

Target says it plans to replace its entire REDcard portfolio, in addition to all Target-branded debit and credit cards. These cards will be swapped out with cards that have a computer chip and require the cardholder to enter their personal PIN. This will all be made possible with MasterCard’s chip-and-PIN solution. As a result, Target will become one of the first retailers in the U.S. to adopt this technology.

Says Target in a written statement:

“Earlier this year, Target announced an accelerated $100 million plan to move its REDcard portfolio to chip-and-PIN-enabled technology and to install supporting software and next-generation payment devices in stores. The new payment terminals will be in all 1,797 U.S. stores by this September, six months ahead of schedule. In addition, by early next year, Target will enable all REDcards with chip-and-PIN technology and begin accepting payments from all chip-enabled cards in its stores.”

Furthermore, Target confirmed that the company has hired a new chief information officer to assist with the data security efforts. Bob DeRodes will oversee Target’s technology team and operations.


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