All banks in Panama must have integrated circuit technology by December 20, 2014, with an option existing to take an additional three months, until March 2015.
Debit and credit cards must have a microcircuit or chip system which provides more security and more storage of user information with the aim of "... Checking by means of cryptographic procedures, that the card and point of sale where it is used are valid, before carrying out electronic banking services. "
In the first half of 2014 ATMs will be adapted to the new technology which was first incorporated in the country in October last year.
S21.com.gt reports: "After various issuers of credit and debit cards began incorporating the chip to improve safety and avoid credit card cloning, the banking system needs to work on changing ATM's so that they can read these new cards".
The Panamanian company Telered has been accredited by Visa and MasterCard to process transactions with the new EMV interoperability standard.
Telered has the backing of both brands to perform transactions with the new interoperability standard EMV (microprocessor chip cards).
"This involves changing terminals at ATMs and
outlets, so that they can read the cards with this technology and making adaptations to processing and transaction authorization systems", reported Panamaamerica.com.pa.
The Panamanian Electronic Payments Network has invested $7 million in a new technology platform that will incorporate debit cards which use chips, and is expected to be operational from January 2014.
This was announced by the CEO of Security and Fraud Prevention, Abdy Sanjur. "The change reflects the wider acceptance of smart cards around the world, as well as the rules on transfer of responsibility and governmental administration" reported Capital.com.pa.
Panamanian banks are preparing for the migration from magnetic to chip cards in an effort to reduce fraud in the country.
Although the change from magnetic to chip cards (EMV) in Panama is being applied gradually, banks such as Bac Credomatic and Banco General are already applying the finishing touches to adopting this new technology.
Amauri Castillo, advisor to the Superintendency of Banks in Panama (SBP), said that "some banks are better prepared than others and this will be a gradual process, but the important thing is that the infrastructure, at least at the level of ATMs, is now ready ".