President Barack Obama signed an executive order last week requiring that federal credit cards and payment processing terminals implement enhanced security features to combat financial fraud and identity theft. He also called on banks and retailers to join the effort.

The executive order calls on government departments and agencies to transition payment processing terminals and credit, debit, and other payment cards to employ enhanced security features, including chip-and-PIN technology. Chip-and-PIN cards (also called EMV cards for Europay, MasterCard, and Visa) include an embedded microchip that stores customer data, the idea being that the card must be present for a transaction to take place. The executive order further calls on the Secretary of the Treasury Department to ensure these agencies have enhanced security features by Jan. 1, 2015.

As Compliance Week previously reported, several companies in the retail industry already have pledged to adopt Chip-and-PIN technology by the beginning of next year, including Walmart, Home Depot, Target, Walgreens, and many more.

Additionally, American Express has pledged $10 million to replace outdated card readers at small businesses; MasterCard is pledging to provide customers with free identity theft monitoring and resolution support; and Citi is joining with other financial institutions in making free FICO scores available to customers. “I want to encourage every bank, every retailer, and every credit-card company to join them in this effort,” President Obama stated in prepared remarks made at the Consumer Financial Protection Bureau.

President Obama also directed federal law enforcement “to share more information with the private sector when they discover identify theft rings.”

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