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The Federal Reserve Bank of Kansas City has released a report outlining the advantages to adopting the use of smart cards in the United States. Currently, debit and credit cards require the cardholder to authorize a payment through a signature. Some merchants may authorize payments through use of personal information such as address or telephone number. The issues with these current methods allow identity thieves to fraudulently use stolen cards if they have acquired the correct personal information.

Smart cards differ in that they contain a microchip that increases security and makes payment more efficient. This could make consumers less vulnerable to fraud and allow merchants to save on fraud prevention efforts. In order to adopt the use of these cards in the U.S., industry leaders would adopt the cards and new security standards, card issuers must agree to these measures, and market incentives that hinder adoption and security must be overcome.