New credit card technology makes buying more secure
Half of the world's credit card fraud happens in America even though the country handles only about one-quarter of all credit card transactions
Posted — UpdatedLately, replaced credit cards have looked a little different because they have a little metallic chip. The chip and pin cards have been used in Europe for years, but now banks are rolling them out here with the hope of reducing fraud.
Half of the world’s credit card fraud happens in America even though the country handles only about one-quarter of all credit card transactions. That's why American banks are issuing the new, more secure cards that look and work differently. The chip technology is called EMV, which stands for Europay, Mastercard and Visa.
“There's no additional personal or privacy information that's being stored in that chip,” Eriksen said. “For now [with] transactions made over the phone or online, nothing changes.”
Another bonus is that with other countries already using chip technology, it will be easier to use an American credit card when traveling.
It is expected that not everybody will be ready for the October 1 deadline, and it will still be a few years before PINs are required to add an extra level of protection.
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