U.S. consumers on Thursday will have a new way to protect themselves against cybercrime. Instead of the familiar magnetic stripe, their armor will take the form of credit and debit cards with a built-in chip, which retailers must be able to read as of October 1….
Experts say the slow rollout could be due to the cost of new card-reading equipment. Merchants must weigh the expense of buying new payment systems and training employees on that gear against the unknown hit from fraudulent charges. Some may even consider their new liabilities the cost of doing business.
One of my personal credit cards just got hit with a fraudulent charge from someplace over in Africa I think, so that one had to be cancelled and replaced by a new number. This is the second time in the past year that it has happened but to different cards. The credit card companies are getting pretty good at spotting these guys early so no great damage is done. It is hard to say how they got my number, maybe it was from a list sold to them?
The new chip cards as cited above does a good job of preventing this from happening. Every time the card is used it generates a one-time number. Some algorithm generates these new numbers so they are pretty much impossible to duplicate. Like so much else it seems these days, the chip cards have been in use in much of the rest of the world for a several years now and are finally being implemented here. When we took our month long trip to Canada in 2011 there were some businesses that hesitated even taking our cards with magnetic strips. We are the inventors of much of this type technology but seem to be the last implementors. Strange….
I know this article said that retailers must be able to read the chip cards by October 1 but I still find the majority of them unable to do so. Those that don’t are not mom & pop places but national chains. According to the list I put out last week we are, believe it or not, pretty far down the list of even cell phone usage. Credit card fraud is on an exponential rise due to all the hackers out there stealing numbers in vast quantities. It will only get progressively worse as time goes by. Canada and Europe has been using the chip cards for almost a decade now and therefore are for the most part immune to this hacking. Why does it seem to be that we in the U.S. have to go to the brink on almost anything before we take action? While I love my country that is one area I just can’t understand…