Those New Credit Cards 

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.

Source: New credit cards aim to protect consumers and banks from hackers – CNET

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…

2 thoughts on “Those New Credit Cards 

  • I have a couple cards now with the chip, but have yet to use them. The stores I go to regularly have the machines but none of them work right so they ask us not to use them. I watched someone try at Walgreens and it wouldn’t work, the clerk got all flustered and didn’t know how to deal with it. So, this roll out is not going well around here either.

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  • Hi Jane. When it is setup properly it is really easy. Insert the card, the cashier pushes one button and then you are instructed to remove the card. Yeah many terminals have the slot but are not yet programmed for its use and they probably don’t tell their clerks about that, therefore the flustered looks.

    I guess it is like everything else that requires change. Too many people resist it.
    Change is your friend. 🙂

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