Chip Cards

Chip Cards

The only consequence seems to be that if retailers are not capable of accepting them by October 1 they could be responsible for fraud. It seems like the United States is way behind all other countries in using the this technology.

So what is the big deal about chip cards. When using a chip card your credit card number is not transmitted instead a random number combination is used. The theory is that if your credit card information is intercepted your actual credit card number will not be obtained by the thief.

When using your chip card you do not swipe it like the old way. Instead you insert the card into a reader and leave it there until the transaction is complete. You might be also required to sign like before depending on the requirements and rules of your credit card company. There is no doubt that a chip card is more secure than the magnetic strip card. However, for a period of time credit cards in the United States will have both the chip and magnetic strip. The real security should start to come when we can eliminate the magnetic strips from all credit cards.

So does your new chip card provide any additional security for online purchases? The answer is currently no. However, I believe that credit card online purchases are going to change for the better. It could come in the way of card readers attached to our laptops or desktops. Or maybe payment companies such as PayPal® have the answer.

For mobile devices Apple® Pay and Android® Pay are two new options to pay for items using your smart phone. This is like your smart phone taking the place of your credit card. They are both used with pin numbers and fingerprints. Which offers protection in case your phone is lost or stolen. Time will tell if these two new technologies are successful or not.

I think it would add another needed level of security if we had to use a pin number with chip cards.

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