Consumer Watch: Credit card chips and pins

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by Andy Treinen

WHAS11.com

Posted on February 11, 2014 at 5:32 PM

LOUISVILLE, Ky. (WHAS11) -- Swipe and sign credit cards could soon be a thing of the past and in this case, the United States is following, not leading the trend. We have information about a completely new credit system that could make all of us a lot safer.

One US senator recently pointed out that nearly half of the world's credit card fraud happens in the United States. Many blame an old-fashioned payment system. So now, some card companies are looking to upgrade to smart cards. Smart Cards will allow all of us to say goodbye to the swipe and sign routine and hello to credit card chips and pins.

The Wall Street Journal reports that by the end of next year, there will be a new ritual in the checkout line. You'll swipe your card into a card reader, enter a pin number, then go . . . no signature required. The new cards will be embedded with a microchip with security data that experts say will be harder to hack.

Visa and MasterCard have already announced that they'll make the switch by October of 2015. Many other countries that also had a problem with credit card fraud made the switch years ago with much success, but it's not foolproof. The Smartcard readers and pin pads are used for in-store sales, so these more sophisticated cards can't stop fraud in online shopping.

By the way, the United States is behind the curve on this one. The U.S. will be one of the last major countries to this system in the fall of 2015.

If you have a consumer issue you’d like us to look into send an e-mail to consumerwatch@whas11.com.

 

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