If you haven’t gotten one already, you can expect to see a new credit and debit card in the mail soon.
The cards have a computer chip directly on them, and retailers will be using a new card swiping system for them. Experts say it will reduce the 5.5 billion dollars lost annually to fraud in the U.S. Fox 25-48’s Abigail Hantke has the details.
Magnetic strips on credit cards are becoming yesterday’s news as increased security measures hope to decrease fraud.
Consumer Victoria Strumm says card safety is her number one concern.
“I think that’s the most important thing, I don’t like to use my credit card any place that’s not safe.”
New cards now contain a computer chip inserted into the card and require people to ‘dip’, not ‘swipe’.
Target is one of the forerunners for installing the new card reading system.
“It is a little different, it does have a slot at the bottom, so you’re no longer slide it on the side.”
The new credit and debit cards have a little chip inserted into them, and it’s a pretty simple process so instead of swiping, all you do is insert your card, wait for a second and then pull it back out. Unlike cards with magnetic strips that can be copied, chip cards create a unique transaction code that cannot be used again.
“It does take a little bit longer to process a transaction, but I think the guest once they understand the benefit of removing the magnetic strip. They really understand that ok this is an important process and they’re willing to wait that extra couple seconds longer for that extra layer of security.”
“If I can be safe, even if it took me five minutes, I would do it.”
Abigail Hantke for Fox 25-48 News at Nine.
If you haven’t received your new chip card yet, you’re not alone. According to a credit card report, 6 in 10 people do not have their cards yet, And it aligns with businesses as only an estimated 5 to 10 percent actually have the chip card readers so far.