WEST SPRINGFIELD, Mass. (WWLP) – Pretty soon swipes will be out, and inserts will be in. New Chip & Pin credit cards are about to become the norm at retailers nationwide, and for you.
These chips are specially designed to work with new credit card readers. You insert the card, and the new machines encrypt the chip’s data and actually verify it to make sure it’s authentic.
Currently, when you swipe a magnetic strip, traditional machines just record your data, and bill you. There’s no verification. So these machines can’t tell the difference between your card and a fake copy.
“We’ve seen dramatic drops in fraud in other markets as soon as chip cards are distributed to consumers by 70, 80 or more percent,” said Carolyn Belfany, of MasterCard USA.
Although some are skeptical, “I say technology has got a lot of good points and a lot of bad points. One person can say it’s the way of the future but a lot of other people say no… just keep it simple,” said Robin Gagne of Milford, Conn.
About 60% of stores have the new readers right now. All Retailers have must have the new card reading technology installed by October 1st. NBC news said credit card companies have until the end of the year to send you a new, upgraded card.
This is not technically “Chip & Pin” technology though, more like Chip & Sign. The credit card industry argues it’s asking too much to ask consumers to remember another 4-digit pin.
Although the retail industry says otherwise. As the debate rages on, the chips will only be associated with your signature, at least for now.