Chase made it official Tuesday, saying its plans mean all debit cards, credit, prepaid and ATM cards will be replaced with chip-enabled cards designed to keep them more secure, reports the Chicago Tribune.
Many other countries have long used such technology as the standard, while the U.S. has relied on cards that have magnetic strips. Those strips are veritable mines of personal information, which can be copied or stolen easier than microchipped cards.
Every time a card with a chip is used, it triggers a one-time code that validates the transaction, something that can’t be copied and used to easily steal account information. Instead of swiping cards like we do now, these cards are inserted into a slot and let there during the transaction. It’s only complete once a person either signs for it or inputs a PIN, the latter of which is considered a better method.
The new debit cards from Chase will still include magnetic strips, however, because not all retailers have chip readers, though more larger stores are expected to install them as microchipped cards become the norm. This means that if it’s swiped instead of inserted in a chip reader, it could still be vulnerable to having its strip copied or counterfeited.
A Chase spokeswoman said “several” of its credit cards have been reissued with microchips already, and the rollout will continue throughout the year. Card customers can also request a new card sooner if they don’t want to wait for it to be sent.
Chase to reissue debit cards with microchips [Chicago Tribune]
by Mary Beth Quirk via Consumerist
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