Quote:
Originally Posted by LakeCleElum
Chip cards have been common in Europe since the mid-90's.
The problem is the new "Chip" cards in the US is they still have the magnetic strip also. Called a "Hybird" card.......That were most of the fraud comes from, so no more secure at all.
For a true "chip" card in the US, retailers would have to have new hardware to read the card.
Also, card companies produce cards with the strip for about $1 a card. A chip card is more like $3 per card......Some banks have chosen to pay the cost of fraud vs more to produce the more expensive card.
There is a push to require retailers to have the chip reading systems by some date in 2015.....
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October, 2015 to be exact.
Both MasterCard and Visa have stated that merchants who don't accept the chip cards by that date will be liable for the loss should a fraud occur. Conversely, if the merchant has the new chip reader but the bank does not issue the chip card, the bank will be liable for the fraud. I see the pace of the changeover accelerating in the coming months as more news breaks about the hackings and the fallout from the Target breach really begins to bubble to the surface.