Saving, investing and making money with technology

Changes in Chip and PIN Cards for Everyone

Major changes, designed to help your money stay safe from thieves, are coming to your wallet soon. If you live in the United States, or operate a business there, you will see the changes in 2015. Chip and PIN cards will be implemented to replace the usual magnetic strip cards currently used.

Changes for Business

Upgraded credit card terminals that are chip and PIN compliant must be switched to by October 1st. If a business opts not to switch and then experiences credit card fraud, could be held responsible and pay the fraudulent charges made on the card. Smart business owners will do the research now to ensure they make the appropriate changes. It’s so much better to change as quickly as possible, so that even if the adaptation takes longer, it can still be finished in a timely manner. Plus, it takes some time to get used to change. It’s never too early to call in an expert to help with the business change.

Changes for Consumers

As international criminals have exploited the antiquated credit cards we have been using in the United States, we have come to our senses about the true costs. Changes to the magnetic-stripe technology had to be made. The good news is that most countries outside of the United States, and the majority of Europe have embraced this type of card for some time now. So, if you are traveling out of the country, using your new credit card will be much easier.

The card will work in a manner similar to your debit card. Instead of requiring a signature, a PIN will be used. As the card in is the machine, you will be asked to enter that PIN. The machine will then verify with the chip on the card to authorize the usage.

Changes for Card Issuers

Most major card issuers already have the updated cards. Some credit unions are also offering them. You can check with your issuer and on some online lists to see which issuers provide true Chip and PIN cards and which supply EMV chip cards for Americans.

Changes for Everyone

EMV cards are technically Chip and signature cards as opposed to the Chip and PIN cards issued in Europe. Both increase the odds of your funds being secure. Both require new cards to be issued by the card issuing company. Both require companies to get new machines to process the cards.

The switch may take as much as $8 million to complete. Businesses, both small and large, will have to spend the money, time and work hours to change equipment and software and retrain their employees. Issuers will spend funds on reissuing cards. Hopefully criminals will feel the pain as funds are much more difficult to steal.

Anna Johansson

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