Have you noticed there’s now a little chip on the new credit cards you’re getting? While the technology is meant to cut down on fraud, not everyone is happy with it.
New and replacement credit cards now come with a tiny computer chip embedded in the front of the card. This technological advance—available in Europe for a decade—is designed to prevent thieves from stealing information and making fake copies of cards. Instead of “swiping” the card through a slot that reads the magnetic strip, users “dip” the cards for a few seconds into new card readers.
The big difference with the chip is that, when read, it generates a unique transaction number, which is forwarded to the cardholder’s bank. With a unique code for each transaction, there’s no way a merchant can link to an account number.
Retailers were required to have new credit card readers by October 1 or else they will be to blame for fraudulent charges. Gas pumps and ATMs still use magnetic “swiping” technology. They have until October 2017 to change. But the price for the added security is lost convenience. Today.com heard from several users who aren’t very happy about the change in their cards.
One user complained that it now takes five times longer to buy a sandwich and questions how much good it’s actually doing.
Another of the critics said when she inserts her card she’s told — just swipe. Her conclusion its “Pretty useless.”