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The switch is underway: Gone are swipe-and-sign credit cards, replaced by new credit and debit chip cards.
The change, which will continue throughout 2016, is intended to curb fraud and credit card data breaches, according to Louisiana Attorney General Buddy Caldwell. “The new cards offer greater protections for consumers and will help reduce the costs associated with fraud,” he said.
5 things to know
• The new cards have a small, square metallic chip on the front, which holds payment data and provides a unique code for each purchase.
• The metallic chip is designed to reduce fraud, including counterfeiting.
• Instead of swiping the cards, consumers will put it into a reader for a few seconds.
• Consumers may then have to sign or enter a PIN. But with each transaction, the chip generates a unique code needed for approval.
• Because the security code is always changing, it’s much more difficult for someone to steal and use the code.
The change from scan-and-sign to chips shifts the blame for fraudulent transactions from credit card companies or banks to retailers. However, Caldwell warns, stolen or lost cards may still be used in stores and online. Consumers are still urged to guard their card information closely and check statements for suspicious activity.
Chip cards are replacing conventional credit and bank cards.
