Have you had your credit card info stolen recently?
Its happened to me a couple of times in the past year, and its annoying as hell.
Or maybe youve heard of people talking about chip and PIN technology.
Heres how these new cards work.
Forget the Stripe.
Youll Have a Chip
With a traditional credit card, the data associated with your magnetic stripe doesnt change.
If a hacker steals that code info, its useless.
Other countries have been using chip cards for years, and its been really effective in bringing down fraud.
In the States, most new cards wont come with required PIN numbers.
Sushil DaSilva, co-founder ofHighline Software, says we willeventuallyuse PIN verification, probably within the next few years.
Its uncommon, but still something to keep in mind if youre traveling.
Most machines, however, will simply accept your signature.
Thieves could still use your EMV card for online purchases, too.
The real problem is that magnetic stripes can be copied and cloned at will.
Basically, this technology will protect against cloning and copying your card.
Since each transaction is unique, thieves wont be able to skim your data and replicate it.
Some retailers call it dipping.
You might have already seen this technology at some stores already.
Once you dip, you leave the credit card in the terminal until your transaction is complete.
If they dont, the retailers or issuing banks will be on the hook for any fraud transactions.
According to Creditcards.com, debit cards will roll out at a slower pace.
Experts expect that 96 percent of debit cards will switch to this technology by 2017.
Its simple enough to use, so it shouldnt take too long to get used to dipping over swiping.
Its a small price to pay for tighter security.
Illustration by Tina Mailhot-Roberge.
