Why Your Next Credit Card Should Have a Chip?

Why Your Next Credit Card Should Have a Chip?

Chinese online retail giant Alibaba CEO Jack Ma (C) waves as he arrives at the New York Stock Exchange in New York on September 19, 2014. Alibaba is poised for a record-breaking stock market debut on September 19, with shares priced at $68 in a public offering that could be valued at $25 billion. The company will step into the spotlight on the New York Stock Exchange, priced at the top of the $66-$68 per share range announced earlier this week, according to documents filed with US regulators. AFP PHOTO/Jewel SamadJEWEL SAMAD/AFP/Getty Images

If you’ve traveled outside the U.S. within the last few years, you’ve probably noticed cashiers scanning credit cards in a very peculiar way. Rather than the swipe technique we’re accustomed to in North America, merchants in many other countries insert a card into the machine, just as you would at an ATM.

Credit cards used abroad include a technology called “Chip and PIN,” in which account details are stored on a secure chip on the front of the card, rather than in the much more vulnerable magnetic strip on the back. Most of these accounts also require a four-digit PIN code with every credit transaction, like debit cards do in the U.S., making it much more difficult for thieves to make fraudulent purchases.

Following the major Target breach earlier this year, credit card issuers in the U.S. are finally beginning to issue Chip and PIN cards to their customers. Barclaycard was the first bank to adopt the new technology, shipping cards to new and existing account holders beginning just last month. A few other products, such as Chase’s Sapphire and Hyatt cards, some Citi AAdvantage cards, and select offerings from American Express, have included a similar technology, called Chip and Signature, for quite some time.

On the surface, a Chip and Signature card looks identical to its PIN-equipped counterpart, but instead of typing in a passcode, you’re required to sign a receipt. Businesses that can’t process swipe cards can usually accommodate Chip and Signature, but the cashier may be caught off guard when they’re prompted to ask for you to sign. In short: don’t expect a flawless experience across the board.

This Paris metro is notorious if you are incompatible with traditional U. Azines. –based cards, making it very difficult to have a ticket when you don’t get cash. Plenty of smaller vendors all over the world may not support purchases as well, but the French capital’s public transportation system is the most infamous example. While you’ll have trouible with Chip and Signature at selling machines in Paris, PIN playing cards should work fine. If you are preparing a trip overseas, the Barclaycard Arrival is currently your best option for ensuring compatibility abroad.

Even though you’re able to get a card today, it’ll be a few more years before merchants begin control chip transactions locally. In the particular meantime, you’ll still be capable to swipe and sign using these types of newer cards, so there’s really no downside if you wish to embrace the new technology instantly. Replacement Arrival cards will ship with the chip, but if you would like one sooner, a customer service rep can arrange to send one out free.

0 Reviews

Write a Review


Read Previous

Amazon eyes online sales boost through ‘Fire’ smartphone

Read Next

Reasons to Visit Nantucket

Leave a Reply

Your email address will not be published. Required fields are marked *