For many years now, credit cards in the United States have had magnetic strips to be used in retail situations. The strips enable them to be read by credit card machines and accepted as payment in businesses. These strips are easily counterfeited and pose several security risks. Many countries have already started using credit cards with chips installed rather than magnetic strips. Chips are more secure to use and aren’t as easily counterfeited. The United States is going to start requiring chips in credit cards for increased credit card security as of October 1, 2015.
The United States is one of the few remaining countries that still allow for magnetic strips in credit cards. These strips have been used in the US since the 1970s, and until recently, the country had been reluctant to change. Other countries have been using chips in their credit cards for years, but the United States had several reasons for avoiding switching over until now.
- The system that the United States uses to process credit cards is very complicated, and replacing it will be costly and challenging.
- Businesses have not wanted to switch over because the terminals needed to run the new credit cards are expensive, and upgrading will be a major expense.
- Credit card companies haven’t wanted to use chips in cards because they cost more to make than cards with magnetic strips.
Regardless, due to recent security breaches and pressure from the public, the United States is scheduled to require the use of credit card chips as by October 1, 2015. This type of card will be more secure to use and less easily counterfeited. As with the current system, people will either be required to sign for purchases or enter a passcode. It is expected that the country will only be using passcodes and not requiring signatures by 2018.
Credit card purchases in the United States are going to become more secure by October of 2015. The long-used magnetic strips will be replaced by electronic chips instead. This type of technology is not as easily copied or forged. Consumers will have less risk of having their credit card numbers stolen or accounts hacked with this new technology.