New Embedded Micro-Chip in Debit and Credit Cards Protects Customers and Reduces Fraud

This Added Layer of Security Will Store Account Information More Securely Than the Traditional Magnetic Stripe, Making It Extremely Difficult for Thieves to Counterfeit or Copy
Audio: 
Doug Johnson, Senior Vice President, Payments and Cybersecurity Policy, American Bankers Association

 

(Washington, DC, Friday, September 18, 2015) - Banks across the country are issuing new credit and debit cards with an embedded micro-chip in an ongoing effort to protect their customers and reduce fraud. This added layer of security will store account information more securely than the traditional magnetic stripe making it extremely difficult for thieves to counterfeit or copy.

The computer chip – a small, metallic square on the front of the payment card – assigns a single-use code to each transaction making the data useless to criminals. The new cards, most of which are being issued as current cards expire, will still have a magnetic stripe in cases where the merchant does not have an activated chip reader.  The chip card will work differently – customers will need to learn a new way to use them and how it improves their security.

During these interviews, Johnson can discuss:

  • Why are banks issuing chip credit and debit cards?;
  • How do I use the new chip card?;
  • When will I get a chip card?;
  • If there’s another big breach am I protected?; and
  • What other new technologies are coming to protect my payments?
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