McLEAN, Va. (6/9/15)--The next credit or debit card you receive from your card issuer might look different from the one you currently are using. You’ll notice a small “chip”--part of the migration to EMV technology--embedded in the plastic.
Older cards use a magnetic stripe on the back to permanently store financial information, making it an easy target for data thieves. Forty-seven percent of the world’s credit card fraud occurs in the United States, where magnetic stripe cards are still common. As more consumers use the new chip cards, this percentage should decrease (Roadwarriorvoices.com June 1).
The EMV chip creates a unique, one-time transaction code. If a hacker should steal the chip information from a transaction, it would be useless because the transaction code is only valid for a single purchase.
Here’s what you need to know about the new cards, according to CUNA’s consumer education editors:
For related information, read “What Will EMV (Chip) Credit and Debit Cards Mean for You?” in the Home & Family Finance Resource Center.