The recent credit card scams at Target and Neiman Marcus are causing major credit card companies to question the current system.
Right now, credit card fraud if easy. The magnetic strips on the back are unprotected and the same data is read every single time the card is swiped.
Card companies are calling for new EMV technology which is a new chip-based card that will require a four-digit pin number.
All merchants will be required to accept the new cards by October 2015, or they will be held responsible if fraud occurs.
"Definitely benefits the consumer because the consumer does not have to worry about anybody skimming their card, losing their card data," said Allan Noe, President and CEO of Approval Payment Solutions. "They don't have to worry about fighting with their issuing bank to give them a credit back or a charge back, so its going to take totally the burden 100% off the consumer and shift it to the merchant that doesn't apply."
Noe says the change will be expensive but, as it has in other countries, it should significantly reduce credit card fraud here in the U.S.
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