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New Credit Card Smart Chip Technology

All around the world and in particular the United States as of late, the notion of credit card fraud and identity theft has been a rampant problem. Other countries around the world have addressed the issue by adopting new technology for their credit card systems that make use of a combination of smart chips instead of the typical magnetic strip that is often seen on the back of credit cards in the United States at this point. The technology in the US is slowly changing and there are plans to begin to incorporate new credit card smart chip technology that will involve some changes on your part as a credit card user.

What the Technology Has to Offer

The old technology of having the magnetic strip on your credit card is one that is easily duplicated and leaves you open to a great deal of credit card fraud. Thieves can quickly and easily make copies using your credit card number with phony cards with the proper magnetic strip and steal your credit card and use it often before you even become aware of it. Most people in the United States today have had the experience of having their credit cards frozen or dealing with fraud detection departments of credit cards for endless amounts of time on the telephone because of this experience. The new technology will make use of a chip within your credit card instead of the magnetic strip, making it that much more difficult to duplicate.

What is Different About the New Technology

There will be some changes to the way that you have to use your credit card in order for this to happen, which has slowed down the integrated change into stores across the United States. Credit card companies and retailers feel that people are reluctant to commit to any type of change when it comes to their credit cards, and the new system is different and takes a little bit longer, which some people may find to be more of a nuisance. However, you will get a better level of security and significantly decrease the chances of fraud being committed on your credit card. Instead of swiping your card on the side of a credit card machine at the cash register now, you will be able to simply insert your card at the bottom of the card terminal and punching a PIN number to complete your transaction.

For the small bit of inconvenience that may occur as a result of getting new cards and having a new method introduced, the higher level of security will certainly be worth it for the majority of people. The United States has lagged behind other countries in regards to credit card technology and security and while this change is not due to be completely integrated until the year 2020 there will be some changes that occur over time to the new cards you receive from the new systems used it retailers so you can begin to get used to the system and start using it safely and securely.