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Many US consumers now receiving credit cards with microchips

Following multiple major breaches, many banks are shipping US consumers new chip-and-pin cards
By: Michael Hatamoto | Hacking & Security News | Posted: Oct 23, 2014 8:30 pm
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After an avalanche of retailer data breaches, leaving millions of consumers affected, many US shoppers are now receiving new credit cards with microchips. Half of merchants are expected to support new cards with microchips by the end of 2014 - in place of magnetic stripes on most cards - as chip-and-pin helps increase cybersecurity.

 

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Chip-and-pin cards are entered into a card reader, with data encrypted using a unique security code for each transaction - cardholders required to enter a PIN number.

 

Walgreens has rolled out the new terminals already, while Walmart is expected to begin replacing most of them by next month. The chip-and-pin technology has been successfully implemented in Europe, despite the cost of sending new cards, along with purchasing new ATMs and payment terminals at retailers. The cards cost up to $2.50 each, with terminals typically ranging from $300 to $400, and the new generation of ATMs

NEWS SOURCES:Business-news.thestreet.com, Cdn7.tfindley.co.uk

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