What to know about the new credit and debit chip cards

Coming to a wallet near you: new credit and debit chip cards. They’re part of a nationwide shift by major card issuers to offer added security against fraud. The new cards look like your old cards with one exception: they have a small square metallic chip on the front. The chip holds your payment data — some of which is currently held on the magnetic stripe on your old cards — and provides a unique code for each purchase. The metallic chip is designed to reduce fraud, including counterfeiting.

Here’s how it works: To buy something in a store, instead of swiping your card, you’ll put it into a reader for a few seconds. Then you might have to sign or enter a PIN. With each transaction, the chip generates a unique code needed for approval. The code is good only for that transaction. Because the security code is always changing, it’s much more difficult for someone to steal and use.

There will be no change in the way you use your card online or by phone. That means chip cards won’t prevent crooks from using stolen card numbers to buy online or by phone. So it’s a good idea to still guard your card information closely, and check statements for suspicious activity. Your consumer protections if there’s a problem remain the same.

Banks and card issuers have been sending out new credit and debit chip cards, usually as existing cards expire or need replacement. If you haven’t gotten your new cards, don’t worry. The rollout will continue at least through 2016. If you want to know when your new chip cards will arrive, contact your card issuers at the phone numbers on your cards.

 

Leave a Comment

Comment Policy

This is a moderated blog; we review all comments before they are posted.  We expect participants to treat each other and the bloggers with respect.  We will not post comments that do not comply with our comment policy.  If a submitted comment includes a link to a commercial website, we will delete the link and post the comment. We won't edit comments except to remove links.

We won’t post:

  • spam or off-topic comments
  • comments that contain vulgar language, personal attacks, or offensive terms that target specific groups
  • sales pitches or promotions
  • comments that contain clearly misleading or false information
  • comments that contain personal information, like home addresses

Comments submitted to this blog become part of the public domain. To protect your privacy and the privacy of others, please do not include personal information. Also, do not use this blog to report fraud; instead, file a complaint.

If you have questions about the commenting policy, please contact us.

Read Our Privacy Act Statement

It is your choice whether to submit a comment. If you do, you must create a
user name, or we will not post your comment. The Federal Trade Commission Act
authorizes this information collection for purposes of managing online
comments. Comments and user names are part of the Federal Trade Commission’s
(FTC) public records system, and user names also are part of the FTC’s computer
user records system. We may routinely use these records as described in the
FTC’s Privacy Act system notices. For more information on how the FTC handles
information that we collect, please read our privacy policy.