By October 1, 2015, credit card transactions in the United States are going to require technology that has been in use elsewhere for years: a chip built into the card, promising better security against fraud. The old way, swiping a card with a magnetic stripe through a machine, will be phased out. And it will probably happen quickly; after October, retailers using the old swipe terminals will be liable for fraudulent purchases.
US credit card companies say it’s about time, even though they’ve been among the most reluctant to adopt it.
“The chip by itself will dramatically reduce counterfeit fraud, which is the most predominant fraud type today,” said Oliver Manahan, MasterCard’s vice president of emerging payments. More