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The Time Has Come for Smart Credit Cards

At this point in time a great many of us have heard of smart phones, but have you ever heard of a smart credit card? Smart credit cards contain tiny computer chips that encrypts the cardholders information. The encrypted computer chip makes it much harder for thieves to steal information, as opposed to the magnetic strip used to store cardholder data currently.

In addition, the would-be thieves would not only have to steal the cards data from the encrypted chip, but would also have to know the cardholder’s pin number to access it. This makes it much more difficult for thieves to access people’s information illegally.

These so-called smart credit cards have been in use in Europe for quite some time now but have not caught on in the United States… yet. The reason for that is that merchants are reticent to invest in the new technology. Their attitude is that the losses incurred are less than the costs associated with implementing the new security measures.

Credit card issuers, however, are putting the heat on merchants to implement the new security measures. Visa has announced that beginning in 2015 they will no longer cover fraudulent charges incurred with the use of magnetic strips. In other words, adopt the new technology or you’re on your own.

The magnetic strips used on credit cards now have become laughably vulnerable to theft. In fact, it is possible to get the tools (a simple magnetic reader) you need to access information from magnetic strips on the Internet. No longer does it take a sophisticated thief to access your financial information. Now even bumbling fools can do it.

Of course, for the sophisticated criminal there are ways of circumventing the computer chips in Smart credit cards. However, for now they are superior, security wise, so the dance to stay one step ahead of criminals continues.

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