In an effort to make it more difficult for crooks to use someone else’s account information to rack up fraudulent credit card debt, American financial institutions may soon begin offering a more secure credit card technology to consumers.
At the recent Visa 2011 Global Security Summit, it appeared as though many U.S. credit card issuers would soon begin issuing so-called “chip and pin” cards that carry new, more secure technology, according to a report from the financial industry news site the Credit Union Times. This technology, which is the standard nearly everywhere in the Western world, is far more advanced than the magnetic strips on U.S.-issued cards, which still utilize technology from the 1950s.
The new cards are called “chip and pin” for a simple reason: they contain a secure microchip that holds all account information, and require users to input a password before authorizing use. They are already the norm in Europe, which is why some lenders have already begun offering the new cards to customers who regularly travel overseas.