While much of the world has begun to turn away from the type of credit card that is familiar to most Americans, lenders in the U.S. have been less hasty to make the switch. However, that could soon change.
Visa, the world’s largest payment processing network, has recently begun urging more U.S. businesses to begin installing point of sale terminals that can read information on credit and debit cards with computer chips embedded in them, according to a report from the Wall Street Journal. Most of the world has already made this switch while the U.S. still relied almost entirely on the type of card with a magnetic strip on the back.
“We believe that as merchants start to move [toward the new technology] that the card issuers will see the merits, as well,” Ellen Richey, chief enterprise risk officer at Visa, told the newspaper.
A number of issuers have already begun giving out cards with both microchips and magnetic strips, but these are being granted mainly to those who frequently travel abroad.