It’s official. October 2015: The end of magnetic strip cards.
While it was expected that the change over to EMV credit cards or “chip cards” would happen sometime in 2015, Visa and MasterCard have committed to replacing the old swipe system by October 2015. The tradition of swiping a card and signing on the line is coming to an end. By next October, the new cards will be inserted and a pin entered instead of signing. Many other countries have already adapted to this technology for years and our more vulnerable cards are considered the reason that America accounts for almost half the total credit card fraud world wide.
After the large scale data breaches that happened in 2013 at Target, Neiman Marcus and others, a Senate Judiciary Committee hearing was held on Feb. 4th, 2014. The conclusion of that meeting was once the country transitions to the chip card system these types of hacking attempts will be much harder to pull off. Another advantage is the check out person does not need to handle the card which also reduces the chance of theft. In the Target attack the point-of-sale machines copied the data from the magnetic strips. With the new cards, the number on the chip is useless without the pin which can be changed at any time.
Both Visa and Mastercard are leading the way with this new goal for October, 2015. Many of the Point-of-Sale systems and credit card terminals our customers use will already be able to accept the new smart cards. If you are looking to upgrade any of your equipment in the near future make sure they accept the new cards. Also, if you have any questions about your current equipment we are here to help! 1-866-651-3068
For more info about what an EMV or chip cards is and how it works read our article about it here: More info about EMV Cards.