In the coming year, banks in
Many big banks and credit unions have already been issuing chip-enabled credit cards to customers who travel overseas, where the technology is in wider use. The switch to chip-based debit cards has been slower, however, because of more complex payment networks used by those cards, said
A spokesman for Chase said the bank already offered numerous credit cards with chips and expected most of its debit cards to be chip-enabled by the end of next year.
Citibank will begin issuing debit cards with chips in 2015, it said in an emailed statement. Citibank said that all of its new consumer credit cards were issued with chip technology, and that the bank was on track to have half of its portfolio of consumer credit cards chip-enabled by the end of this year. Most customers can request a chip credit card from the bank online or by calling customer service.
There is a catch, however. Even if customers get a chip card now, they may not easily find a store that accepts it because retailers in
Most big stores are expected to have chip-compatible readers by
Because of the staggered adoption, most of the chip cards being issued will have the magnetic strips as well, so they can be used even at stores that do not have upgraded card readers, said
Here are some answers to questions about chip cards:
â– Is there anything different about how the chip cards are used?
Unlike magnetic stripe cards, which are ''swiped'' at the cash register, chip cards are ''dipped'' into a reader and remain in the device for a few seconds while the transaction is approved. Customers need to remember to remove the card.
â– Should I wait for my bank to replace my debit card, or ask for a chip card now?
â– Will chip cards make online purchases safer?
Chip cards mainly protect against fraud when customers are shopping in a store; they're less helpful for online shopping, since consumers are not using the actual plastic. In fact, analysts suspect there may be an uptick in online card fraud when chip cards become more prevalent, as criminals seek alternate ways to steal card data. So online stores may also consider further protections, like a special code sent to a customer's mobile phone that must be entered to complete a purchase.
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