After the large security breaches in 2014 the need for implementing tighter security measures is at an all time high.
This year, many banks will be issuing new chip-encoded credit cards as an extra level of security. The new cards will use embedded computer chips instead of traditional magnetic strips. The embedded chips will be encoded with a unique identifier code making it much harder to duplicate account information and thereby significantly reducing credit card fraud.
Use of the chip and pin card technology is widely accepted in Europe but U.S. retailers have resisted the change due to the initial expense of upgrading their equipment. However, come October of 2015, the liability for fraudulent charges will shift from the banks to merchants so if the retail establishment has not adopted new card readers, they could be held liable for the fraud.
Mallory Duncan of the National Retail Federation suggests that banks should add an additional security measure by requiring PINs for credit card use. Per Duncan, U.S. banks are not willing to add PINs to credit cards because it would add an additional step for consumers.
New developments have also suggested that better credit card technology is coming soon.
Listen to the full story by NPR.
