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What to know about the new credit and debit chip cards

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Coming to a wallet near you: new credit and debit chip cards. They’re part of a nationwide shift by major card issuers to offer added security against fraud. The new cards look like your old cards with one exception: they have a small square metallic chip on the front. The chip holds your payment data — some of which is currently held on the magnetic stripe on your old cards — and provides a unique code for each purchase. The metallic chip is designed to reduce fraud, including counterfeiting.

Here’s how it works: To buy something in a store, instead of swiping your card, you’ll put it into a reader for a few seconds. Then you might have to sign or enter a PIN. With each transaction, the chip generates a unique code needed for approval. The code is good only for that transaction. Because the security code is always changing, it’s much more difficult for someone to steal and use.

There will be no change in the way you use your card online or by phone. That means chip cards won’t prevent crooks from using stolen card numbers to buy online or by phone. So it’s a good idea to still guard your card information closely, and check statements for suspicious activity. Your consumer protections if there’s a problem remain the same.

Banks and card issuers have been sending out new credit and debit chip cards, usually as existing cards expire or need replacement. If you haven’t gotten your new cards, don’t worry. The rollout will continue at least through 2016. If you want to know when your new chip cards will arrive, contact your card issuers at the phone numbers on your cards.

Blog Topics: 
Money & Credit

Comments

Why is it now that you cannot use your debit/credit card as a credit card since the machines that we use do not give that option any more. When you use it now it will accept a pin number, we have lost the choice of credit or debit

that sucks I know we are slowly losing our freedom little by little next in line is us people to be chipped.

The magnetic black swipe on the card will be phased out in 3 years. I will still monitor all my transactions. EMV is Euro Pay Visa Mastercard sysytem. If you loose your card report it stolen ASAP.

Ok, received several new credit cards in the mail lately. Mostly because retailers are moving over to the EMV chip technology in them. However, here's what has personally happened to me and why I personally decided to close down many of my credit cards I no longer need or use. So recently about three weeks ago let's say it was about May 1, 2016 ( near this date) I received a Chase Visa Disney Store card. I remembered getting this card in the mail thinking, gee's I didn't even remember I had one. I thought I know I haven't used it for ages since or Disney store went out in a mall near us. Brought the card down stairs put it in my safe to locked it up w/ other cards I use occasionally. Now May 11, 2016 comes along and a statement comes in the mail the Chase Disney store one. I almost shredded this statement up without ever looking at it I knew I hadn't charged anything on the old card or the new one that just came. But, Fraud is so prevalent now, I decide to open the envelope up and just make sure it showed nothing was owed. Low and behold credit card fraud. A charge made ( small amount). Looked up the business the charge came from online and it wasn't mine. Called that company and they tell me some interesting things alright. First, it was my own credit card company of Chase that allowed that charge to go through with the wrong name ( not mine), not my address. Next, Chase Fraud dept admitted they saw it was manually entered and not my info. They claim people can use their own credit card for online purchases and have them shipped to another name and location. Oh and all that pull about not being reasonable as a consumer for credit card fraud think again. Because that's when companies like Chase tell you there giving you a temporary credit until investigation for the fraud occurs but they don't give you the credit. No instead I received a letter that never mention I called in on May 11th about Fraud. My letter said basically we have closed your account as requested, you still have an outstanding balance of X dollars, also interest will still occur, please keep in mine that other outstanding charges maybe pending yet to your account and if you have automatic charges deducted this will affect your balance owed as well. Then it goes on to say, What to do next: Pay off your balance owed, again states the small amount owed ( never says it's a fraud charge I called in about). Then goes on to say destroy all cards etc..Go I called the business back that the fraud happened with, on there website. I was assured again by this business they corrupted and deleted the fraud account and sent back a refund to my account. Chase reps denied this refund the very day it came in , the very next day May 12th. Finally after telling them I would get Mesa police involved or an affidavit from that business to prove they gave me a credit they say yes, a credit came in. I told them great then please send me a letter that you have that credit showing to my account now. No they wouldn't, then send me proof that I did put this in a FRAUD complaint, they wouldn't, then send me an updated statement, they wouldn't. So I go to the local police yesterday to report the Fraud and Chase. He does a Fraud report, with mostly my info and checking up on my being ( my license the cop called in to check, why I don't know)? Then hands me a hand written report number. Tells me if I wish to go after Chase Bank it's a civil matter and I have to hire and attorney. By the way the police and Chase can find out my full crooks name/address from the business that took the fraudulent charge. Will they with a subpoena "no" of course not. Oh and pin numbers better have those protected if your home is ever robbed as consumers we're all 100% liable for any theft done with a pin being used! Oh there's loads credit card companies don't tell the consumers, like the EMV cards can be read right through a mailing envelope and clones( possibly) but definitely used in my case at least once so far. Either by a crook in the postal system or a crook right at Chase ! Now Chase Bank will say but hackers are out there 24/7 on the deep web running their computers randomly finding active credit card and debit card numbers. Folks my point is there is no safe guard what so ever and probably never will be. But, I have said for years the crooks if I shop online can't steal my thumb print, a strand of my hair, a swab of my own mouth DNA. I'll use software for the thumb print to scan it in to my credits , or my swab DNA symbol to swab on the computer screen, thumb print to my computer screen what ever the world it takes creditors need to take the steps necessary now and pay the huge price. Because I don't know about you consumers but I'm shutting down my credit almost every day now more and more cards get cancelled. Also our banks are vulnerable doesn't anyone want to complain non-stop to our banks when you call in, when you visit them. Technology is here and well frankly it stinks now doesn't it. Hackers ruining the economy, our jobs, our security for safety ( meaning more then just security with cards, everything runs with computers now and it's plain frightening)!

Whenever I call a company I write down the day and time of the call and get the person's name that I've talked to. Also, I was trying to find out the benefit of the new chip and the only thing that I've found out was that it benefits the banks or credit lenders because the risk falls back on the merchants. So related to your post, the banks are chucking responsibility and the chip is not really a security measure for the consumer....because if someone stole your card....how would anyone know that it's not your card. Even with a signature. I've had several low purchases with my card that I don't even need to sign for.

I have to agree. It's just plain too easy for anyone to use credit/debit cards chip or not. I've read a lot about the new chip cards and how they don't even ask for your pin and/or even a signature either. So what's so great about them? Also how many banks don't want to bother with your fraud problem if it's not a very high amount that's been stolen from you. If there's anyone out there that can tell what's good about having this new chip in card, please please let us know. Thanks & good luck to all honest citizens out there.

retailers are not allowing debit card users the option to use the chip debit card as a credit card. thus when using it as a debit card the consumer is charged a fee!

Yes right.but I never apply a credit card in my life.i own capital one debt card.but I never use yet .i don know was declined,

Will Someone Please Answer The Question With An Honest Real EVERYDAY statement. The one-time code can not protect us, as a USER. Real life: I use my mothers card; I get food at on place, gas at another place, a drink at another place, ...and so on and on. The user is not getting any MORE protection in any way! (If it was under are skin, there would be life an danger for the user). Generate a many one-time codes as you please; It helps us NOT! I think you are talking about secure private/public codes.,, like on a two-way system. Please use a real, everyday example. For the user.

you know I have said the same thing. I do not like repeat do not like the chip in card. It offers you no security on your end it only protects the banks from forking out money for frudulant charges. What info does the chip carry, name ,address, bank routing number, also maybe your ssn. when you google it no answers come up hmm.

What does the "US" in US DEBIT mean? I see this showing up when using my bank card as debit.

It's an abbreviation for United States.

I do not want these new cards!!!!!!!!!! they bring 0 security upgrade !!!!!!!!!!! Can i refuse them from my bank?

If this is your wish, I'd go to your local branch, obtain a current balance statement, cut up the card in their presence, and state that apart from paying off the balance, no more purchases on that card would be made.
When the balance reaches ZERO, close out the account. They only respond to things affecting their "bottom line".

With the implementation of these devices, it makes obtaining an RFID wallet a necessity; so some stranger with a scanner passing near you cannot hijack your personal I.D.

I already have one. Prior to this, one could punch out the chip so only by swiping the card would a transaction be completed, as the card could not be scanned. I remain unimpressed by this forced technology.

The processor for the POS terminal at the Cy-fair pet clinic in Houston, Texas refuses to allow chip transactions. The receptionist refused to identify the processor.

Will I still have the option to use the old way I ask because the cashier at Lowes said that I can not swipe my card because it is chipped It can only be used one way only.

Some businesses have payment terminals that accept the chip card. Others have payment terminals that still accept a swipe, instead of a chip.

Most major retailers and grocery stores have converted to the chip reader taking away consumer payment options and offering no proven safety increase in the process.

I'm all for increased security. But not at the expense of consumers choices. First, the chip readers should still offer consumers the option to choose between debit or credit for their transaction. If they have a debit card with a credit logo on it they should be able to choose to use it as a credit card.

Second, the security feature should be better explained because right now there is no proof that the chip actually gives any level of additional security.

I can do without this modern technology If cash is still accepted I will use it. Change is not always good.

So I get my new replacement card but they won't let me activate it..what's the next step?

Why aren't the credit card processors getting upset about the forced use of cards being used as debt only. If I use my debit card and am given the opportunity to use it as credit the retailer pays about 2 percent of the sale to the processor. If it is used as a debt card the retailer only pays a flat fee of about 20 cents. Also if I use the debit card as credit I get an explanation of where my purchase was made. When used as a debt it only say POS and amend of address.

We are currently waiting for the bank to return our money stolen through an ATM the other week. My husband's card has never left his person and it has only been used at the same grocery, same gas station & our bank's ATM. The card was never in the mail as the bank produced it when we opened the account. The theft occurred the same day he withdrew funds at our bank, in Orlando FL, 7.5 hours away, from an ATM.

Credit/ debit cards with chip should not be authorized with only the card number and a phone number. Purpose is to verify with the chip technology and your pin. I had first fraud experience 12/3/16 at national chain drugstore where I have received prescriptions for 20 years. Suddenly, my credit/ debit card are at home and never loaned to anyone. Now I discover by checking my online checking account daily that there is a pending transaction at my drugstore for purchase. I contact Drugstore immediately 10 pm and spoke with store shift mgr, informed him I was not in store nor picked up any prescription as noted on my bank acct. He looked at video at time of transaction & said was a card with my number was used. Told him I had my card in my possession & never given to others. I reported as fraud immediately to my bank & the local sheriffs office. My funds returned by bank, however, I still don't know why the drugstore would accept my credit card number which now has a chip from my bank with only the number & my local phone number. Lord knows how they got both my credit card # and Phone number unless inside job at the Drugstore chain.

I read that some stores and restaurants don't have the new scanner for the chips and should not be used at these stores!

In our family of seven we have had five of our accounts hacked with these new cards. My account was drained of 1200 at a western union, my daughters had hotel withdrawal from overseas. Don,t see any improved security.

Why is it that when I go out and go window shopping with a friend,,, and she purchases a bed in a bag comforter set,,, and I buy nothing all day but do have my wallet with me in my purse,,, social media like face book will start showing me bed in a bag sets from different companies? Seems that they are tracking me shopping.. even though I did not purchase a thing and have not bought a linen set in a few years. They(whomever they are) don't need to micro chip our bodies... we carry around a chip willingly... wherever we go.

I bank with an American regional bank, and my bank issued Mastercard debit chip card is missing the pre-printed four digit BIN number usually found just below the first four embossed numbers on credit and debit cards. I've always been told that the pre-printed BIN number was one of several safety features built into the cards.
I showed my card to two tellers at my bank and asked them why my card is missing the BIN number. They both told me the pre-printed BIN number is not a feature of their chip cards. I had with me a copy of the banks latest flyer which pictured the same Mastercard debit chip card I have except the card shown in the advertisement had a BIN number. The tellers both told me that there is nothing wrong with my card. I was still uneasy so I did some research online and found Mastercard's 2015 instruction manual for merchants. Among other things, it suggests that merchants double check the BIN number on cards as part of the verification process.
The fact that Mastercard's debit and credit cards do, in fact, have a BIN number is mentioned in several places online.

My card works just fine, but I still think something's odd about it.
Have you heard of this before?

I had almost $4000 taken out of my account yesterday. Chase says that it was a chip card with my pin that was used in New Jersey which is 3000 miles away from me and that they are not responsible for it. has anyone else had this happen to them? Chase has a zero liability policy for fraud but they are saying this is not covered. I have one card that has not left my possession and there are no authorize users on my account.

Yeah, same thing happened to me in Phoenix, AZ. Scammers figured out how to beat the chip. I'm out 500.00. I'm fighting the bank on this issue. They are trying to ignore me.

Hello Tibreezy,
The same situation has happen to me with Chase this month for $364. Chase explained the same zero liability. Now, I am responsible and If I do not pay-they are going to charge off account and report me to some agency called- Early Warning Services-I will not be able to open another bank account at other banking institutions.

I had my card in my possession the whole time unless I handed it to a cashier to make a purchase. Somebody got the information from my card and counterfeited my chip card.they went on a 500.00 dining spree to Red Lobster, Taco Bell, McDonald's, Jack in the box, Arbys, Arco, etc. My bank says the chip was used and it doesn't look like fraud so they won't refund my money. I know I didn't go to those places. I have records to show I was not in those places at those times. Some of the transactions happened when I was in Mexico. I used my card at an ATM in Mexico when transactions were made on it in Avondale and Glendale on the same day. They're trying to tell me there is no sign of fraud. It's right there in their own records. These chip cards are extremely vulnerable but banks keep pushing them so they can send you packing when someone defeats their system.

Wells Fargo did that to me when my puppy was dying. They got me hooked on payday advance loans to pay the vet bills and I made so little that I was stuck paying them 50.00 a month until I couldn't pay it. They put me on check systems. Same thing you're on. You can still get an account with a credit union but it will be 7 years until you can get a regular bank account again.

Holy smokes, so much fuss about a system that's been in place in most other technologically advanced countries for well over a decade. Seriously people, this is nothing new. It's only new in the US because your banking system allows for all those small, independently owned banks and therefore there's very little consistency across the whole system.
Just because the US is one of the last countries to adopt this doesn't mean it's new.

Yes I have a question about the new chips. I thought that by getting all new debit cards with new chips. It would not alow somebody else to steel your information. Recently Somebody was able to replicate my debit card that has a chip on it and got my personal pin number and when I was on vacation they went to a Kum And Go with drew 400 out one day and then checked my balance and the next day went to another atm at Kum and GO and with drew another 300. I was 300 miles from des moines and had my debit card on me. I had to go to the credit union and sign forgury papers and they refunded my money back. But isn't the purpose of having a chip on your card, to prevent people from stealing your information???????

The next logical step seems to be a USB chip card reader attached to every computer to make online purchases. When you want to make an online purchase you just put your card into the USB chip card reader and the merchant receives the authorization code instead of having to enter your card information.

The major hurdle here is that the online merchants would have to incorporate this functionality into their websites and some of the smaller companies might not have the ability or expertise to do so. Also, older incompatible hardware and the poverty-stricken would be left flapping in the breeze. You'd have to buy a separate piece of equipment if you want to make purchases online.

Im a current merchant, customer came in today to purchase a TV, i asked weather it was debit or credit and she replied back credit, so i asked for a ID like i do for all credit card purchases, she provided the ID (out of state ID),everything was ok, then i swiped the card since it had no chip, (I have a smart chip machine so it recognizes if card has a one), and it asked to INSERT CARD OR TAP PHONE, like said before card did not have a chip, does that mean the credit card was fake??? Of course i didn’t process the transaction, asked customer to called the bank, she refused after yelling and cursing at me for thinking she was using a fake credit card
I always asked my self if that means credit card is fake

WHY DOES A CREDIT CARD COMPANY REQUIRE YOUR SOCIAL SECURITY NUMBER AND DATE OF BIRTH, AFTER SOME 20 YEARS OF PAYING THE BALANCE ON MY ACCOUNT EACH AND EVERY MONTH? THEY REQUIRE THIS IN ORDER FOR YOU TO LOOK AT YOUR ACCOUNT INFORMATION==HOWEVER, YOU CAN STILL CALL THEM AND THEY WILL GET THE INFORMATION FOR YOU. SECURE WAY OF DOING BUSINESS??

This blog failed to clearly explain the nature of the added security. Furthermore, by adding a completely unique code to every transaction, you are increasing the track-ability of all transactions, although the bank seems to already have that data now.

So if I am to get this straight, the new chipped card adds a unique code to all purchases, which fraudulent use would also generate? The bank would then compare the unique card code to the valid codes at the bank, and approve the transaction? At what step does this chip do anything helpful??

I went to my credit union to ask why they were pushing the chips. "What specific thing does the chip do to add security?" No one at the whole branch could tell me.

It looks like I will try to use cash even more in my day-to-day transactions.

Yes, prophecy continues to be true.

I had my accounts drained the other day
My card kept getting declined so I used my credit card and finally on my way to lunch at work I checked my account to see a few cents in both my checking and saving. I'm not a rich man, I live paycheck to paycheck like all wage slaves do, but they took everything out of my branch atm in a different city than the one I'd visited earlier that same day. I'd also gone to a gas station, a cheap one, in a mehhh neighborhood. Never had my card leave my person but boom all funds gone!!! Luckily I have schools first credit union, they handled it well after 10 mins on hold a super helpful rep processed my fraud complaint in just a few minutes, recredited my account for the missing funds and I went to another nearby branch to get a new card printed. But still how was it so easy for someone to drain my account in the first place?!?!

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