What to know about the new credit and debit chip cards

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


That is awesome however are the banks and federal commission working together for a cc solution for online purchasing? Does using PayPal safer?

very nice, working in an industry, we were informed that if a card is swiped it we can challenge the chargeback however if it is a chip we cannot, my question to everyone, is if this person swipes the card and then later on decides he did not like the service, are we still able to challenge that card for services rendered?

I'm reasonably sure you answered you question. However if you are confused about the answer, here is the information directly taken from the article.
"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."
I hope this answer clears up things for you.

It is the future To control Us it is just the begining Of final y loosing our freedom Im against it but nothing i can do the hell with you and your new system it is a big lié

I concur

I completely concur with your statement. You can even read about such things in the Bible. Which states this is the beginning of the end when we're all marked "chiped"!

That's the truth is yet another prophecy coming to light

Preach it!!

I agree ! ! ! I declined/refused my card, I have none. I tried to access my account using just my checking account number on the automated system and was denied access. They said I no longer have access to their automated system because I refused the "Chipped Card"

It's not about control, conspiracy theories, or big brother. It's to prevent crime. Billions of dollars are stolen every year because of credit card fraud! These measures will not only protect your money/debt but make sure that merchants are not being ripped off for services or merchandise. If you are distrustful of using plastic, use the king of all currencies....cash!

I dont trust it, only being effective for in person purchases and not all places can read them.

The Dollar Tree still swipes their transactions.

What is a debit chip card??? Is it for the food stamps or for the ssi checks? What does it look like

A debit chip card looks like the debit card you get from your bank. It isn't for getting food stamps or benefits. It's linked to your personal bank account. 
The debit chip card looks a little different from the debit card you have now. The debit chip card has a small square metallic chip on the front.

Big R stores is still swiping their transactions, says their system will not be chip friendly til 2016

If security code keeps changing the article is unclear in the 2nd paragraph, sign or pin + might which is understandable. Finally following Europe after more than 10 years.

Thanks for the information and watch where we use our cards and how we use them from this day forward. Thanks.

I have noticed that a lot of the stores they have two ways that you can swipe your card with the old cards you can swipe and you can use the new one with the chip you have your choice either way. You can continue to use the debit card or credit card that you have now or you can get the new credit / debit card with the chip in it I noticed at Target they take both

I don't see these chips making us any safer. It's all bull. Someone steals your card n use it the same way.no pin has ever been asked of me. No signing either. Just steal my card and swipe or chip.

That's not the problem the chip is addressing.

I get my Social Security and Army pension deposited into a Direct ExpressCard each month. The card I currently have does not have the chip. It's a swipe stripped card. One time, when my wallet was stolen, someone attempted to withdraw my money from a bank in Hong Kong. But, my bank automatically froze my account. How did my information get sent to China?

you may request the revised credit card with the chip before the "roll-out" if the bank is in process of the new system

I'm all for new technology that helps us keep from being a victim from hacking to just plain theft. I'm always on the alert from my bank. I get a daily report and I keep track of all transactions. I'm 76 and I know I'm probably the ones they think are gullible. I hardly answer my phone unless I know the people. I have unknown or private I never answer these calls. It is a inconvenience but I disable my answering machine and it goes to voicemail now. I hardly get any call any longer. I don't know why I didn't think of it sooner.

The new card with the chip doesn't protect you if the merchant ONLY uses a card swipe system. It only protects you if the merchant has the chip only system. Most merchants have not converted from swipe to chip due to both the cost and the need to continue to accept cards that are swiped.

Most card fraud results from new cards produced from stolen credit card information. In other words, the bad guys hack a retailer's computer system and steal information for thousands of cards. Within hours, they then use that stolen information to make new cards that sell to other bad guys who use them to make purchases. Having a chip in your card does nothing to stop it...

I just recieved my chipped card from Direct Express. I got a nail and a hammer and put a hole through the chip because people can scan the chip walking by you! But now some stores won't let me buy anything because I disabled the chip ......., it's all just absurd!!

This new technology won't really affect anything you do with your card - you can still pay as you would normally, there is no difference, and you still get the same rights with refunds and everything else. The only thing that changes is that the cards are now safer, and so fewer people will experience credit card fraud. It's a better way, in my opinion.

This explains nothing. How would the card know it is being used by the owner or a crook who stole it? This explanation doesn't answer that question. It appears as if it is "magic". Come on put up a better explanation.

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.

I did not receive credit card yet.how they can still my information,so what can I do now,never
Received card,and can can i closed my information.i so work hard but never received anything in my life.

What happen if your cards expiation date is 2021 and the restaurant , store, onlines computer doesn't go that high. And your card doesn't work. What do you do. And why did they make the expirations date so far ahead?

Contact the bank or credit card company that issued your card.

With the new chip readers does it give you the option of debit or credit anymore? Or is it just debit no choice?

The data chips can be added to a debit card or a credit card. If your debit card has a chip on it, it is still a debit card. If your credit card has a chip on it, it's still a credit card.

Today a payer can choose his/her transaction on a debit card without a chip to be either a debit or credit transaction. The payer has a choice. With a chip-enabled debit card, will the payer still be able to choose to have his/her card transaction be a debit OR credit transaction?

The bank that issued your card may be able to answer your question.

ya didnt answer the question. Can you still use a debit card as a credit card?

A debit card is linked to your bank account. If you have money in your account, you can make a purchase. If you don't have enough money, you may not be able to buy things. Or, you might have overdraft protection with your bank. If you have overdraft protection, you might be able to buy things even if you don't have money in your account.
A debit card is not a credit card. If you buy something with a debit card, you pay immediately. You pay the full price immediately.
If you buy something with a credit card, you don't pay immediately. You get a billing statement and then make a payment. You may pay the full amount due, or just a part of the amount that's due.
Some merchants let you choose 'debit' or 'credit' when you use your debit card to make a purchase. When you use a debit card, the money comes from your bank account immediately whether you choose debit or credit. A debit card can't become a credit card.
If you have questions about how your specific debit and cards work, talk with your bank or card issuer.

I have a debit card with a chip. I find that merchants are no longer allowing you to use the credit card feature and require a pin on every transaction. When reviewing the receipt, it shows as a debit transaction when I chose to use it as a Credit Cared. Question: Are consumer protections mentioned above still in place in situations such as these?

The new cards look like the old cards, but they have a metal chip on the front of the card. You can have a chip on your debit card, or on your credit card. The chip was added to cards to reduce fraud. It doesn't change the purpose of the card.

I am happy with the practicality of the chip however one of the things that is of my concern is the mobil banking/mobil transfer since I notice that I am able to track it down my transactions with my email . My bank which is BOA is NOT ABLE to track down Recipient Transfer when Robbot Alert submits an Exclusive email stating that the transfer recipient hasn't accepted the transfer but when ask this question to "Bank" as a transfer to transfer transaction they are NOT ABLE to track down the information in their banking system nor they are able to show you when the money has been allocated to your personal account . My biggest concern is that if "Bank" is not able to track this information for the customers then how many of this accounts have money allocation problems causing the consumer to lose millions of dollars money transfers and where are these transactions are being allocated. Do they have this money on an special escrow account and or why can they not show proof to the consumer as to when the money was allocated to their personal account . Imagine if in a worse case scenario there is a forensic accounting being done for money laundering investigation and or for IRS audits and or any and or all sort of money transaction review of a consumer account , how on earth "Bank" is able to provide the consumers and or agencies with required information in order to review all sort of transactions for it's different purpose(s)? How about The Monetary restitution to the consumers and or a black and white explanation of "Bank" letterhead as an official document? This type of short change to the public consumer is a costly mistake to their pockets.

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)!

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?

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