New chips designed to make credit cards safer
Visa, Chase and other major card companies are posting videos on YouTube explaining the changes to their customers.
The new credit cards have these little chips on the front. This is actually a micro-processor computer, and it’s intended to keep someone from stealing your card and running up large bills.
Here’s how it works and what it means to you.
Instead of swiping your new card, you’ll insert it into new machines at retailers check-out. Insert the card, enter in a password and it pops back out.
Dipping takes the place of the old bar code on the back of credit cards. The bar codes made it easy for crooks to copy, because the data in the bar code never changes. With the new computer chip cards, the data changes each time you use it.
Retailers are required to use the new machines. Those that don’t will be left holding the bill. Up until now, credit card companies and banks repaid customers for any purchases made with stolen credit cards.