You may receive a new credit card in the mail to replace the one you have. It will require an extra layer of authentication, and it will be more secure and help prevent fraud, thanks to the technology built into them.
The same technology has been in use in Europe, specifically France, for nearly two decades, further encouraging Canada to follow suit.
For the last several years, credit cards have only required you to swipe, show identification, and sign in order to purchase something, and most places don’t even check for ID.
“I work in retail, and when I ask to see ID with the card, [people] thank me,” said Jenna Turner, a nursing student at Lethbridge College.
The new cards eliminate the need to swipe, and for a signature, replacing it with a computer chip that communicates securely with credit card company servers. The process verifies the card belongs to you, all you have to do is enter a PIN.
“You swipe it first, then you place the card in the [slot] under the keypad, it reads the [computer] chip at that point,” said Tyson Wiebe, a general studies student who has noticed people using them for the past six months or so.
The cards are not in wide circulation yet, as none of the 20 or so random students asked had one, but nearly everyone has heard of them, and are happy about the improved security.
“It’s a little harder to find out someone’s PIN then to sign [for them],” said Katelyn Perry, a General Studies student at the college.
Some of the newer cards still have the magnetic strip, though they will be phased out. According to an article on the on the website for the Vancouver Times-Colonist, the new cards act in much the same way debit cards do, at least for the PIN.
Not everyone sees the benefit, and some are quite happy with the way things work right now.
“Anyone can see that PIN. I’d prefer to keep the signature,” said Catherine Dessert, a student at Lethbridge College.
The entire reason for the change in how the cards work is to help reduce the $300 million incurred annually in fraud across Canada.
All merchant terminals must be upgraded by 2015, making it a multi-year rollout, which should give customers ample time to get the new cards.
Originally posted 2008-11-07 01:16:24. Republished by Blog Post Promoter
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