New card chip fraud protection regulations begin October 1

New card chip fraud protection regulations begin October 1

HUNTSVILLE, AL (WAFF) - Thursday, new measures go into effect nationwide to help keep you safe from credit card fraud following a series of high profile breaches.

Credit cards will now feature embedded card chips to help keep your funds safe from hackers. The embedded card chips have become increasingly popular in the U.S. over the past year to help keep shoppers safe from data breaches by assigning each transaction an individual code adding an extra layer of security.

Fraud liability now falls to whichever side hasn't yet made an upgrade to the new card chip technology - the bank or the retailer.
 
"When you go to a merchant and you give them a credit or debit card, then what you will be doing is inserting it into the machine," Joseph Newberry, Redstone Federal Credit Union President & CEO. "You won't be swiping it anymore. And then you will hold until that transaction gets completed and then you
will pull it back out."

The chip will essentially eliminate this mag strip on the back of your card.
 
About 70 % of cards will be chip-enabled by the end of 2015, but less than half of retail devices will be equipped to handle them so swiping will be an option for a while.
 
Don't expect this change to totally eliminate fraudulent activity, online and card-not-present transactions are not covered this chip technology.
 
If you haven't received your card yet, most banks say they will send them out in the next few months.

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