Chase Bank is about to replace your debit card with something from the near future. Starting today, Chase customers can opt for a debit card with microchips, a technology domestic banks have been slow to adopt. Those card-enabled chips are expected to one day replace plastic with magnetic stripes, which are often the target of hackers who want your info. Cards with magnetic stripes are also easily copied. If you’re wondering how you’ll end up paying for things, it won’t change much just yet.
Chase is currently issuing cards with both chips and the magnetic stripe, so your in-store experience won’t change. Over time, as banks like Chase move away from the magnetic stripes, you’ll no longer swipe your card.
Instead, your card will be inserted into card readers, much like you probably do at an ATM. The reader uses the info on the chip to verify the transaction with your bank.
The reason for not jumping all-in with microchips has to do with card reader technology. The United States is just now starting to catch up to this security feature, and in-store card readers haven’t caught up (much less ATM terminals).
It’s a notable move by a bank in the spotlight recently. In October, Chase noted about 76 million customers were affected by a data breach.
Source: The Chicago Tribune