Using debit cards has become even more secure, thanks to chip technology. This new form of authentication provides an additional layer of protection by making it nearly impossible for anyone to counterfeit or clone a card. The chip reader also gives customers a much faster transaction time than traditional magnetic stripe cards. Using debit cards with chip technology allows people to make purchases quickly and confidently knowing their money is safe and secure.
Chase announced today a commitment to reissue a majority of its debit cards with EMV chip technology by the end of the year. They will be one of only a few who are currently aggressively reissuing debit.
JPMorgan Chase will replace all of its customers’ debit cards with more secure chip-based cards nationwide, the bank said Tuesday, and expects to have chips on 70 percent of its debit cards by the end of 2015.
“Customers who do not already have a Chase chip debit or Liquid card will receive one in the mail during the next 12 months, Chase said. It already embeds chips into most of its new credit card products. The bank is also upgrading its ATMs to accept chip cards, it said.”
It will be interesting to see how acceptance of the chip will be received at merchant terminals. In their customer instructions, Chase understandably instructs customers to first swipe the magnetic stripe on the card and only when prompted by a chip enabled terminal, insert the chip to execute a transaction. This is certainly going to increase the time it takes customers to checkout.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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