Credit cards phasing to microchip technology - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Credit cards phasing to microchip technology

Amarillo, TX - Most debit cards in the US will have a microchip by early 2015.

A local bank says it is all in an effort to combat fraud.

Microchips on credit and debit card should cut down on fraud, but as a result it could cause an  initial rise in online theft.

Banks will start phasing into microchips at the end of the year.

Stewart Dodson assistant vice president of electronic banking at Amarillo National Bank says this will completely eliminate most types of fraud.

"It will basically get rid of card present fraud where they duplicate your card and have an actual piece of plastic it will eliminate that".

This will likely send more thieves online.

"They get an actual card and take it, make a copy, and then they use it fraudulently. That will be out of the equation so they will start shifting their fraud towards online or card not present fraud. So I do think we will see a ramp up in card not present or online fraud."

Over all the US shifting to microchips will most likely cut down on fraud for consumers.

Dodson says other places who use microchips have seen great results.

"Other countries that have gone to the chip world have seen a dramatic decrease in fraud. And I think the US is learning from that and we are seeing a ramp in fraud, but we are going to see it go down because of new technology that is going to be released in the next 6 months to 2 years."

Powered by Frankly