Credit Card Chips : Credit Cards Essay

1307 Words Nov 16th, 2016 6 Pages
Credit Card Chips
Credit to buy goods or services has been around since the early 1900s, when consumers would use credit to buy goods or services and pay for them at a later date. The bill would then be sent to the bank, and the consumer would go back and pay it before a set date. Today, “7 out of 10” Americans have one or more credit cards. Credit Card companies introduced the ‘chip,’ a magnetic strip in cards to prevent fraud in brick-and-mortar stores, in late 2015. Credit Card companies, such as Visa and MasterCard, pushed these onto their cardholders by mailing out chip cards and letting the cardholder know their regular card will expire in 30 days. This lead to many brick-and-mortar stores to update their card readers at checkout to handle the new chip or be fined. Instead of swiping, the new card is inserted at the bottom of the machine and the machine reads the chip to complete the transaction. The new chip cards have left cardholders annoyed at checkout, has not stopped identity thieves overnight, and are proved to be better for brick and mortar retailers.
Shortly after cardholders were to switch to chip cards, many cardholders became annoyed by them at checkout. Since the card is to be inserted at the bottom, it takes anywhere from “5 to 15 seconds” for the transaction to go complete the transaction, and if the card is removed before the transaction is done, the cardholder must reenter the card and restart the transaction. At the checkout, there are still many…

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