US Credit Cards To Remove Magnetic Strips And Add Smart Chips By 2015

Credit Cards and Debit Cards usually use magnetic strips to read the information from your card using a automated system network that connect your card to your bank. Magnetic strips uses a secret code number and if someone knows that number,he can become the owner of that card. Many frauds are carried out to know that number and often bad guys they make a clone of the original card. A recent example of that can be judged from the biggest data breach at Target. Credit companies in US are making cards system more secure but magnetic strips have now become an open gateway for hackers to steal the card information easily.

There is a cure to that. Many countries have removed magnetic strips from the credit cards and are using a new technology called "Smart Chips" which is more secure and hard to hack. Usually magnetic strips contains exact information to identify the card but smart chips only holds a piece of information which is only used to identify that the card has information. Smart Chips keeps the information secret to vendors however magnetic strips are open when you swipe your card in the machine.

USA has decided to implement this technology in the Credit Cards and Debit Cards and according to a report from Bloomberg, Credit card companies like Master Card and Visa Card has set deadlines to bring this technology by October 2015. There are almost 1.2 billion credit cards and debit cards in USA, so in order to bring this technology, It will take some time.According to Nick Holland of Javelin Strategy and Research, It would take almost three years for bank cards and credit cards to switch.