Card security beefed up

According to the Caledonia Courier, new computer chips embedded in credit and debit cards are causing a bit of confusion at the checkout counter. Banks and retailers across Canada are starting to use the new cards, with account information stored on an embedded chip as well as a magnetic stripe on the back. The chips increase security, especially with credit cards that now use a four-digit personal identification (PIN) number instead of a signature to verify the purchaser’s identity. The transition is expected to take several years, according to the Bank of Montreal, one of the early adopters that has been issuing chip cards since October 2008. Store staff and customers will both have to learn new routines, and shoppers can expect clerks to continue asking for a signature on credit card purchases after it is no longer needed. The Interac debit system is also switching to chips and chip readers, but the new debit and credit cards will still have the magnetic stripe that allows them to be used in the United States and other slow adopters of new technology. The chip system was developed by MasterCard and VISA in Europe. Its encrypted information is more difficult to copy or change than the magnetic strip, which has been targeted with various theft schemes.