Swipe and Sign Credit Payment May Be Ending Next Fall

By Joe Gullo

Published 02/10 2014 04:18PM

Updated 02/10 2014 04:24PM

WASHINGTON - We've all been concerned about the safety of our credit card transactions after the recent widespread theft of credit card information from retailers like Target and Neiman Marcus. A completely new credit system may be in the works that could make us a lot safer.

One U.S. senator recently pointed out that nearly half of the worlds credit card fraud happens in the U.S. Many are blaming an old fashioned payment system.  So, now some card companies are now looking to upgrade to "smart cards" -- which means you will be saying goodbye to the swipe and sign routine and hello to credit card chips and pins.

The Wall Street Journal reports that by the end of next year, there will be a new ritual in the checkout line.  You'll swipe your card into a card reader, enter in a pin number, then go -- no signature required.

The new cards will be embedded with a microchip with security data that experts say will be harder to hack.

Visa and Mastercard have already announced that they'll make the switch by October of 2015.

Many other countries, that also had a problem with credit card fraud, made the switch years ago with much success.

But it's not foolproof.  The Smart Card readers and pin pads are used for in-store sales, so these more sophisticated cards can't stop fraud in online shopping.

The United States is behind the curve on this one. The U.S. will be one of the last major counties to switch to this system. Customers should be on the lookout for this by fall of 2015.

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