Sharing Daily Discoveries About Personal Finance And Business Topics

Receiving The Chip Based Credit Card

So I got the new credit card today that has the security chip in it. The chip part seems shiny and I believe the intent is that a terminal can simply scan this part as oppose to you having to swipe the card. As well, your PIN number is supposed to eliminate the need of a signature. I am really wondering how this is more secured for items like Internet purchases though considering the chip can’t do much in that sense.

There was something I found kind of funny as a result of getting this new card. Basically, in the mail it gives you a breakdown of all the benefits that you get as well as the interest rate that you would pay. The interest rate they have given me for this card is 19.500%. I personally don’t care since I always pay my balances off in full.

However, in this mail it indicated that if I am the type of person that normally carries a balance I can pay a $35 annual fee to take advantage of an 11.9% interest rate. I was just thinking, can’t you normally just reduce your interest rate by asking them many times? I guess that is a new way for credit card companies to make money.

Wonder if I’ll actually get to test out these card features any time soon as I haven’t seen any of these new terminals live yet.

3 Comments to Receiving The Chip Based Credit Card

  • My experience, be it getting on for 5 yrs ago in the UK when chip & pin came in was that a major benefit was that the cards are harder to steal. I.e. with the chip as a simple swipe will not enable a thief to steal your data as there is some coding in the chip. I presume making fake plastic cards is easier than making fake plastic cards with a chip in them.

    As for the machines. Sure there are probably new terminals, but really the credit card will just become like debit cards where no signature is required. My experience is that most stores rarely check a credit card signature is anything like the one on the receipt. So having a pin feels far more secure.

    The sad thing is that Debit cards do not have a chip on them and are easily duplicated. Although much of this is a bit like alarm systems for cars, I’d still like to see more security on not just credit but also debit cards.

    Stewart 10/8/2009 10:02 am
  • You know, I think debit cards do have chips now too. I know my bank offers them too except I never received one for some reason. I’m guessing because not enough places actually have the terminals to operate them and so there is no urgency to replace everyone’s card.

    Alan Yu 10/8/2009 12:55 pm
  • My bank doesn’t offer them, despite being the world’s local bank and the cards being available in other parts of the world.

    The only urgency is that they are in theory more secure which will reduce fraud.

    Stewart 10/8/2009 5:13 pm

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