Target Breach Proves It: Time for Chip Cards
Sacramento Bee says magnetic stripe is too vulnerable to thieves
By John Johnson, Newser Staff
Posted Dec 25, 2013 1:40 PM CST
A Target store in New York City.   (AP Photo/Bebeto Matthews)

(Newser) – The 40 million Target shoppers whose credit cards were compromised in a holiday breach might find themselves nodding along to this editorial in the Sacramento Bee: It's high time that the US payments industry did away with the decades-old magnetic stripe on credit cards and adopted microchip-based cards instead, the editors argue. Much of the rest of the world already uses this more secure method, but the US is lagging.

Why? Mainly because the government has let the industry decide on its own how to deal with fraud. "We have a chicken-egg problem here," writes the Bee. "Merchants won’t buy chip readers if banks aren’t issuing chip cards. Banks don’t want to issue chip cards because they collect fees from merchants to cover credit card fraud. A better card would mean less fee income for them." As a result, Congress should step in and make sure that magnetic-stripe cards "go the way of eight-track tape." Click for the full editorial.

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Showing 3 of 43 comments
vlad
Jan 2, 2014 10:00 AM CST
any damned fool who believes this underestimates the criminal mind ! remember all the new counterfeit proof bills that have been coming out on a regular basis since the mid nineties ? has`nt stopped counterfeiting , in fact perfect copies are usually available within one to three months !
JERZJOE
Dec 29, 2013 8:39 AM CST
the only way is like the movie "Minority Report"!! retina eye scan. that will solve all the security breaches. for any type of transaction. period!!
TessTalks
Dec 26, 2013 9:46 PM CST
When is everybody going to realize the rest of the world is way ahead of the USA on every level. For instance, do you know most countries give employees six weeks of vacation? Come out from under those rocks already.