New chip technology helps prevent fraud - MSNewsNow.com - Jackson, MS

New chip technology helps prevent fraud

source: WLBT source: WLBT
JACKSON, MS (Mississippi News Now) -

If you have a new credit or debit card you're probably familiar with the new "Chip" on the cards.

The difference between the chip and the magnetic stripe is the chip is expected to cut down on fraud.

When you use the chip a unique transaction code is formed making it more difficult if not impossible for a hacker to steal personal information.

The magnetic stripe on the other hand does not contain the same security.

Even though the chip provides more protection it won't stop fraud completely.

"The chip is not a total magic bullet to prevent fraud because you can still do card not present transactions. If you buy something over the internet there's nothing that is interacting with that Chip, there's still that opportunity for fraud," says Nick Anderson, the Senior Vice President and Director of Bank Operations for Trustmark Bank.

Bank experts say both the chip and magnetic stripe will remain on credit and debit cards for the next three to five years.The magnetic stripe will eventually be phased out.

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