Tin Can Robot

The End of Swipe-and-Sign

The U.S. is the last major market in the world to continue to use the swipe-and-sign process for credit card transactions. However, both MasterCard and Visa have announced plans to switch to an encrypted chip on the card and personal PIN by October 2015.

One important thing to know is that it’s not as if everybody just got to the starting line just now, there has been a lot of work on this that has already happened. For merchants, the terminals in many cases are readily available or already there, they already have the equipment ready to handle the new cards. Banks who issue cards in many cases already can issue cards with the chip, and they have been issuing them to customers who travel overseas.

U.S. consumers are already pretty aware of the chip and PIN system, because most of the rest of the world has already migrated. And we would expect in the wake of these latest breaches and the media coverage that awareness is now even higher. And as banks issue consumers their new cards, they will get information explaining the system and all the benefits, and obviously how to use it.