Changes coming to many credit cards

Changes coming to many credit cards

Within the next year-and-a-half, all Master and Visa credit card holders will see changes that will make their cards more secure. Read more here.
San Angelo resident Laura Childs, like most people these days, has both a credit and debit card. Within the next year-and-a-half, Laura and all Master and Visa credit card holders will see changes that will make their cards more secure.

"We…very rarely use our credit card. We use mostly our debit cards. Our credit cards are very limited in our transactions," stated Childs.

First Community Federal Credit Union Vice President of Lending, George Sweet, said Visa and Mastercard will issue chip-enabled cards to all holders by October of 2015.

"It's just a switch of who responsible for the loss...for the fraud," said Sweet. "It will make counterfeiting of plastic extremely difficult because the authorization codes that go back with each transaction is unique"

First Community Federal Credit Union and other lenders who do not issue new cards will be responsible for any fraudulent charges after the October 2015 deadline. Sweet said his bank is already making changes.

"At least our ATM's are being updated to comply with the cutoff date," continued Sweets.

Childs said she is happy about the new, more secure credit cards.

"Just kind of thinking about what the consumer environment is going to be for them, going forward, in their young adult and adult lives. ... It's kind of scary," stated Childs.

The new cards will require users to change the way a car is swiped. In the future, instead of swiping the car in and out...you're going to have to hold it in for a few seconds.

The new cards that contain security chips will be more expensive for banks. The cost of each card will go from $.50 to $2.00. In the end, Sweet said the new chip cards will be better for everybody.

"There's 0 liability. It extends on both sides of it. ...Is the issuer the one who has to take the loss or is it the merchant that has to take the loss," finished Sweet.
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