In response to a recent string of credit card fraud, banks across the U.S. are responding with a card change that will make banking safer.
By Oct. 1, half of credit and debit cards in the U.S. will contain an electronic chip that will store account data more securely, according to the Associated Press.
The chip assigns a unique code for every transaction made on a card, and even if a thief acquired one of the codes, purchases could not be made, according to the Associated Press.
The magnetic strip on cards will still be available, but credit card agencies and banks encourage the use of the new computer chip payment method.
"The chip technology is designed to prevent copying of the card," said Ellen Richey, vice chairman of risk and public policy at Visa, adding the change has been a massive undertaking.
"Originally, the payment networks were relying on their own software to catch fraud at the point of sale in the U.S., but it became clear something more was needed," Richey said.
"Everybody is getting ready for it," said Lynn Shepard, executive vice president and senior operations officer at Security Federal Bank in Aiken. "This is just the first step in protecting cards against fraudulent attacks."
Shepard said banks across the world have started using chips in their cards.
Instead of sliding a card, the card is placed in a machine where it remains for the entire transaction, much like many ATMs, said Shepard.
"That is why there is so much fraud in America - because we don't use chips," said Shepard. "Canada started using chips in their cards in 2013 and 2014."
Shepard said it is extremely easy to counterfeit cards now, adding the majority of fraud cases are called "card not present fraud," in which the card is duplicated with the owner still in possession of the original card.
MasterCard and Visa primarily started the plan of installing chips because of liability, Shepard said. When fraud occurs, she said, banks take responsibility, and a financial loss to repay the customer.
"What is going to happen on Oct. 1 is cards with chips will be issued, and if a merchant is not set up for the chip method of payment, the merchant will be charged if any fraudulent attack happens on an account," said Shepard.
"Big businesses like Target and Wal-Mart are already set up for the chip payment," she said.
According to Shepard, this is just the first step to help fraud cases drop.
"In the future, there will be other steps involved to help at gas fuel pumps," she said. "However, until all the merchants are ready, we will have to still have the magnetic strips available."
Shepard added it could be at least five more years until magnetic strips are completely gone.
Robin Brown, with First Community Bank, said she does not believe the new process of moving to electronic chips will be a difficult one.
"It is an easy process to do," said Brown. "It is a very easy switch that can make a meaningful difference."
Brown said First Community Bank still is waiting for the initial deadline switch with its card provider.
"First Community doesn't have any cards yet," said Brown. "Our third party vendor is in the process, and has been working on it for several months to make the change before the October deadline."
Brown said the transition is a task not only for banks, but for merchants, as well.
"The card issuers have to update the card," she said. "The merchants also have to update their equipment."
Ultimately, Brown believes the transition will benefit everyone.
"It is a win-win situation," she said.
Will Whaley is the crime and court reporter for the Aiken Standard.