Banks, businesses get ready for switch in credit cards

08/11/2014 1:35 PM

08/11/2014 1:55 PM

A big change is in the offing for credit and debit cards.

By October 2015, the country’s two largest card payment networks, Visa and MasterCard, want a system in place that replaces the magnetic stripe on the backs of credit and debit cards with a chip.

It’s a move that the companies and other financial industry officials said will reduce counterfeit card fraud and its impact on consumers and companies.

The changeover is likely to have minimal effect on consumers. The only effect it will have on them, financial industry officials said, is learning to “dip,” or insert, their card, instead of swiping it on a card reader.

The impact on businesses that accept debit and credit cards, as well as for the banks that issue the cards and process transactions, will be much greater.

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