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6 signs of a new age of consumer banking

Banking » 6 Signs Of A New Age Of Consumer Banking

New card chips?
New card chips? © LDprod/Shutterstock.com

Transaction security, in particular, "will continue to be a challenge," Whaley says, adding that consumers and industry people are paying closer attention after the data breach at Target last year.

The magnetic strip, or "mag stripe," found on the back of most debit cards and credit cards in the U.S. is old technology. The new tech, already widely used in Europe, involves a so-called EMV (Europay, MasterCard and Visa) chip, which is much more secure than a mag stripe. The EMV chip produces unique coding for each transaction.

Timelines and protocols already exist to migrate today's credit cards and debit cards to this more secure technology, and in some cases, transfer some of the liability for fraudulent transactions from banks to retailers.

Whaley is unsure if chip cards would have prevented the Target data breach. "I don't think anybody knows yet. But if some of those (data breaches) could have been prevented by having more robust card technology, I think we could see some drastic changes in the way we bank and the way the card is used," he says.

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