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Chase offers chip-and-PIN

By Janna Herron · Bankrate.com
Thursday, February 27, 2014
Posted: 1 pm ET

JPMorgan Chase will be offering to chip-and-PIN credit cards later this year as a part of a company effort to reduce card fraud. Company CEO Eileen Serra announced the change on Tuesday at Chase's investor conference.

EMV chip cards (for Europay, MasterCard and Visa) contain a tiny computer chip that encrypts transaction data uniquely each time it is used. This makes it nearly impossible for fraudsters to create counterfeit cards. Chip cards are also widely used abroad.

Chip cards come in two varieties: one that requires a PIN to complete a transaction and one that only requires a signature. The difference is similar to how many debit card purchases require a PIN while credit card transactions often need only a signature to complete the transaction in the U.S.

Chip cards with PINs, or chip-and-PIN cards, are more protected if the card is lost or stolen and someone tries to use it fraudulently. That's because it's easier to forge a signature than to guess someone's PIN.

Currently, Chase offers EMV chip-and-signature versions of the following credit cards:

  • British Airways Visa Signature Card
  • Chase Sapphire Preferred Card
  • Hyatt Credit Card
  • J.P. Morgan Palladium Card
  • J.P. Morgan Select Visa Signature Card
  • Marriott Rewards Premier Credit Card
  • The Ritz-Carlton Rewards Credit Card

Several other U.S. issuers offer chip-and-PIN cards for some of their credit cards. Bank of America and several credit unions offer chip-and-PIN cards, while Citi and Wells Fargo offer the option of entering a PIN if the retailer supports it. U.S. Bank offers only chip-and-signature cards.

Chase's announcement comes after a major card hack at Target over the holidays. Fraudsters picked up data from 40 million debit cards and credit cards, along with personal information from up to 70 million individuals. Neiman Marcus, Michaels and White Lodging -- which manages major hotel chains -- also disclosed card breaches in the last two months.

Will you get a Chase chip-and-PIN card? Do you want one?

Follow me on Twitter: @JannaHerron.

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30 Comments
Carl McKellip
March 01, 2014 at 7:55 am

Photo is ofcourse the solution to the current problems. Kind of like a photo verified ID is a no brainer for voting. Why is that a problem to anyone

Emmet Richards
March 01, 2014 at 12:05 am

All they need to do is to ask for a photo ID of the purchaser(s) which verifies that the person purchasing the item(s) has the same name and signature as signed on the back of the card. If these employers had informed their employees to do this it would be less headache for all of us. When a customer walks up and slides a credit card no problem, your next question is: may I see your ID please. If they cannot present same, then go your way and leave my goods. All Credit Card Companies and Employers should institute this and we would have less scams. Purchasing gas, go inside and pay with your Credit Card NOT at the pump as someone could be sitting in their car close by and getting your information. I have seen it where this guy sat in his car with a computer and something like a cell phone, but he was busy watching who used a special pump while inputting information accordingly in his computer for quite sometime he sat there. Being as I had heavy tinted windows he couldn't see me while I watched him foro about 30 minutes then I got suspicious. I then came from my car and wrote his plate down and called the police but I think he saw when I took his plate number and he took off shortly thereafter before the cop came. But I gave them the info and hope they got him. Be careful they are out there.

Jerry
February 28, 2014 at 11:15 pm

Put a photo of the cardholder on the card AND require ALL clerks to verify the photo, simple as that. They do it (check photo ID when you buy liquor or cigs), why can't they do it all the time?Of course, that would make their job more complicated and they'd demand more pay. OH, WAIT, when was the last time a store clerk looked at and verified that your signature on the machine/sales slip matched the signature on the back of your card? I carried and used a card for 8 months without signing the back of the card and was never challenged due to the lack of a signature. He**, the clerks never even looked at the card. We have the safeguards now, if people would just use them properly..... All this new stuff means more equipment and higher costs that the consumer will ultimately pay for.

Donald Recker
February 28, 2014 at 10:35 pm

I recall being told that unshielded micro-chip cards can be "read" right through one's purse or wallet by a thief walking by with an electronic scanning device. The warning being not to accept chip cards, or to be scrupulous in shielding such cards when taken in public.

J. J.
February 28, 2014 at 8:26 pm

Will the card still have a magnetic strip? If not how will you use it in card readers unless they are all (millions in US) converted to read a chip. If card readers are not converted then you will still need the magnetic strip for most services. I read somewhere in the past that it was always argued the additional cost of adding a chip the card was more than the typical fraud losses a bank incurs.

Lori A
February 28, 2014 at 8:24 pm

That's what I've been saying for years. If someone stole my credit card, they could possibly make their way across the country before I even noticed it was missing by simply swiping the card at the pumps. If they had to come up with the pin…they wouldn't get past point "A".

James H
February 28, 2014 at 8:13 pm

Why are European nations so far ahead of us??? If they've been doing it we should have been right on their heels . . . PRIOR to the Target fiasco! How about a "holagram photo" of the cardholder? No match of "presenter/user" and "photo" on the card . . . NO USE OF CARD! PLUS the chip & pin technology!

Julie G
February 28, 2014 at 6:44 pm

Why does it always take something like the Target disaster to get corporate executives to improve things? We need to start being PROACTIVE in ways to PREVENT these kinds of disasters in the first place. The USA used to be the leader in so many things but in the last 4 decades we have fallen behind and Europe is full steam ahead. Wake up America!!

vince casalenuovo
February 28, 2014 at 6:37 pm

All you have to do is put your picture on your card......now wasn,t that easy..........vince

John G.
February 27, 2014 at 8:19 pm

Chip and PIN cards and chip and signature cards are equally difficult to counterfeit: that's their chief common characteristic. In addition, chip and PIN cards can be used at devices without a network connection, such as subway turnstiles, because they have the PIN encoded inside them: this makes them somewhat more resistant to being lost and stolen, but each card a person carries would have a different PIN and lost and stolen cards are usually detected quickly by fraud algorithms or requests to show identification.

The analogy of chip and signature to credit and chip and PIN to debit is _VERY_ misleading... debit cards carrying a MasterCard or Visa logo can be used with a signature and credit cards can be used with a PIN at ATMs to get a cash advance. There is no connection.

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