Chip and PIN Credit Cards, the Way of the Future

Blue Chip and PIN Credit CardTechnology changes day by day, and credit cards are not exempt from the breakthroughs.

At one point in time the only way to pay for an item was cash, and even IOUs; it then moved to checks, which also received improvements along the way (such as encryption and watermarks). Even before then items could be traded for.

The very first credit card is attributed to the Diners Club, which introduced the card in 1950. It was given out to 200 people, and accepted by 14 restaurants in New York. By the end of that year, 20,000 people were using the card.

Credit cards have come a long way. The magnetic stripe, which includes all of the details needed to complete a transaction, is becoming replaced more and more with the “chip and PIN” system. Although all credit cards retain the stripe, many larger credit card companies are including the chip and PIN on their cards.

What is Chip and PIN?

Chip and PIN works somewhat like a debit card, used to withdraw money out of your bank. Instead of swiping the card, you will insert the card into a machine, and type in a PIN code. No longer do you have to sign for a purchase.

This new way of validating identity is extremely secure; the chips are very hard, if not impossible, to duplicate, and the PIN code just adds another layer of security.

According to a February, 2014, Wall Street Journal blog article, EMV chip and PIN cards will completely replace swipe cards in October of 2015.


PayPass is a new technology (already popular in Canada) that is unique to MasterCard – it allows you to tap your card on the credit card machine to pay for an item, without having to sign or enter a PIN code. Depending on the store you are visiting, the amount available for PayPass can be up to $50.

PayPass is a convenience for buying your coffee or lunch, or any time you need to make a small purchase.
Just like anything else technology related, credit cards are constantly being updated; new ways of ensuring security and ease of use are being implemented. Always keep in mind the most important part about a credit card – that it works for you.

Posted on March 18, 2014 by in Credit Cards

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