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BofA launches chip-based debit cards

img_2056.jpgBank of America is the first major U.S. bank to issue debit cards with chip technology. The bank is already offering chips on credit cards. The chip technology essentially holds the same information the magnetic strip does on credit cards. It works with a PIN number which, when verified, allows the transaction to be processed. Cards with chip technology, also referred to as EMV cards, are embedded with a microprocessor that encrypts transaction information. Each time the chip card is used, the transaction data changes, making it more difficult to copy or counterfeit the card. Merchants need to adopt new payment terminals to be able to use the new cards, which in turn would make shopping safer for customers. Credit card companies Visa and MasterCard have offered merchants and card issuers an October 2015 deadline to migrate to the new chip technology. Merchants will have to put in place new payment terminals to accept chip cards.

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