After Target Breach, the Fight's on for Smart Cards
Target's data breach may speed up the adoption of more secure credit card technology in this country. Chip-based "smart cards," already used in Europe, are difficult to counterfeit because the account information is encrypted and stored in an embedded microchip. Most point-of-sale transactions with these smart cards cannot be authorized without a PIN code. That's why it's called "PIN and chip" technology. Matthew Shay, president and CEO of the National Retail Federation, has sent a letter to congressional leaders calling on the banking industry to switch from the easy-to-hack magnetic strip to the more secure PIN and chip.