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Wall Street Journal: All U.S. credit cards to be replaced by 2015
By: Gina Benitez
EL PASO, Texas -- Major credit card companies have announced they will get rid of cards with a magnetic strips and signing for transactions.
According to the Wall Street Journal, Mastercard and Visa are onboard with the decision to switch to cards with a microchip in an effort to prevent widespread fraudulent activity.
"If that's going to solve the problem, I think everybody would be happy," said Judith Valle, a west El Paso resident.
Valle is an avid shopper.
She said as soon as she heard about the recent Target card-security breach, she panicked.
"I usually check my credit card statement almost every day. After that, I was doing it like twice a day and making sure, but it's something that everybody should do," Valle said.
As we've reported, recent data breaches at major retailers left millions of people's PINs and credit card information in the hands of of thieves.
Kim Sullivan, another west El Paso resident, doesn't use credit cards, but is still on high alert.
"If they can get into your credit cards, they can get into your debit cards also, because it runs off of Mastercard and Visa. So I am worried about that," Sullivan said.
But now, big changes are coming.
According to the Wall Street Journal, every credit card will be replaced by 2015.
Instead of that magnetic strip, a microchip will go on the new cards.
The outdated strip is easily copied and more vulnerable to hacking.
Now, you'll just insert your card into a slot, enter your PIN and you're done.
Most major countries across the world already have this system in place.
The United States is one of the last to switch.
"I think that's a shock to us. As Americans, that would be a shock," Sullivan said.
A Mastercard representative says there were higher fraud rates in other countries and it wasn't really an issue here.
But now, schemers have since switched their focus to the United States.
"We're a First World country so, we're lagging behind. And if it's working for the other countries, why not us? And it should be like now," Valle said.
The switch is reportedly set to happen by October 2015.