Keep an eye out for a new batch of credit cards arriving soon in your mailboxes. Credit card companies are issuing new cards embedded with chips as opposed to magnetic strips and are hoping to pass the savings on to consumers in more ways than one.

EMV cards (Europay, MasterCard, and Visa) are widely used in other countries. In the U.S. there is a shift towards finding better ways to protect both card issuers and users from fraudulent transactions. The new chip technology automatically exchanges  information between the card issuer’s terminals and the chip generating a unique, one-time-only code per transaction rather than using the actual credit card number. Personal data is protected and so is the card itself.

Many stores are still in the process of transitioning their terminals to accept EMV cards. Eventually the liability for fraudulent purchases will shift from issuer to merchant if the EMV technology is not supported by the merchants. However, if the card issuer has not upgraded their customers cards with EMV chips and the magnetic strip was used for a fraudulent transaction, the card issuer will be held liable. At this time, cards with both chips and magnetic strips are still available. Use the chip if you have one to keep your accounts secure.

If you are unsure of any changes to your credit cards, call the company who issued the card and ask. As with any ongoing effort, the transition to EMV technology will take some time and soon dipping the chip will be the new way to shop.