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What this means is that you should be even more cautious about keeping card numbers saved on your online accounts, like Amazon or Target, because hackers can still access your information and make fraudulent purchases there.

Tom: What else changes for customers?

Mellody: Actually, not much. As I mentioned, you will now have to dip your card rather than swipe it. For the time being, you will likely dip your card and sign, rather than entering a pin, but over time we will likely see a move toward pins for credit cards, just like for your ATM card. If you do not have a chip card yet, don’t sweat it. You will be able to swipe your magnetic strip cards just the same at most chip and pin registers, and if not, they will be able to key in your number. The biggest difference for consumers will likely be an extra few seconds for each transaction, because the system takes a bit longer due to the extra security measures.

Tom: How is the transition going so far?

Mellody: Slowly. Currently, only about a third of retailers have completed the transition over to the new terminals. A few big retailers, such as Wal-Mart and Target were aggressive in their transition, while others have been slower, especially small businesses. Only about 20% of single location businesses have completed the shift. Much of this has to do with the cost, which is between $100 and $600 per chip and pin terminal, and more if new software is required. Overall, analysts expect the full transition to take a while to complete, with the process of issuing chip cards should be “nearly complete” by 2017.

 Tom: Always to have your insight, Mellody! Thanks for joining us!

Mellody: You are very welcome, Tom!

Mellody is President of Ariel investments, a Chicago-based money management firm that serves individual investors and retirement plans through its no-load mutual funds and separate accounts. Additionally, she is a regular financial contributor and analyst for CBS News.

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Money Mondays: What You Need To Know About New Chip Credit/Debit Cards  was originally published on blackamericaweb.com

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