On Wednesday, January 6, 2016 at 3:58:14 AM UTC-5, sf wrote:
> On Tue, 5 Jan 2016 21:59:56 -0500, Ed Pawlowski > wrote:
>
> > The RFID chips are being phased out for security reasons. The new chip
> > cards have to be inserted if the equipment is available, swiped in the
> > meantime.
>
> I still don't understand how the new chipped cards are any safer than
> the old style swipe.

The transaction is encrypted with a single-use key, and decrypted
on the other end. The old-style magnetic strips could be copied
easily, and there was a whole cottage industry in vandalizing
ATMs and standalone credit-card readers (like gas station pumps)
and installing duplicators. The hapless citizen swipes his card,
the information is read from the magnetic stripe, and the felon
has a copy of the credit card, to use as he pleases.

The new system is much more complex; it'll probably take some
time before it's cracked and new fraud arises.

Cindy Hamilton