The chip identifies the card, and marks it as a real credit or debit

As the Chip & Pin method does not require verification of the customer's signature (though this is an option), retailers have been defrauded by cloned credit cards being used with the proper card identification being given by the chip, and by use of a pin number set up by the fraudsters. All of these costs ultimately end up being passed on to the consumer, so by reducing credit card fraud, everyone benefits.

So successful has the initiative been in the UK, where every credit and debit card issued uses the Chip & Pin method and most retailers will not know accept a credit card which does not use it. Indeed, the argument is that with the advances of technology for duplicating Chip & Pin cards which is easily sourced by fraudsters, the method does not provide any additional effective protection for cardholders, retailers and the credit card industry. "Chip and Pin" refers to the introduction of a microchip which is included on the credit card in one of the corners.

Objections to the introduction of Chip & Pin in the US include the cost of introducing the card readers, arguments over who will be responsible for fraud losses and concerns that the Chip & Pin system hot-melt polyester satin is itself not infallible when it comes to criminal elements replicating the technology.

The chip identifies the card, and marks it as a real credit or debit card and which is not in fact a fake.

Credit and debit card fraud has reportedly dropped in the UK with millions of dollars in savings to the credit card and banking industry and huge savings for retailers who had to cover the cost of much of the retail credit card fraud which was being committed.

Cloning chipped cards has become one of the most effective criminal attacks on the Chip & Pin system. American tourists to the UK have encountered some difficulties in using home issued credit and debit cards because the US does not have the system here. This chip includes identification information which is read by a card reader and when the card is confirmed, the owner must also input a PIN number in the same way as when they use the ATM.Are Chip And Pin Credit Cards Going To Be Introduced To The US?