Transcript for The New Credit Card Chip
the new technology in your credit card that could help stop fraud in its tracks. ABC's gio Benitez as we said at an atm to show us how it all works. Good morning, gio. Reporter: Robin, good morning to you. Starting next week you may not have to swipe these cars anymore. You'll use this little chip to pay. Take a look. It's the new technology that aims to stop thieves cold. And in just a few days this high-tech chip in your credit cards could lead to a lot less fraud. Here's the problem right now. Watch as this fast food attendant swipes a customer's card once and then a second time using a small device. Watch again. From the register to the skimmer. It looks like this. Small enough to fit in a thief's pocket and could even be installed at gas station pumps. Police say this criminal couple was caught on camera desperately searching for their skimming device. The possible solution, that chip. The electronic transactions association tells us it can't be duplicated by criminals like magnetic strips creating unique codes for every single purchase. No more swiping, you put your card in and keep it there till the code is captured. When you have a chip card and but to a chip card reader you're no longer using the magnetic stripe but inserting it and a one-time code is passed to the machine and used to authorize the transaction so your credit card information is no longer shared. Reporter: Now starting October 1st the trade association says if businesses don't have technology in place to read that chip, they will be entirely liable for any fraud. But many of us don't even have a chip on our cards yet so what do you do? If consumers don't receive their cards by October 1st, merchants cannot refuse your payment. It's your bank's responsibility to send you and issue a new card. Reporter: But the chip alone won't make your card entirely safe. Thieves can still copy credit card Numbers and use those stolen Numbers online. And, remember, you are never liable for any fraud. Now we're here at an atm. Normally you would take it and stick it in and slide out but in this case because this has a chip, this is telling me tense, a chip was detected please insert the card and do not remove it so you just put it in, it locks in there and that's how you get your money, robin. Good to know. Have you seen that on your cards? Yeah. Just used it yesterday. Thanks, gio. Coming up, the big statement
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