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Target Cards To Have Chip-And-PIN

April 29, 2014, 6:05 PM by Angela Kennecke

Target Cards To Have Chip-And-PIN

In the wake of the massive data breach before Christmas, Target is now converting all its brand credit and debit cards over to new technology to make them safer. 

Target says all of its brand of cards will now have MasterCard's chip-and-PIN technology.  It's a system of paying that is supposed to be more secure than the old magnetic strip. 

After tens of millions of accounts were compromised or personal information was stolen, Target has been overhauling its security and technology.  It's also named a new Chief Information Officer.  

But the biggest change customers will see so far is the speeding up of a $100 million plan to roll out chip-based credit card technology in all of its stores.

The old magnetic strip on a card transfers the credit card number.  Cards with a computer chip in them use a one-time code that moves between the chip and the retailer's terminal.  That data isn't usable by anyone else.  They're also thought to be impossible to copy.

All major card issuers plan to switch to cards with computer chips in them in the coming years.

The new payment terminals will be in Target stores by September--that's six months earlier than planned.  Then beginning early next year, Target will be able to accept chip-and-PIN payments from all of its Target credit cards.

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