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Old credit cards better than the new ones

By Bryant Park

November 03, 2010

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The content is accurate at the time of publication and is subject to change.

There are cards that come with or without chips. But which one is smarter? Smart cards are the ones with chips. One would think that the smart cards are far superior to the age old 70's card which had the magnetic stripes. In reality, the information that is required, in case of the old card, is supplied by the network and it does not have to rely on the microchip.

In the U.S. alone around 13 million of these magnetic stripe readers are in existence. They no longer require a counter to rest on. Instead a tiny gadget doubles up as a magnetic stripe reader when it is attached to the iPod, iPhone, iPad, or Android phone.

The smart card is also similar in having the magnetic stripe and the information provided is the same as that of a conventional card, however it uses the smart reader. In the U.S. about 600,000 smart readers are installed in the terminals at the point of sale.

Europe has been using the smartcards for quite a while now. Target had offered millions of smart cards and equipped cash registers with smart card readers. Customers would download coupons onto the card from the Target website. Target wanted to keep the brand innovative and hip in comparison with the others.

AmEx had the chip installed in its Blue card in the year 1999. The ExpressPay was added on in the year 2005. The chips were embedded in the card or in the keychain and required just a wave not the regular swipe, in case of ExpressPay readers.

Magnetic stripe cards became a lot easier to use after the ExpressPay made its way. Signatures were no longer required on small transactions as card companies had done away with that. Retailers also let consumers swipe the magnetic card themselves and thus saving time. So it did not matter anymore whether the card was swiped or waved as both were advantageous.

Magnetic stripe cards are connected to mainframes in the U.S. Fraud analysis is conducted in real time by this machinery. All that the company has to do is upgrade its centralized security system for changes to occur instantaneously. Hence it does not matter if the card is smart or dumb as long as up gradations are centralized.

However, Smart Card Alliance, Executive Director, Randy Vanderhoof states that mag-cards can be easily copied by fraudsters and smart cards could contain such fraudulent practices.

Europe has adopted the chip-and PIN system, which is a two-way authentication process, wherein customers use something they have as well as something they know. This might soon spread to the U.S.

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Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

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Larry

With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on. I decided to jump on this offer.. read all the info on it.. was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000. When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000.. as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead. Well, in their current ongoing promotions, it states plain as day that.... Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders.. However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify.. but thanks for signing up for our garbage credit card with insane fees..
CreditLandCom

Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. http://www.credit-land.com/details/the-business-gold-rewards-card-from-american-express-open.php Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. http://www.credit-land.com/details/american-express-premier-rewards-gold-card.php While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
Deborah Ellsworth

would very much like to start a new credit history by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
Deborah Ellsworth

I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
Miss Edna

there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
Robin Parks

I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
CreditLandCom

The Chase bank cards are not currently available at Credit-Land.com, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
Becky

This is Becky Now what do I do just waqit for acard to come to me?
CreditLandCom

Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
SavingStar

Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
CreditLandCom

Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
Eric

$20 off Plastc: http://share.plastc.com/x/Lvq604

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