Drastic change is right around the corner when it comes to the US credit card payment network system. All of you who have or are planning on getting a credit card should be aware that both Visa (NYSE:V) and MasterCard (NYSE:MA) have announced that they plan to update their credit cards to the chip-and-PIN format which is already widely spread around Europe.
These credit cards, unlike those with the magnetic stripes which are now the main cards used around the US, have a smart card with the cards’ information and each time you swipe your card you must enter a 4 figure PIN. This type of credit card is much safer for card holders, as it’s harder for someone to steal your card and use it if they must enter a PIN that only you know in order to make purchases.
The date for the completion of this change has been proposed by both MasterCard and Visa for April 2013, by which time they will expect merchants to have processors to accept credit cards with chips in their stores.
I see this change that is coming upon us as just the first step of many when it comes to increasing the security of the transactions we make with our credit cards. This new payment system seems to bring along with it many positive benefits which are now being experienced in other places, especially in European countries.
Below I have compiled a list of the best credit cards which will soon have chips instead of magnetic stripes so that you can find the one that will suit you the best and reward you most for your spending.
Chase Freedom. With this Visa card issued by JPMorgan Chase (NYSE:JPM), you will receive $100 cash back after spending $500 within the first 90 days. Earn 5% cash back on quarterly rotating categories (up to $1,500), and 1% cash back on every other purchase you make. Enjoy 0% introductory APR on purchases and balance transfers for 15 months, with a variable APR of 13.99% to 22.99% afterwards. No annual fee. Chase Freedom even made it to our Best Credit Cards 2014 list.
Chase Sapphire. Receive 10,000 points when you spend $500 in the first 90 days. Earn 2 points per dollar spent dining and booking travel tickets through Ultimate Rewards, and 1 point for every other dollar you spend. No annual fee.