Two major American credit card companies are planning to issue chip-based credit cards like the ones Europeans are used to using on a daily basis. Both Wells Fargo and JPMorgan Chase have announced that theyll be testing their chip-based cards with a select group of customers as early as June.
While Europe has long had this system, the United States has been fairly slow to respond to the change. That, however, seems to be costing them money. When Americans go abroad, acceptance problems have cost issuers an estimated $4 billion in missed transactions.
The JPMorgan card will have both the microchip and the magnetic stripe on the card so customers can use it either throughout the US or in Europe. While its an excellent idea to upgrade to this system, according to many analysts, most wonder if its fairly useless given the rising popularity of mobile payments that is likely to be adopted worldwide in the upcoming weeks and months.