No more swiping: new credit cards designed to reduce theft
For the black magnetic stripes on the backs of your credit and debit cards, Thursday will mark the beginning of the end — a shift that could be costly for retailers.
Since the beginning of credit cards, merchants were never liable if a thief used a stolen or counterfeit credit card to shop; the bank issuing the card usually made both the customer and the store whole.
But starting Thursday a subtle shift happens. If retailers who don't follow new procedures for credit card security, including the use of new cards that include embedded computer chips, then they will have to pay for what thieves steal.