Implementation of the new system will likely bring a sense of relief to consumers and business owners following a number of high-profile credit card system hacks at Target, Neiman Marcus and Michaels.Д®arlier this week, Target and Neiman Marcus executives told a Senate Judiciary Committee that once the new system is in place less hacks are likely to occur. If the merchant has the proper chip-and-PIN system but the bank hasnвЂ™t issued a new chip-and-PIN card to the customer, then the bank is liable. That means if a merchant is using the old swipe-and-sign system they are liable for the fraudulent charges if the customer has a chip card. When the new system is in place, if an incident of fraud occurs the party with lesser technology will bear the liability, Balfany says.

Whenever card fraud happens, credit card companies must determine who is liable for the costs.

Even if the credit card information is gathered, without the chip the card is useless.ДЄnother significant piece of the new system is creating a shift of liability, say Carolyn Balfany, MaterCardвЂ™s expert on the new EMV system. The chips make reproducing a card difficult for criminals. Under the EMV system consumers will use a smartcard embedded with microchip and provide their PIN to complete a transaction. In a move that could better protect consumers from massive security breaches, major credit card companies are looking to implement a chip-and-PIN system instead of the tired and true swipe-and-sign method used across the country.Д«oth MasterCard and Visa have outlined a planned shift to the new EMV system and set a October 2015 deadline to begin using the system, The Wall Street Journal reports. Goodbye credit card signatures and hello PIN numbers.

Visa credit card hack 2015