This new chip card technology — called EMV, which is short for Europay, MasterCard and Visa —sends a one-time code to process payments, rending duplication efforts useless and thereby increasing payment security.

Unlike credit cards using a magnetic strip to store payment processing information that does not change, chip-enabled cards are difficult to counterfeit. They use a unique code that can’t be used more than once. If a hacker steals credit card information from a chip-enabled card, it’ll be denied at the point of sale. The change is designed to reduce counterfeit card fraud, which makes up 37% of all credit card fraud in the U.S.

Oct. 1, 2015, marked the deadline for these changes to take place. On that date, the liability for counterfeit credit card fraud switched from card issuers to merchants. (The one exception is gas stations, which won’t become liable until 2017 because their payment collection is typically built in to the gas pumps.)

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