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Date Published: 14/07/2022

Do you use Mastercard or Visa? New changes are coming to credit and debit cards

Financial institutions across Spain and Europe are ditching cards with magnetic strips

As the world moves more and more towards a cashless society, Mastercard and Visa are leading the way in Spain and across Europe in ensuring the safety of using cards as the primary means of payment, by removing the magnetic strip from their credit and debit cards.

The magnetic strip was first introduced in the early 1960s and paved the way for a larger number of businesses to be able to accept card payments. Now though, with technology advancing all the time, the method has had its heyday and financial institutions believe the chip and pin system, which is already widely used in Spain, is far more secure and has the additional benefit of allowing contactless transactions.

Mastercard will be the first company to implement the new system and from 2024, newly-issued credit and debit cards won’t be required to have a magnetic strip.

You might also like: Tourists in Alicante and Murcia amongst 60 targeted by credit card thieves

However, it will be 2033 before no cards issued will have the strip, allowing companies plenty of time to phase out the old technology to be replaced with chip and pin devices.

Since the late 1990s when the EMV standard was introduced, chip cards have quickly become the preferred method of payment for most, now used in 86% of face-to-face transactions globally.

“It’s time to fully embrace these best-in-class capabilities, which ensure consumers can pay simply, swiftly and with peace of mind,” according to Ajay Bhalla, president of Mastercard’s Cyber & Intelligence business.

“What’s best for consumers is what’s best for everyone in the ecosystem.”

Also of interest: Spanish bank charges have increased by 34 euros since last year

Image: Freepik

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