Credit Corner
In the Blink of an Eye
There is new credit card technology that will allow creditors to load your personal information onto your credit card. A consumer can then waive the credit card in front of a scanner to pay for purchases. No signature is required for purchases under $25. Creditors are using radio frequency identification (RFID) chips to hold your information. Each creditor may have a different name for their credit card, but the technology is the same.
The thinking behind this concept was to speed the processing time of each transaction. For fast food restaurants and businesses that promise quick service, this is very appealing. The time needed for each transaction is a fraction of a second, in comparison to handing the clerk your card, swiping it and then signing the receipt.
Although just recently developed for credit cards, RFID chips have been used for quite some time in libraries for books, CDs, movies, I-Passes —which allow drivers to pay tolls without waiting in line—student IDs and for tracking inventory. RFID chips will soon be placed inside passports.
However, this new, convenient technology also makes identity theft easier. Since the RFID chip on your credit card is always available for use, the possibility of someone stealing your information is very real. Thieves with the right equipment can scan your RFID chip on your credit card while it sits in your wallet and without your knowledge. After such a scan, they would have complete access to your credit card and personal information.
What can you do to protect yourself? The government will be installing a shield on your passport to protect your information. You can make your own homemade shield using aluminum foil and wrapping it around your card. The foil blocks someone from scanning your credit card.
If you receive a credit card with a RFID chip and you do not wish to have it, you can return the card and request a traditional credit card. However, if you decide you like this convenient technology, remember to shield your card.
New technology is great. Protecting yourself is priceless. tpw
The thinking behind this concept was to speed the processing time of each transaction. For fast food restaurants and businesses that promise quick service, this is very appealing. The time needed for each transaction is a fraction of a second, in comparison to handing the clerk your card, swiping it and then signing the receipt.
Although just recently developed for credit cards, RFID chips have been used for quite some time in libraries for books, CDs, movies, I-Passes —which allow drivers to pay tolls without waiting in line—student IDs and for tracking inventory. RFID chips will soon be placed inside passports.
However, this new, convenient technology also makes identity theft easier. Since the RFID chip on your credit card is always available for use, the possibility of someone stealing your information is very real. Thieves with the right equipment can scan your RFID chip on your credit card while it sits in your wallet and without your knowledge. After such a scan, they would have complete access to your credit card and personal information.
What can you do to protect yourself? The government will be installing a shield on your passport to protect your information. You can make your own homemade shield using aluminum foil and wrapping it around your card. The foil blocks someone from scanning your credit card.
If you receive a credit card with a RFID chip and you do not wish to have it, you can return the card and request a traditional credit card. However, if you decide you like this convenient technology, remember to shield your card.
New technology is great. Protecting yourself is priceless. tpw