US banks are soon coming up with a big change. They are working on a concept of replacing old magnetic strip credit and debit cards with new type of cards. These new cards have computer chips allowing the storage of account data more securely.

Magnetic strip card is almost five decades old technology. Majority of the nations have changed the technology, but in the US it is still present and its benefit is taken by thieves. A data stated that almost 50% of the credit card frauds take place in America.

As per Barclays, it happens even when the US accounts for around 25% of all credit card transactions. By the end of the year, the switch considered to be a significant one, will be done. In order to have the change, tens of thousands of merchants will be required to update their equipment to have this chip-and-sign transaction rather than that of swipe ones.

In the new card, personal data is safer. The chip will have a unique code for every transaction made on card. Therefore, even if a thief acquires a code, he won't be able to make another purchase. It is very hard to duplicate chip cards.

Chip cards are considered to be much safer than magnetic cards that are riskier, as if thieves are able to have a cope of one's credit card information then it can be copied on to fake cards. Ellen Richey, vice chairman of risk and public policy at Visa, said that the chip technology aims to stop copying of the card.