Debit cards are replaced at an increasing frequency. This can be quite frustrating for a debit card user, but there are good reasons for it.
One of the reasons why debit cards are replaced so frequently is that many debit cards tend to be given new features. One example of this is chip and pin. Chip and pin is the system where a customer needs to enter a pin number before getting a purchase. This has cut down credit card fraud on a person to person basis by as much as 80% in some countries where it has been introduced, and this is being introduced to Australia where the aim is to have all debit card face to face transactions using chip and pin by the end of 2015.
The “chip” in chip and pin is an integrated microchip on the debit card. This can be used to store the information in an encrypted way, so a terminal can read the information but it can not be hacked by a person who manages to steal the card. Earlier debit cards did not have this chip and to enable chip and pin on a wide scale basis the debit cards are all being replaced.
Another new feature that many debit cards have is the networks that they use. It used to be the case that some debit cards could only be used in Australia. With the increasing use of MasterCard and VISA then debit cards are now able to be used on their worldwide networks, as well as able to use internet and mail order facilities. To get a debit card into being a VISA or a MasterCard debit card then the card needs to be replaced.
Another reason why the cards often need to be replaced is that the information can be compromised by hackers. This is becoming a more common reason despite the fact that debit card providers are investing more in internet and computer security for a number of reasons. Firstly computer hacking is becoming more prevalent, secondly the investment in computer security means that companies have a better idea when security is being compromised than they did before and thirdly there is a safety first attitude prevalent now to act when a card may have been compromised.
Another reason why debit cards are frequently replaced is that there is an anti-fraud element. The frequent replacement of credit cards means that a cloned card becomes useless far more quickly even if the card holder was totally unaware of the card being compromised.
