Many Money reVerse readers have received a new debit or credit card that contains an embedded chip. 67% of respondents of my poll in early June 2015 noted that they had received a chip card already. I’m included in this group. By the fall of this year millions of Americans will be carrying these credit and debit cards that have the embedded chip technology.
The key reason for embedding chips in the bank cards is to improve the cardholder security.
Cards that do not have chip technology use a magnetic strip that is swiped when you make a purchase. The key thing about this method is that your credit card number (15 or 16 digits shown on the front of the card) is passed to the merchant and used to authorize / guarantee the payment between the bank and the merchant. Your credit card number is desired by those striving to commit credit card fraud. The 15 or 16 digit card number is key – literally. This number in the hands of the wrong person can be problematic for us as cardholders. These numbers, when stolen, are often used to fraudulently duplicate physical cards, make online purchases and possibly open other fraudulent accounts in your name thus making unsuspecting cardholders victims of identity theft.
Cards with embedded chips, when paired with updated card processing terminals in stores, will initiate processing that will result in a unique authorization code for each particular transaction being generated at the time of the transaction. The most important fact to note is that your credit card number will no longer be used for authorization and it will not be passed along to the merchant for this purpose. This lowers the exposure of your card number thus lowering the possibility of theft.
For this type of authorization to take place, the stores in which you shop will need to upgrade the credit card terminals that are at each Point of Sale station. When this is done, instead of swiping your card to pay for products and services, you will insert it into a machine slot like those at an ATM. You will then receive a confirmation from the machine that the card has been processed and it can be removed. One difference that we will need to note is that the card will need to be left still in the machine for a few seconds for the authorization to be completed unlike the quick swipe that we do today.
All chip cards are being shipped with the magnetic strips on the back like we have today. This allows the chip cards to be used in locations that do not have updated pay terminals. In the fall of 2015 we should start to see many merchants with updated equipment as we walk in armed with our new chip-embedded debit and credit cards. If you have an option to choose to use the chip or the swipe method, use the chip method every time for improved security.
With this processing change, we will need to continue to sign for payments based on the merchant’s guidelines. The added chips are not changing this requirement in this phase of the implementation.
Keep and eye on your mailbox and with your favorite stores to see these planned changes come to reality right before your eyes!
That's a lot to absorb. Got questions? Let me know by asking them by using the comments section here!
Carolyn
August is a month of great things - including my birthday!
I get free gifts for my birthday. Just by asking, you also can get these same gifts during your birthday month!!
In getting ready for my birthday month, I have a ritual that I perform. For years I've prepared to log, track and plan when to redeem and enjoy the various birthday gifts that I am assured to receive via email.
For the price of registering on the websites of various restaurants, retail stores and spa services venues, I'm rewarded with a host of birthday gifts and offers during the month of August. I've noticed over the years that if I don't redeem the free gifts the offer may not be extended the next year. Oh well... Even with that fact in mind I can say that my email is filled with valuable birthday treasures. Happy Birthday to me!! Happy Birthday to me!!
Wonder what I get as gifts? Items to note are free birthday meals from Rockfish Seafood Grill, Cowboy Chicken, The Keg Steakhouse and a Chamberlains Restaurant of my choice (seafood or steak). If my wellness coach is reading this I must point out that I'm not enamored by the food. Not me!! (wink wink). My favorite gifts are the ones that are NOT food including a free beauty gift from Sephora, $5 off any purchase at DSW and $10 off any Victoria's Secret purchase. There!!
Would you like to get any of these birthday gifts for your special day? If the answer is yes simply go to the websites of those establishments and register for their newsletters and/or birthday clubs. It's free and the gifts will begin pouring in throughout your birthday month.
Interested in watching my log of what gifts are coming in? 
Think that understanding the US stock market is out of reach for you? Many of us do. According to an April 2015 poll by Savvyroo.com 65% of Americans were investing in the US stock market in 2007 and that number dropped significantly after the economic downturn that we experienced in that same year.
The poll also showed that in April 2015 55% of Americans are investing in the stock market as individual confidence in this investment medium has been steadily increasing.
In the bible book of Matthew, the principle demonstrated in parable of the talents can be applied to our lives today when we look at the concept of using money that we have in our hands to prosper. In this story it was clear that we are expected to increase what we are given by the master. The stock market specifically is not referenced in this parable but I see our financial markets as a method in which I use to generate increase which results in my promotion to be made ruler over many things. You should also see this way! (See Matthew 25:14-30)
Having knowledge of our US stock markets can provide very tangible benefits to everyone – even those that are not actively trading stocks. Here’s 4 compelling reasons that everyone should invest in themselves to become market savvy.
1. Making the most from your retirement funds requires you to know how to invest.
Carolyn
Ready to go to personal finance school? Money reVerse online webinars are coming soon!
Monthly group teaching and coaching sessions on getting started on improving your financial condition. Topics will focus on the areas of budgeting/spend management, debt reduction, credit score increase, investing, savings legacy planning, current market and so much more! Join these online session from your computer, tablet or Smartphone device! No software downloads required.
Sign up for individual topics that interest you! Each session is reasonably priced and will result in expanding your financial knowledge and advancing your financial position!
Money reVerse webinars start in August 2015. 
Cards with chip technology are easily identified by a small gold rectangular raised emblem that appears on the front left side of the card. This chip is located just above the first four numbers of the card.
These cards, when paired with updated terminals in stores can be used to make purchases more securely as the embedded chip generates a unique code for each payment authorization instead of using the number on the card.
Because of the added technology associated with these cards, they are more difficult to duplicate. Those that choose to fraudulently duplicate cards for profit tend to target the older magnetic strip cards for their card theft activities. Using chip cards in countries outside the US has resulted in lowering the number of fraudulent transactions and stolen cards.
Stay tuned to Money reVerse for more about chip cards and new security regulations that will be in effect in October 2015.
Until then, please take about 10 seconds and respond to a Money reVerse Chip Card poll.
Carolyn
In mid May, I made a trip to Kansas City, Missouri for the weekend and I was hanging with the Associated Hairdressers and Cosmetologists of Missouri. I mean it when I said that this was such a beautiful group!
I was honored to be contacted by AHCM to develop and propose a financial class to be included in the cosmetology instructur license renewal seminars. My response was a hearty "Let's do it!!"
I developed a class that focused onEmpowering Students for Financial Success.
Once accepted, the class was included in the curriculum for the State of Missouri cosmetology license renewal curriculum that was made available for cosmetologists by AHCM.
I taught this class in the AHCM License Renewal education that was held in Kansas City, Missouri on May 17th 2015. In this session I shared about Managing a business instead of nurturing a hobby, Managing personal finances with a variable income stream and trends in consumer payments. The cosmetology instructors that were a part of the class were from all areas of the state of Missouri. Each was so welcoming and very engaged in the class! This did not feel like work at all!!
Financial Authority: Part 1 - No Personal Financial Ignorance