Big Banks Working to Phase Out Credit and Debit Cards

Big Banks Working to Phase Out Credit and Debit Cards

Do you use a debit or credit card to access your bank account? That could soon change.

In this May 9, 2012, file photo, a Visa credit card is tendered at a store in New York’s Times Square. Disputing a credit card charge isn’t only for billing errors and fraud. Consumers can also dispute a credit card charge if they’re dissatisfied with the quality of merchandise, service or delivery. (AP Photo/Richard Drew, File)

Big banks are looking to eliminate debit cards in the future through advanced methods of withdrawing money, according to New York Times .

Chase, Bank of America and Wells Fargo are looking forward to eliminating debit and credit cards in favor of new banking methods including finger print recognition, smartphone bank card scans and vein patterns through palm scans. These methods are already working in the nations of Japan, Brazil and India.

These new innovations are intended to stop bank account fraud in which hackers take money out of customers’ bank accounts without having to put in a 4-digit PIN number through mobile apps, according to a KrebsOnSecurity report.

 

“The new innovations are too scary to think about,” Candace Huitt, UCO Student said. “Rise of technology could be a downfall for people who depend on smaller banks and are not as tech savvy as the rest of the nation.”

In the past, consumers mostly had to worry about the “skimming” of information from the magnetic strips on most debit and credit cards. Now most people carry their cellphone instead of a wallet, which has given rise to these new scams – especially since all modern smart phones now have near-field communications (NFC), which enables the smartphones to share encrypted information at a short distance. This gives them the ability to access the bank account through any ATM and shares information on the phone screen.

“I just think it is awful that fraud exists,” Sami Karbelk, UCO Student said. “We just had a new chip reader installed in our current cards and we are now getting rid of it? I am not ready for the change so quickly.”

Here is the list of phones that have the near-field communication technology.

Innovations like these from the big banks to further help their customers should eliminate credit and debit cards completely, right? MidFirst Bank is the official bank of the University of Central Oklahoma (UCO) and the Banking Central manager, Josh Morava, believes there will still be cards in the near future.

“I still think we will have debit/credit cards and it will not change because we have just gotten the new chip readers for all of our customers,” Morava said. “Cards will not be gone and although it is true that the innovations are out there, local banks can’t afford to adapt to the uprising Android/iPhone pay that is widely available to most members.”

The new security measures are being used in test cities, according to the top banks, and are pending results for a nationwide release.

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