Target investing $100M in chip-based credit card technology after breach

by: Eric Philips Updated:

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Target is investing $100 million to implement a chip-based credit card technology, and Channel 9 has learned a Charlotte organization will play a significant role in making it a reality.

A representative with Bank of America said the bank can issue those chip-based cards now, but stores in the United States are not yet equipped to handle the cards.

Target, Michaels, Nieman Marcus and most recently a company that houses sensitive information for hotels across the country have all been breached within the last month couple months.

Financial crimes expert Chris Swecker said the hackers are criminals overseas.

“It's going to keep happening until consumers demand more security from both financial institutions and the retailers,” Swecker said.

He said credit cards with chips instead of magnetic strips are safer because the information changes every time you make a purchase.

People in Europe already use these kinds of cards.

“They've been 10 years ahead of us basically,” said local Better Business Bureau president Tom Bartholomy.

Target is now taking the lead with this new chip-based technology. The retailer has also formed a coalition with the BBB and cyber security experts.

They hope all banks and credit card companies make this change, so all retailers will have to, as well.