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The change is especially relevant given the massive fraud perpetrated against customers of Target in the fall.During a Congressional hearing last week, Target CFO John Mulligan said the company is accelerating the 0 million effort to switch to the so-called "chip and pin" system. Banks must issue cards with microprocessors and merchants need the right equipment to process the so-called "chip and PIN transactions," which is likely to happen gradually.

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So far, many banks have opted to issue chip and signature cards rather than chip and PIN cards.There is pressure to adopt the more secure system, however.Visa, American Express, and Master Card have announced that banks and merchants that are using less secure technology for face-to-face transactions by October 2015 will be liable for fraudulent purchases.US banks and merchants may finally shift to a more secure way of authorizing credit card transactions in which customers will enter a personal identification number (PIN) at checkout instead of signing a receipt.The US is the last major market in the world using the signature system, which is part of the reason why a disproportionate amount of credit card fraud happens here.

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