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Get the Lowdown on the Pros and Cons of New Digital Credit Cards

Posted In Business, Home Technology & Gadgets - By Techtiplib on Tuesday, December 23rd, 2014 With No Comments »

With the rapidly changing and advancing technology of our day, it is no wonder that credit cards are now going digital. Companies like Coin have been working tirelessly to provide users with a card that is more of a device than a piece of plastic, and stores all financial information in one place. While these innovations are impressive and intriguing, many are still skeptical about the concept. As with any new technology, there are still hurdles to get over, and more bugs to work out. In any case, these digital credit cards are still developing at a rapid pace and will soon be a seen as a common use of payment. Keep reading to get the lowdown on these devices, and both the good and bad they will have to offer consumers in the near future:

A New Account Number with Each Transaction

Digital Credit CardCredit card companies recognize the risks associated with credit card theft and fraud, and this is why digital credit cards are designed to re-issue new account numbers with each transaction. Once you have made a purchase with one account number, a brand new account number will be issued for the next transaction. This means that at most a thief could make one transaction with your credit card number, and there is considerably greater security and peace of mind with this. 

A Single PIN Number

More than that, if the digital credit card is stolen, the thief would need to know your PIN number. This is because you must enter your PIN number to use a digital credit card number for each transaction. While the account number will change with each purchase, the PIN will remain the same. This gives you added peace of mind to know that even if your card or account number falls into the wrong hands, only those with access to your PIN will be able to complete a transaction. 

Losing the Card is Highly Inconvenient

A downside, however, is that all of your accounts may be linked to this single card, and there is always a risk of losing the card. This can be a true inconvenience because you will not have a backup card available. ATMs may be notorious for eating credit cards or debit cards, and this is a concern that you must consider before you decide to move forward with using a digital credit card.

Although they have not become mainstream in their use, some believe that digital credit cards will soon replace traditional credit cards because of the added security and convenience they offer. However, there are still some concerns about the practicality of using them. Credit card companies continue to work toward innovations and advances in this area for the benefit of consumers. So, whether you want to forge ahead and try out these new digital cards, or you prefer to wait for the kinks to be worked out, this is definitely a technology on the rise.

Author Bio:

This article was written by Dixie Somers, a freelance writer who loves to write for business, finance, and technology. She lives in Arizona with her husband and three beautiful daughters. Dixie got advice for this article from the financial professionals at Keith G. Collins Ltd., who specialize in credit counselling in Manitoba.

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