Money Minute: Target Takes Aim at New Card Technology

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Target moves to a new technology to protect consumers from having their personal information stolen again.

Target (TGT) is still trying to recover from the loss of consumer confidence after the security breach last year that affected about 100 million customers. It will become the first major American retailer to adopt a credit card technology that's popular in Europe. Turn over your credit or debit card and look at the magnetic strip along the back. Well, that's going away. It will be replaced next year by a chip and PIN system considered far more secure. The chip makes it harder to make counterfeits and the PIN makes it more difficult for a thief to use your card. Target is also switching to MasterCard (MA) from Visa (V).

Target's main rival, Walmart Stores (WMT), is also making news. It's going into the car insurance business -– teaming up with the website AutoInsurance.com, which allows consumers to comparison shop among six insurance carriers. This is Walmart's second foray into financial services this month. It also plans to offer store-to-store money transfers.

Sprint (S) and a group of partners are working on a new product to appeal to audiophiles who are unhappy with the sound quality of the music they get from their Apple (AAPL) iPods and other music players. HTC makes the smartphone and audio equipment company Harmon restores the highs and lows lost when music is compressed on current devices. And the new HTC One will come pre-loaded with Spotify's music streaming service.

Here on Wall Street, the Dow Jones industrial average (^DJI) rose 86 points Tuesday, the Standard & Poor's 500 index (^GPSC) added 9, and the Nasdaq composite (^IXIC) gained 29 points. Both the Dow and S&P are within 1 percent of their all-time highs.

Watch shares of Twitter (TWTR) today. The little blue bird is likely to get crushed after the company reported disappointing growth in the number of people using the messaging service, and when you're supposed to be a growth company, that's trouble. Twitter shares are far below where they began trading back in November.

-Produced by Drew Trachtenberg.


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bps163

Well investors of the tweet. They said they would not sell. Well look at the cut throat action going on now. They are dumping all of it. This one trick pony looks to be a dieing story. Just glad I did not get in on this bad news and take a loss.

May 06 2014 at 2:24 PM Report abuse rate up rate down Reply
lnm3921

Why can't all the banks adopt this chip and PIN technology now? They breaches happen repeatedly when people commonly use bank cards for purchases yet the banks drag their feet in adopting better technology to help protect us! I'm willing to dump my bank for the first bank that adopts this technology this year! I've already called my bank asking them to adopt it! Maybe if consumers would pressure the banks en masse to do it they would move more quickly.

I read they need to do it by late 2015 or they become liable for any theft. But there is Chip and Pin and Chip and swipe. I've read the PIN version is better as it constantly changes the PIN for you every its used. The strip and PIN is not as reliable.

April 30 2014 at 11:36 PM Report abuse rate up rate down Reply
elpasoworld

RE: Credit Card technology and. . . . Target.

Target lets hackers get Card info and others get card info and this does that,
who cares really.
All of the money stollen from Credit Cards and Debt Cards go into a BANK account somewhere.
EASY. . . . find the bank and freeze the money.
The receiving bank, KNOWS who the accounts belong to.
Why dont we see Interpol, or the British SS or Navy Seals dropping into these perps houses and taking them out with a rope around their necks?

April 30 2014 at 1:27 PM Report abuse rate up rate down Reply
rilri

I believe the opening price on the open market was around $45.10 on 11/8/13.

April 30 2014 at 11:31 AM Report abuse rate up rate down Reply