Changes to credit and debit cards from 2024 and their impact on tourism

21-04-23

• Technological innovations will be introduced to make card payments more secure.

Credit and debit card purchases are becoming increasingly common, to the detriment of cash. Most establishments are now accepting card payments and the previous limits for this method of payment have been reduced.

Faced with the rise of cards, some banks have communicated the updates that will be introduced by 2024 in Spain. Although the plan is European, it is intended to be implemented later in other parts of the world, such as the United States and Canada.

Magnetic stripes will be eliminated for security reasons

MasterCard will be the first financial institution to make the change in Spain. It will begin during the current year and will consist of eliminating the magnetic stripes on cards, the often black stripe on the back. These strips contain the information that allows the card to be identified. Therefore, when damaged by rubbing or demagnetised by proximity to an external magnetic field, the card is rendered unusable. 

This measure promises to increase security and thus reduce the risk of fraud. By 2024, all credit and debit cards issued in the country will be stripe-free. By 2033, no card in circulation will be able to have them. In the US and Canada, the magnetic stripe will be phased out later, in 2027. 2033 is the target date for achieving the common goal of the European plan.

No need for a PIN to pay

Instead, biometric systems will be installed, which some cards, along with the magnetic stripe, already have in place. They work on the basis of a combination of an electronic chip and the account holder's fingerprint. In this way, the cardholder will be able to make payments with his or her fingerprint alone, to verify identity and confirm payment without the need for the four-digit pin.

Banks claim that the microprocessors in the chips are more secure. According to them, the new biometric cards mean an increase in card security, as currently, due to the magnetic stripe, purchases can be made without entering the pin.