Sam’s Club upgrades membership cards

Sam's Club rolls out new membership cards

Sam’s Club is offering its members new cards with a microchip security feature.

The move comes after a series of data breaches involving other retailers. Traditional cards have magnetic strips that contain a customer’s financial information, but the new cards generate a unique authorization code with each swipe.

“The chip will actually store all the necessary information instead of the magnetic strip and this will make the card much more hard to counterfeit,” said John Talamanetz, membership manager for Sam’s Club.

To process the microchip cards, stores needs all new readers and have to train employees.

Sam’s Club began offering its cards on Monday. Other major U.S. retailers, including Target, are working to roll out chip cards in the coming months.

Target was the victim of a massive security breach during the holiday season that affected millions of customers.

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