The card, issued by GE Capital Retail Bank will sport both mag strip and chip technology, allowing card holders to use the card wherever they chose to shop. Sam's Club accepts chip-enabled cards across the chain and its parent company Walmart accepts them at most locations.
Chip enabled cards are harder to counterfeit than traditional mag strip cards. Mag strip credit cards contain a single, static security code, while cards with a chip embedded in them generate a different security coded each time it is used. Currently retailers are not held responsible for credit card fraud committed in their stores. Starting in October 2015, however, the liability will land with either the credit card company or the retailer — whoever has less stringent security.
“MasterCard has taken a strong stance on the need for the US market to make the transition to chip-enabled credit cards for the benefit of cardholders and merchants alike,” said Chris McWilton, president North America, MasterCard. “This move by Sam’s Club makes them a trailblazer in getting chip cards in the hands of businesses and consumers, and leading the push toward a safer and more secure customer experience. This will no doubt help drive chip-enabled technology forward here in the US as it gains more traction.”
In addition to the chip technology the new Sam's Club-branded credit card will feature:
- No annual fee, Sam’s Club membership required
- Worldwide acceptance
- Extended warranty coverage for consumers and extended warranty insurance for businesses
- Identify theft resolution services for consumers and MasterRental coverage for businesses