Target converts credit cards to ones with PINs

Target, which also issues a Visa credit card that consumers can use anywhere that accepts credit cards, began notifying credit card customers this week that new cards are coming. The new cards will be MasterCards and will contain computer chips as well as PINs.

Meanwhile, most banks and other credit card issuers are resisting converting to PINs because of cost and because they say customers do not want another piece PIN in a world filled with passwords.

Banks are hanging on to signatures as a way of verifying a persons identity, even though everyone knows that signatures are a charade that can be scribbled and still be accepted. In many cases, for purchases less than USD 25 or USD 50, signatures arent even required on signature credit cards.

For now, consumers using the Target credit card will need a PIN to use it in a Target store. Its not yet clear whether consumers will be able to use it in other stores or restaurants without a PIN.

Target customers getting the new credit card will also get a new account number. So they will need to give their new card information to any companies that are paid automatically, such as for gym memberships or cell phone service.