chip? no, no. the chip is better than the strip. why? >> reporter: exactly, brooke. i actually wanted to show you the difference. i'm holding up two cards in my hand. there is one key difference. this is the european version. actually has a chip imbedded inside the card. this is the american version that purely relies on this strip on the back. the issue with the magnetic strip is that every single time you make a transaction, your information travels from the card to the payment processor and it can be intercepted by hackers. they can use your information to create duplicate cards. they can also use card scanners to get your information as well. with the european version, all your data is actually stored on this tiny little chip here. it is heavily encrypted. the encryption key is unique for every single transaction. i've been speaking to ethical hackers about this and they're telling me that if every single american had one of these cards, these mass data breaches you're seeing with neiman marcus and target probably wouldn't have