Amex to deploy Internet card with embedded chip

ajlaw writes "American Express with be deploying a new blue card the contains an embedded chip for use when making purchases on the Internet. The card's chip will be used for security in shopping on the Web. The company will distribute free card readers for customers to hook up to their computers. " Wierd-they have no details, but apparently the card swiping is supposed to be more secure then typing it in-but I'm not sure how.