4 Frequently Asked Questions about your EMV Chip Credit Card
The transition from cash to credit cards is an inevitable one in today’s economy. As a consumer of the new economy, you may also have to encounter unpleasant surprises like credit card fraud. It is always better to err on the side of caution and opt for an EMV/Chip card.
EMV, stands for Europay, Mastercard and Visa - is a global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions.
Here are four frequently asked questions to help you understand the EMV cards.
1. Why are EMV cards more secure than magnetic strip cards?
An EMV card provides a transaction code for each transaction, a special security feature not available in traditional magnetic strip cards. The magnetic strips on traditional cards contain unchanging data. Whoever accesses that data, gains the sensitive card and cardholder information necessary to make a purchase. In contrast, the EMV card creates a unique transaction code, for every transaction, that cannot be used again.
2. Do all merchants who accept magnetic strip cards also accept chip cards?
Your new EMV card will have the new chip technology as well as the magnetic strip which will still allow it to be swiped, if needed. Merchants that accept your credit card today will be able to accept your credit card in the future as well. However, a PIN will be needed to withdraw cash at an ATM.
3. How do I pay at a chip-enabled terminal?
Making purchases with your chip-enabled card is easy. Simply insert the chip end of your card into the terminal with the chip facing up and follow the prompts on the screen. Remove your card from the terminal when prompted, then sign for your purchase and take your receipt. EMV cards, like magnetic strip cards, are processed for payment in two steps: card reading and transaction verification. Chip card transactions take a bit longer than magnetic strip transactions currently, but will eventually speed up as the technology improves.
4. What are the advantages of a chip card?
It is very difficult to create a duplicate card of a chip card as compared to a magnetic strip card as it provides protection against copying data. When a retailer uses a chip-enabled payment terminal, the chip card technology helps prevent unauthorised usage of your card.
If you find yourself at a point-of-sale terminal and you use a chip card, have no fear. Chances are likely that you would have made a safe and secure transaction.
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