Credit Card Chips: Everything You Need To Know

CREDIT CARD CHIPS EVERYTHING YOU NEED TO KNOW WHAT IS A CHIP CARD? It goes by many names: Smart card • Chip card • Smart-chip card • Chip-enabled smart card Chip and sig (as in signature) • EMV smart card EMV card The "EMV" stands for Europay, MasterCard and Visa, which are the three companies that helped create the standards for chip card transactions. The chip replaces the magnetic stripe. HOW DO I USE IT? ALES TAX TOTAL ........... 15.99 STEP I STEP 2 STEP 3 Dip the card chip first into the Leave the card in the reader Wait 3-5 seconds while the bottom of the card reader. and follow the prompts. coded transaction occurs. Then remove your card. WHY IS IT BETTER? 1234 S678 9012 3456 CREDIT CARD A chip card creates a unique In case of a data breach, the If the chip card is swiped as a magstripe card, it is like the chip one-time transaction code every card's coded transaction time it is dipped. Old magnetic information would not be able doesn't exist and the extra stripe cards always send the same information, creating easily stolen data. to be copied onto a card and security is lost. This leaves your used or sold online to personal information fraudsters. vulnerable. SIGNATURE, NOT PIN Unlike most European countries, most U.S. banks are issuing chip-and-signature cards, not chip-and-PIN cards. They should still work in Europe, usually. You'll just have to sign. WHY AM I HEARING ABOUT THIS NOW? To help prevent counterfeit fraud, merchants were asked a few years ago to update their credit card processing terminal to take the new chip cards. The deadline was Oct. I, 2015. OCTOBER As of that date, if the EMV terminal is not used when a fraudulent payment is made, the merchant became liable for the cost. Previously, banks ate that cost. CHIP CARD TIPS If you don't yet have a chip card, ask your bank. Some issue them on request. Be patient - transactions take a few seconds longer. Don't forget your card in the reader. The zero-liability policies remain in effect, meaning your card issuer will return the stolen funds to the card and issue you a new one. CreditCards.com © 2015 CreditCards.com 1234 S678 901L2 CREDIT CARD 9012 3456