What Makes Credit Card Chips Safer?
You may have noticed when you go to the grocery store or a gas station that the clerk will ask if your card has a chip in it. These chips have created quite a buzz as they’ve revolutionized security for card payments. What exactly is it about these credit card chips that makes them safer than cards with the traditional magnetic strip, and are they really as safe as advertised? We’ll cover that in the blog below.
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How do EMV cards Work?
EMV-which stands for Europay, Mastercard and Visa-is considered the global standard for cards equipped with chips. These cards contain a microprocessing chip that contains the account information inside of it. When the card is inserted into the terminal or waved in front of it, the system will read it. This is different from a conventional card with a magnetic strip, which reads the account information when the card is swiped.
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The reason cards with chips are safer is because they can’t be used by a hacker to make purchases. Each transaction that occurs must have a separate authentication code that can only be used once. Additionally, the information from the chip cannot be duplicated to make another card, and duplicating the chip is nearly impossible. For even more safety, having a PIN number can provide you with even more security since the user will have to know that PIN number to make any kind of transaction at all. This really comes in handy if your card is lost or stolen.
Everyone seems to be making the switch to cards with chips. Not only are they more secure than traditional cards, but they’re starting to become the standard for banks that issue debit and credit cards. If you haven’t gotten on board already, you probably will sooner or later!