What You Need to Know About EMV and
data breaches and identity theft reports have heightened consumer aware-ness
around the security of payments. Consumers may find themselves asking, “How can I
better protect myself and my personal financial information?” EMV cards, also
known as chip cards, allow consumers to conduct all of their daily card
transactions with added security features to protect their information. And more
than likely, EMV cards are coming to a bank near you soon.
What is EMV?
abbreviation for Europay, MasterCard and Visa—is an internationally adopted
payments standard that utilizes microchip technology to authenticate and
process debit card and credit card transactions. EMV cards contain an embedded
microchip that provides stronger security features not possible with
traditional magnetic stripe cards.
Why is EMV so
put, chip cards are more secure. By using the chip technology instead of
traditional magnetic stripe technology, chip cards offer enhanced protection of
cardholder information while also reducing fraud resulting from counterfeit,
lost and stolen cards. For example, fraud from lost and stolen cards was cut in
half when chip cards were introduced in the U.K. Convenience while traveling
internationally is an additional benefit of chip cards. Many other countries
have already adopted the EMV standard so you can easily use your chip card when
traveling abroad. And not to worry, make your online purchases with your chip
card in the same way you use a magnetic stripe card.
now, chip cards still feature a magnetic stripe so they work on all payment
terminals and ATMs. However, using your chip card will mean a slightly
different experience at the checkout counter. To help remember some key points
about using a chip card, think CHIP:
Carry your chip card with confidence. By
storing your card’s data on a chip, your account information can be changed dynamically
with every use, making it nearly impossible for fraudsters to successfully
copy. This is a big advance from magnetic stripe cards.
Harness its security advantage. Chip cards
protect against fraud resulting from counterfeit, lost and stolen cards by
providing strong transaction security features not possible with traditional
magnetic stripe cards.
Insert your card in the terminal. Rather than
swiping a traditional magnetic stripe card, cardholders will insert or “dip” a
chip card into the reader where it will stay for the duration of the
transaction, similar to the way most ATMs work today. Although your chip card
still has a magnetic stripe to accommodate older terminals, newer terminals
with a chip reader will prompt you to insert your chip card instead.
Pocket your card when done. Don’t leave your
card behind! Since your chip card will remain in the terminal during the
transaction, remember to take your card after the transaction is completed.
chip cards offer a higher level of security, current magnetic stripe cards will
continue to be secure, especially if you keep your PIN a secret. Be sure to
monitor your card activity regularly and immediately report lost or stolen
cards. For more information about EMV, chip cards and how to get yours today,
contact your local community bank.
information is provided with the understanding that the association is not
engaged in rendering specific legal, accounting or other professional services.
If specific expert assistance is required, the services of a competent,
professional person should be sought.
Provided as a public service by the member banks of
the Community Bankers Association of Oklahoma.