What You Need to Know About Chip-Enabled Cards
Jackie here. Have you been using your new chip card? These new chip-based cards are more secure than the magnetic strip cards alone, but more is still needed. The new chip cards aren’t the magic solution to credit card fraud.
How Are Chip Cards More Secure than Magnetic Strip Cards?
Chip cards look much like a traditional magnetic strip card with one difference: a golden chip on the front of the card. This chip is called an EMV chip (stands for Eurocard, Mastercard, Visa) and contains the information needed for a card to work properly. Today’s chip cards have both a magnetic strip (to be used when a terminal isn’t chip-enabled) and a chip, but as more retailers become compliant cards may eliminate the magnetic strip.
The technology in the chip protects PoS transactions and consumer data. The chip transactions also generate a special one-time code that further protects your information.
The Security Limitations of Chip Cards
While chip cards are more secure, they aren’t fraud proof. Lost and stolen cards can still be used for in-store and online purchases. Additionally, whenever a transaction is performed using the magnetic strip, data can be captured if thieves have installed malware on the payment terminal. Many of the chip cards used in the U.S. don’t have a PIN feature, an important added layer of protection that helps to ensure that only the registered user can use the card.
How to Protect Yourself
Now that you’ve got a new chip card in your wallet, here are some easy tips to protect yourself and reduce your chances of credit card fraud.
Use Chip Readers When Possible– If you can, insert your card into the chip reader rather than swiping your card. This limits the exposure of your sensitive data.
Be Careful with Your Card– Once you get a card, take care of it. Activate it promptly and store it securely. If you do lose your card, report it as soon as possible.
Check Your Statements– Check your bank and credit card statements often. If you notice a problem, report it.
The new chip cards are more secure, aren’t foolproof. It’s important to still keep an eye out for suspicious transactions on your statements. October 1st, 2015 marked the day when parties who do not support EMV technology may be held liable for fraudulent charges. Despite this date, many card issuers and retailers will slowly transition to the EMV technology in the coming months and years.
Updated 1/15 to provide clarity around the October 1st deadline.
Comments
Comments are closed.
This was not written well at all, and muddied the waters of understanding.
The magnetic stripe on the back of the card contains your card number. A clever crook can capture that card number and use it over and over again.
The chip on the front of the card generates a new card number each time you use it. That new card number can only be used once, so it doesn’t matter if the crook captures the number, because it won’t work anywhere, forever.
So always try to use the chip-reader first. If it doesn’t work then swipe your card the old-fashined way.
Retailers are “encouraged” to install the new chip-enabled terminals, because in time, *they* will become responsible for fraudulent charges made using the magnetic stripe. Said another way: If you’re a retailer and you don’t install chip-enabled readers, credit card companies will “shift the liability” to you if you accept a fraudulent charge made using the stripe.
This was not written well at all, and muddied the waters of understanding.
The magnetic stripe on the back of the card contains your card number. A clever crook can capture that card number and use it over and over again.
The chip on the front of the card generates a new card number each time you use it. That new card number can only be used once, so it doesn’t matter if the crook captures the number, because it won’t work anywhere, forever.
So always try to use the chip-reader first. If it doesn’t work then swipe your card the old-fashined way.
Retailers are “encouraged” to install the new chip-enabled terminals, because in time, *they* will become responsible for fraudulent charges made using the magnetic stripe. Said another way: If you’re a retailer and you don’t install chip-enabled readers, credit card companies will “shift the liability” to you if you accept a fraudulent charge made using the stripe.
I’ve been told the chip cards need to be protected with a special envelope when in your wallet to guard against electronic detection and theft. Is this true?
I’ve been told the chip cards need to be protected with a special envelope when in your wallet to guard against electronic detection and theft. Is this true?
About the chip card.
I was at a lowes one day and used my ATM card using the chip, the transaction was OK but when I went to show the cashier my ID he said the register said he did not need to ask for it. Now to me that is no better than the old magstrip. It may protect from malware on the terminal but not being lost or stolen. ID Needs to be checked, most of us have nothing to hid, be a proud American and show it.
About the chip card.
I was at a lowes one day and used my ATM card using the chip, the transaction was OK but when I went to show the cashier my ID he said the register said he did not need to ask for it. Now to me that is no better than the old magstrip. It may protect from malware on the terminal but not being lost or stolen. ID Needs to be checked, most of us have nothing to hid, be a proud American and show it.
What about the 60 Minutes expose of existing software that can remotely steal your account date? What protections are in place or will be put in place to address this problem? Thank you, in advance, for your reply?
What about the 60 Minutes expose of existing software that can remotely steal your account date? What protections are in place or will be put in place to address this problem? Thank you, in advance, for your reply?
What about the ads I see on TV where the remote scanner grabs you card info merely by passing you by on the street?
What about the ads I see on TV where the remote scanner grabs you card info merely by passing you by on the street?
The only thing that will cure credit card fraud is stiff prison sentences. It disrupts commerce and costs people a lot of money. Today, no one takes it seriously. I had my card no. used for a $20 purchase in a liquor store. I never lost it, so I have no idea how anyone had my card number. I told the store I wanted to press charges, since they had the perp on film. They said they would send me a form to fill out. I never got it. I think a 25 year minimum prison sentence would end this crime for good.
The only thing that will cure credit card fraud is stiff prison sentences. It disrupts commerce and costs people a lot of money. Today, no one takes it seriously. I had my card no. used for a $20 purchase in a liquor store. I never lost it, so I have no idea how anyone had my card number. I told the store I wanted to press charges, since they had the perp on film. They said they would send me a form to fill out. I never got it. I think a 25 year minimum prison sentence would end this crime for good.
I cannot get cash-back when I use the chip card function. It also does not ask for my pin. It is a Debit Cart, but it seems to be read as a credit card. My issuing bank has no answer for me when I inquire about the problem.
I cannot get cash-back when I use the chip card function. It also does not ask for my pin. It is a Debit Cart, but it seems to be read as a credit card. My issuing bank has no answer for me when I inquire about the problem.
I saw a PBS show where an expert went to an electronics store an bought components then built a reader. The reporter walked past. Then the expert transacted an on line purchase with the captured data.
How is that more secure without a PIN?
I saw a PBS show where an expert went to an electronics store an bought components then built a reader. The reporter walked past. Then the expert transacted an on line purchase with the captured data.
How is that more secure without a PIN?
It is outrageous that in our country we don’t have Chip/PIN cards as they have all over Europe. The Chip/Signature cards are not secure at all. If one is stolen, it can be used forever by anyone. If a Chip/PIN card is stolen, it is useless immediately. This is why we need firm Federal regulation of the Financial sector.
It is outrageous that in our country we don’t have Chip/PIN cards as they have all over Europe. The Chip/Signature cards are not secure at all. If one is stolen, it can be used forever by anyone. If a Chip/PIN card is stolen, it is useless immediately. This is why we need firm Federal regulation of the Financial sector.