5 Facts About The Microchip In Your Credit Or Debit Card
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You may have already used one – the new chip readers that are in use by merchants both large and small. Instead of a swipe, you insert your credit card until your transaction is complete.

Here are 5 Facts About Them and Their Use.

1. The Chip Is Called An EMV Chip. It is the new global standard for credit cards and debit card payments. It is named for its developers (Europay, MasterCard and Visa). It’s not new technology. It’s been around for about 30 years but made its first appearance in the USA about 5 years ago.

2. It’s Safer. A magnetic stripe (what we have swiped in the past) supports “dynamic authentication” which makes it possible for the information to be copied or skimmed by card reading devices. The new chip technology interacts with the machine to encrypt data and authenticate the card.

3. A Shift In Liability Has Already Occurred. If a retailer, credit card processor or card issuer has not changed over to chip technology, they are now liable for any fraud if they have failed to upgrade their system. This is a considerable financial risk that went into effect in October. The considerable financial risk involved was put in place to make the switch to this technology happen quicker.

4. Three Systems Are In Place. Right now, merchants are using either chip and PIN or chip and signature. Both work exactly as you would expect. A chip and PIN (personal identification number) system will require you to set a PIN and use it. Chip and signature allows you to use the chip and then sign for the transaction. The old swipe and sign– or swipe and go – methods are also still being used. Expect them to go away with time and be ready to use the new chip technology.

5. It Will Get Better. Right now, you may find chip technology confusing. If you’ve stood by the machine and read the “Do not remove card” message, this technology seems very slow. Don’t despair; it’s protecting you. You also may have put your card in a reader only to have the clerk tell you that their system isn’t reading chips at this point. Chip technology will catch up – especially with the liability shift that is now in place. Just as you learned to swipe instead of handing your card to a clerk; you’ll learn to insert the chip and take a little extra time to be better protected.

As credit and debit card providers work with companies to improve safety, the companies must take responsibility to keep customers as safe as possible on their end. Something as simple as a paper trail can lead to identity theft and/or credit card fraud. All sensitive papers still need to be destroyed. Businesses can use an Document Destruction Phoenix company to make sure that papers are put in locked bins when they are no longer needed and completely destroying to end the paper trail.


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