New credit card technology can stop fraud in its tracks and stop thieves’ cold. The technology is commonly referred to as an “EMV chip”- (Europay, MasterCard, and Visa) a microchipped payment card. The embedded microchip encrypts the card member’s information into a unique code that significantly increases transaction and account data security, when used at a chip-enabled terminal. This chip makes card cloning and fraud more difficult. It can’t be duplicated like magnetic strips found on traditional credit cards.
EMV chips have been around for more than a decade and on a large scale has proven to be safe for use. It is already standard practice in more than 80 countries worldwide. Starting Oct. 1st, the Trade Association will be requiring businesses, in the U.S., to have chip readers. Businesses not adhering to this regulation will face charges.
The chip technology focuses solely on in-store purchases and cuts down on fraud; therefore, those without a new chip card, by early October, will not effected and can still use their current card. However, by the end of this year, 63% of all card users should expect to use EMV cards, according to the Payments Security Task Force (PST).
To make a transaction:
- For merchants with chip-enabled terminals
- Insert your Chip Card in the chip-enabled terminal, and sign to authorize the transaction.
- For merchants who are not yet equipped with chip enabled terminal
- Swipe and sign your name as usual.
- For phone or online transactions
- No changes – simply provide your credit card number and complete your online transaction as you do today.
The PST joined forces with the EMV Migration Forum to launch GoChipCard.com. The site provides resources in order to aid U.S. consumers and merchants in the transition from magnetic strip payment cards to EMV chips.