Technology has evolved at such a rapid rate that banks and credit card companies are constantly seeking new methods to stay ahead of those seeking to steal their customers’ financial information for criminal activities. The introduction of chip enabled credit and debit cards is a recent implementation designed to reduce fraud and make banking and transactions easier and more convenient.
The switch to chip enabled cards is taking place globally with these cards now being used in North America, Latin America, Australia, Africa, and the Middle East. A chip card which is sometimes referred to as a ‘smart card,’ looks like a regular debit card or credit card except that it contains a tiny computer microchip embedded in the plastic. The microchip is a small computer processor with memory and software applications. The embedded microchip encrypts information, making it more difficult for unauthorized users to access the card’s information. The chip-enabled card can store information securely and has better security features than magnetic stripe cards.
When you use the chip enabled card, you swipe your card and sign to authorize your transaction. There are currently upgrades to payment terminals taking place where one will ‘dip’ the card into the terminal instead of swiping it. The chip card is inserted and left in the terminal for the entire transaction process. Cardholders will follow the instructions located on the terminal screen. For credit card transactions, one will enter a personal identification number instead of signing a sales receipt. You can use your chip card at any retail location or Automated Teller Machine (ATM). If the card reading terminal is chip-enabled, you will be prompted to enter your four-digit PIN. If you use your credit card at a retailer that does not have a chip-reading terminal, the magnetic stripe on your card will be swiped and you will have to sign a receipt.https://www.thecreditrepairblueprint.com/credit-vs-debit-card/
Chip cards are much more convenient and quicker as one can just promptly swipe, sign, and go. When upgrades are made, one will be able to insert the card and go. Chip technology can also prevent a criminal from copying information. Unlike the magnetic stripe, a chip cannot be copied.
Over the next few years, point-of-sale terminals and bank machines will become equipped to accept debit and credit cards that contain chip technology. This means that it is essential that one remembers the PIN number. The shift to chip-enabled card technology is the most recent technological achievement designed to make transactions easier and faster while protecting the cardholder’s personal financial information.
Tested and widely used throughout the world, it is a proven method of a secure transaction. Chip technology is the best feature available to protect payment information and prevent fraud. Chip cards utilize a host of security features and measures that work together to create a multifaceted defense system against perpetrators of fraud.
The chip enabled card has been recognized by experts as the transaction method of the future. Merchants are pleased with this form of payment as it speeds up the transaction process allowing more customers to be served. The use of this technology is the latest action of the financial industry’s to prevent lost and stolen financial information, and to secure electronic payments safely and effectively.
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