Below are Frequently Asked Questions (FAQ), about the usage and distribution of EMV Chip Card technology.
Chip Card FAQ's
- What is EMV?
- EMV is an abbreviation for Europay, MasterCard and Visa, the three organizations that developed the specifications for the card. EMV chip cards contain a microprocessor that provides enhanced security features not possible with the traditional magnetic stripe cards. These cards may also be referred to as smart cards, chip cards, or a variation of those names.
- What are the benefits of a chip card?
Chip cards are nearly impossible to counterfeit. By switching to chip cards, a common type of card fraud known as “card cloning” should be eliminated. Card cloning occurs when a criminal steals the information from one card and creates a new card to be used for fraudulent purposes. Many times, the owner of the original card will not know their card has been compromised until they notice fraudulent transactions posting to their account.
- How does the chip card work?
With a chip card, the transaction is approved through a series of unique cryptograms generated between the embedded chip in the card and the terminal. Every time the card is used for payment, the chip creates a new code that cannot be used again. This feature makes it far more difficult for an unauthorized user to access your card information or use the data to make additional purchases.
- How will this directly affect me?
There will be a slight difference in how you use your card at checkout. Instead of swiping your card, you will insert it into a slot in the front of the terminal. After a few seconds, the card will be authenticated.
- Will it eliminate all credit or debit card theft?
Unfortunately, it will not. While it will limit certain types of fraud, it will not stop card-not-present fraud. This fraud is the kind that occurs when stolen information is used to make fraudulent online purchases. There is also a firm belief that as card-present fraud drops, card-not-present fraud will rise. It is important that you continue to check your statements each month for any suspicious activity.
- How will I use my card if a merchant does not have an EMV chip card terminal?
You can still swipe your chip card to conduct your transaction, but without the additional security benefits the chip provides.
- I still have an old magnetic stripe credit card. Will it stop working?
Most point-of-sale terminals can accept both magnetic stripe and chip cards, so you can continue to use your existing card.
- When did the chip card technology go into effect?
New rules took effect on October 1, 2015, to encourage banks and merchants to update all cards and equipment with EMV capabilities. This change does not affect your personal fraud liability. After October 2015, the bank or merchant that is not EMV compliant when accepting a transaction will be financially responsible if credit or debit card fraud occurs.
If you have additional questions, please contact a Customer Care Banker at (405) 360-5369 or firstname.lastname@example.org.