As chip and PIN credit cards have grown to become a new normal in banking technology, a good amount of both buzz and misunderstanding about how they work has gone around. However, this is a positive upgrade for consumers when it comes to the safety and security of your money, and a step forward in enhancing fraud protection.
You’ve probably already seen them, as more and more cards have these chips and chip readers are growing more and more common in places where one spends money. Chip and PIN cards, also known as EMV cards, come with a microchip already embedded on it. Your unique identification information is linked to the card within the chip, verifying your PIN and eliminating the need to sign for purchases.
When it comes to chip and PIN credit cards, there are three significant advantages they have over traditional chipless credit cards.
- Thanks to the embedded microchip, chip and PIN credit cards are far more expensive to steal and replicate, making it harder for fraudsters to commit identity theft. Traditional magnetic strip credit cards make it easier for thieves to pull up your personal information and send it to be replicated. However, it’s not possible to scan a microchip remotely, especially one with the software needed to sync with the card reader to approve each transaction.
- Chip and PIN transaction technology is more sophisticated and more difficult to defraud. Traditional magnetic strip card transactions are relatively basic; the card reader scans the magnetic strip, confirms that there are available funds, and authorizes the transaction. Chip and PIN cards easily sync up to the card reader and payment network in real time and and create a unique transaction number, and if the transaction fails, perhaps due to a fraudulent card, the purchase won’t be completed.
- Chip and PIN cards help to mitigate the damage from data breaches at retailers and with third parties. These cards may not be able to fully protect your data if a hacker should breach the security systems in place, but the multiple layers in the transaction process, such as the chip’s PIN verification and the unique transaction number, make it far more tricky for fraudsters to use your stolen data.
When it comes to your financial security, Polam FCU is dedicated to adopting new technology that will keep your identity safe and your money protected. With chip and PIN credit cards, you can shop at ease knowing that this groundbreaking technology in the world of fraud protection will keep you secure.