Many people in America have been asking questions about the new debit card chips. Many other countries have adapted to the new chip system called EMV, which stands for Europay, Mastercard, and Visa. This new nationwide system installs a small computer chip into your little plastic card. They have many important uses! Europay, Mastercard, and Visa have all been striving to increase technological development to tighten security. These companies have worked together to bring this advance and have already introduced it to many developed countries around the world. Many store companies have had security breaches where hackers had access to thousands of customer’s information because of their purchases. Not all retailers are careful with your information! Who doesn’t want to decrease, or even ultimately stop, identity theft from taking place? EMV has your protection in mind.
Not only are the victims of identity theft suffering, but the banks have been as well. Banks have had to spend millions of dollars in order to return the money that was once taken from you while ultimately suffering the loss in your place. It is time for a change, and it is best to adjust the policies and update security. 1 The EMV system has since proven to decrease identity theft in Europe. So why wouldn’t American banks wish to do the same? Let’s end the suffering of fraud and relish in the difference.
In 2015, the EMV chip cards have slowly been working their way into our banks and onto our cards, but do they really help make purchases more secure? Currently! American debit cards have a magnetic strip that has information stored within. This strip contains your name, card expiration date, as well as your card number and bank information. Identity theft comes when a criminal takes the information stored in the magnetic bar and uses it. They make you pay for what you did not ask for. Millions of dollars are taken from innocent and hard working men and women. With the new computer chips, when inserted, there is a single-use code to validate the transaction which makes counterfeiting cards more difficult for criminals. 2 All in all, these nifty chips increase security and protect your hard-earned cash.
There are two ways to use the chip. First is by dipping and the other is by NFC. Dipping is when you insert the card into the chip reader and, unfortunately, it is not as quick as swiping. The computer chip connects with the system validating the unique code to ensure the card is legitimate. Though it is understandable that the time it takes is a little longer than you may want to wait. Never fear, you can also go contactless! Near-field communication, also known as NFC, equipped cards are also making their way into the system. Rather than inserting, you just tap the chip card onto the scanner and the transaction finishes in record time. 3 However, this process is slowly making its way; don’t let yourself get too discouraged. Good things come to those who wait! So don’t be too skeptical about your little chip friend, it’s just trying to make things a little easier on you and stress-free.
Jessica Kane is a professional blogger who focuses on personal finance and other money matters. She currently writes for Checkworks.com, where you can get personal checks and business checks.