Wednesday, December 3, 2014

What Are The Advantage Or Benefits of Chip/PIN Credit and Debit Card?

Chip and PIN is the brand name adopted by the banking industries in the United Kingdom and Ireland for the rollout of the EMV smart cardpayment system for credit, debit and ATM cards. The word "chip" refers to a computer chip embedded in the smartcard; the word PIN refers to a personal identification number that must be supplied by the customer. "Chip and PIN" is also used in a generic sense to mean any EMV smart card technology which relies on an embedded chip and a PIN. A chip card is a debit or credit card with a built-in microchip that provides greater security and convenience. The microchip is encrypted, which means that it is extremely difficult to copy or counterfeit.

What Are The Advantage Or Benefits of Chip/PIN Credit and Debit Card?

What are the benefits of chip technology?

Chip technology, already in wide use around the world, makes a secure payment system even more secure by reducing fraud. Chip cards contain an encrypted microchip which is very difficult to counterfeit, and cardholders are required to enter their Personal Identification Number (PIN) for all chip card transactions. Chip card transactions also provide enhanced security because your card never leaves your sight.

Chip and PIN cards are not foolproof; several vulnerabilities have been found and demonstrated, and there have been large-scale instances of fraudulentexploitation. In many cases banks have been reluctant to accept that their systems could be at fault and have refused to refund victims of what is arguably fraud, although legislation introduced in November 2009 has improved victims' rights and put the onus on the banks to prove negligence or fraud by the cardholder. 

What Are The Advantage Or Benefits of Chip/PIN Credit and Debit Card?

How is a chip card different from the card you use today?

When you make a transaction at a chip terminal, you insert your chip card into the terminal. Your card stays in the terminal until the transaction is complete. You'll need to use your PIN for ALL purchases at chip terminals, including credit card purchases. Your signature won't be required for credit card purchases. When the transaction is complete, you'll be prompted to remove your card from the chip terminal. Chip cards will continue to have the magnetic stripe on the back of the card. This means that you will still be able to use your chip card at merchants who don't have chip terminals the same way you use them today.

What Are The Advantage Or Benefits of Chip/PIN Credit and Debit Card?

Will the magnetic stripe be removed from chip debit and credit cards?

Chip cards will continue to have a magnetic stripe on the back. This will ensure that chip cards will continue to be accepted in other countries that have not moved to chip technology. Chip terminals will accept both magnetic stripe cards and chip cards for several years to come.

Reference: http://en.wikipedia.org/http://www.bmo.com/

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