Even if you don’t have one yet, you’ve probably seen the new credit cards that have a microchip on the front. These chips, officially called EMV Smart Chips (The EMV means “Europay, MasterCard and Visa”), provide users with a better layer of security than traditional credit card magnetic strips. They’re more secure because the chip and credit card reader talk to each other using encrypted data – old cards simply gave the data without protection. This makes chipped cards far more difficult for fraudsters to clone and they’re certainly a welcome technology for anyone looking to protect their identity and financial information.
It’s time to retire your swiping motion and get caught up on the insert – the credit card microchip EMV conversion mandate is upon us come Thursday, September 30.
If you do your banking with a major financial institution like Bank of America, Wells Fargo or Chase, there is a pretty good chance that you already have a microchip on your credit or debit card. Not only that, but you may have used the technology already while shopping at a major retail chain (Wal-Mart is where I first encountered one). Continue Reading at About Bill Pay
But unlike a simple magnetic strip, the chip interacts with the machine that is reading it, in order to encrypt the data and authenticate it more securely. In effect, the credit card and its reader have an encrypted conversation in order to ensure the credit card is valid, while a simple (that is, “dumb”) magnetic stripe merely recites your credit card number and expiration date to any machine that can read it. Continue Reading at Credit.com