Understanding What You Have In Your Hand, The Pro/Con
Do you know what is a Microchip Bank Card? Have you ever wondered what the purpose of that tiny metallic microchip on your new bank card is?
As technology advances into the financial industry, more and more financial giants are being forced to provide solutions to protect businesses and their customers through safer electronic payments. The microchip card is one such innovation, first unveiled in the European market in 1996. Chip cards also are known as smart cards, chip-and-PIN cards, chip-and-signature cards, and the Europay, Mastercard, Visa (EMV) card.
Created by Europay, Mastercard and Visa, (EMV), the original microchip card represents a means of combating losses related to bank card fraud. According to Mastercard, EMV cards create dynamic data every time you make a transaction, making it nearly impossible for fraudsters to duplicate or clone your card. This feature provides users with security protection on their everyday purchases
Anyone with a microchip card can be confident in its proven capability to effectively reduce bank card fraud wherever the technology has replaced the magnetic stripe. In a statement on NBC News, October 2016, Stephanie Ericksen, Vice President at Visa, said, “We’ve already seen the positive impact that this chip technology has had on driving down counterfeit fraud at the merchant locations that have moved to it.”
However, not all magnetic stripe cards have been replaced by microchip cards. Although the transition from magnetic-stripe cards to microchip cards started years ago, the drive continues. Hence, some microchip cards have a magnetic stripe to facilitate merchants who have not yet upgraded
How does Microchip Cards Work?
Recently, FIS Global took the time to explain to its customers, ‘How are EMV chip card transactions processed?’ They said, “Microchip cards work with payment acceptance devices that are certified to be compliant with EMV chip-and-PIN standards. During a transaction, the customer inserts the payment card into the terminal. The chip and the card reader communicate to authenticate the transaction. After inserting the card, the customer follows on-screen instructions that further validate the transaction. After cardholder authentication methods are completed, online processing begins.” The card issuer may perform additional authentication and other security and fraud filters before returning approval or decline codes to the EMV terminal.
Microchip Cards VS Non-Chip Cards For The Card Holder
| Microchip-Cards | (Magnetic Stripe Cards) |
| Chip cards are encrypted, so data is not easily accessible.
A unique code is generated with every transaction, which makes every code useless for future transactions. The cardholder remains in possession of the card. |
Bank card data is in plain text on the card, making it easy for hackers to break.
The authentication code required is always the same via the stripe and the cardholder’s PIN . The card has to be submitted during the transaction, creating an opportunity for skimming of personal data. |
Today, not everyone has a microchip card, and not every merchant presently can facilitate microchip technology. However, if you are a cardholder, you may want to consider upgrading your financial security by getting a microchip card. If you are a merchant, branding as a microchip endorsing enterprise will make your customers feel more secure. If you do not own a bank card, when you do, ask about the microchip banking card to help secure every payment experience.
Do you have a microchip bank card? Share with us; we would love to hear from you! Email: info@blackgreenandbold.com