By now you've likely heard about (or even received) the new EMV (Chip) Cards, but do you know what they mean for the future of how you use your credit and debit cards for in-store purchases?
Up until now, the liability and coverage of credit card fraud has been on the shoulders of the credit card companies themselves. However, as of October 1, 2015, the liability for most in-store card fraud will shift to the business or their processing company, whichever is the least EMV-compliant in the transaction, so you should expect to see the presence of chip-enabled card terminals (where you currently swipe your card) skyrocketing in the coming months. Read on to learn all about what the cards are, how they work and the benefits of the new technology.
How Does the Switch to EMV (Chip) Technology Affect Me?
As businesses adopt chip technology throughout the coming months, there are a few important things for you (the cardholder) to keep in mind:
- Larger companies and businesses will be among the first to deploy chip-activated terminals, with more businesses deploying over the next few years
- You can still swipe your chip-enabled card using the magnetic stripe on the back of the card at merchants who haven’t yet updated their terminals
- When you swipe your chip-enabled card at a chip-activated terminal, the terminal will prompt you to insert/"dip" the card into the chip slot instead
- Use your card for payment over-the-phone or online just like you always have
How Do I Use the New EMV (Chip) Cards?
(Video courtesy of Visa®)
- Insert/"Dip" Your Card
Instead of swiping your card, you will insert it chip first and face up into the terminal.
- Leave Your Card in the Terminal
Your card must remain in the terminal during the entire transaction.
- Sign the Receipt or Enter Your PIN
You (the cardholder) must either sign the receipt or enter your PIN to complete the transaction.
- Remove Your Card
You will then remove the card from the terminal once the purchase is complete.
What is EMV (Chip) Card Technology and What are the Benefits?
Named after the original developers (Europay, MasterCard® and Visa®), the new technology features cards with embedded microprocessor chips that store and protect your card's data with an extra layer of security when used at a chip-activated terminal. This technology and the associated cards may also be referred to as: "chip and PIN" or "chip and signature" within our own information as well as discussions on the products worldwide. Adoption of the technology is soaring based on three primary pillars: Smarter Technology, Added Security and Worldwide Use.
- Smarter Technology
A computer chip securely stores the card data that currently resides on the magnetic stripe. This makes it nearly impossible for criminal reproduction of counterfeit EMV chip cards.The computer chip also enables more secure processing by producing a one-time use code for each transaction, as well as enabling a one-time use code for mobile transactions and support for other security innovations like tokenization.
- Added Security
Because EMV chip cards use cryptograms that are unique to each transaction, stolen chip card data cannot be used to create counterfeit cards. The added layer of security provided by EMV chips makes debit and credit card data much less valuable, decreasing incentive for fraudsters to steal data.
- Worldwide Use
There are approximately 2.4 billion EMV chip cards in circulation and 36.9 million terminals active in 130+ countries worldwide, ensuring you can conveniently use your accounts while traveling anywhere in the world.
If you are a current Seacoast Banking customer, you will receive further information about Seacoast's adoption of EMV (chip) cards throughout 2015 and 2016 as the chip-enabled cards are made available to accountholders when your current card expires or needs to be replaced for any alternative reason.