Today everyone is moving to chip and pin cards and almost each and every card used is chip and pin card but it is important to know how these cards work and what exactly the features of EMV chip are and pin cards and what is the security level of using these cards. Here is FinanceShed with everything you need to know about Chip and Pin cards.
What Are The Chip And PIN Credit Cards?
The chip and pin credit cards are the new versions of the cards which were once used to be the magnetic stripe cards. These cards work on the basis of the EMV chip that is inserted into it and for the security purpose, the pin is provided to the cardholder.
How To Transact With Chip And PIN Cards?
When the transaction is to be carried out then, as like as the older cards, you need to apply both the securities i.e. inserting card as well as entering the pin while making a payment. When you transact with the card you will be able to pay directly from the bank account with credit or debit cards.
Many a time it is seen that when you try to use the card, you will be asked to give the signature or pin. You can ask the cashier to process the transaction as credit and request not to provide pin. You can process the payment though you do not intend to provide the pin; there will be a reduction in the charges imposed on the merchant when they need to pay the taxes and charges on the transaction carried on by the card at the store.
It is seen that people think that transactions that are carried on with the pin are much secure than the transaction carried on as credit with the signature, as many merchants don’t even verify the signature and also it will be easy to forge the signature of a person.
How Secure It Is To Use EMV Chip And PIN Cards?
The EMV chip cards are comparatively more secured than the old used magnetic chip cards, as here there will be new unique number generated every time you access through the card, and this number can be just used once and there will be no use of this unique number again ever, so there will be less threat of malpractices in the area of security.
Earlier there were threats that your data will be stored by the store or any person when you swipe the card at the time of payment, people used to use this data to do fraudulent activities also there was misuse of the data that was stolen from your cards, but as now in the new cards there will be less possibility of fraud as if the storekeeper or person at gas station tries to steal your information then also he will not be able to get your details but he will get the unique number only, so it will be of no use.