By now you have probably heard of EMV chip credit cards. What you may not know is how they protect against fraud and how to use them.
Here are those answers, but first some background.
EMV stands for Europay, MasterCard and Visa, which are the three original companies to develop this security chip standard. In the wake of numerous large-scale data breaches and increasing levels of card user fraud, U.S. card issuers are migrating to this new standard to protect consumers against fraud and identity theft.
How will this chip protect my money?
The new EMV chip credit card offers big protection in a tiny chip. The EMV chip provides an extra line of defense with additional coding for security as well as global acceptance. The magnetic stripes that are swiped on traditional credit cards contain set data that is unchanging. That means everytime that card is swiped the same code is read and approved to make a purchase. This allows for fraud becasue that reusable code can be replicated over and over to make fraudulent purchases.
The EMV chip cards generate a different code everytime they are used. So even if that unique purchase code is picked up by a counterfeiter, that code is irrelevant and not usable for any future purchases.
When will I receive my EMV chip card?
FFCU Visa Credit Card holders are beginning to receive their updated EMV chip cards in the mail. We are currently issuing new cards as your old card expires. If you would like to receive one sooner, we can issue upon request.
If you have an EMV chip card, many stores will require you to insert the chip instead of swiping your card to pay. If you are having difficulty, a sales associate should be able to walk you through the process.
How do I use my EMV chip card?
Paying at a chip enabled terminal:
1. Insert the chip end of your card into the terminal, facing up.
2. Keep your card in the terminal throughout the transaction and follow the prompts on the screen.
3. Remove your card when prompted and take your receipt. You may need to sign for your purchase.
• Once you receive your new card, it is important to activate right away. When you do this, be sure to destroy and dispose of your old card.
• Everytime you use your card at a chip-enabled terminal, the embedded chip generates a unique transaction code. This prevents stolen data from being fraudulently used.
• Not all merchants are currently accepting the EMV chip. However, these cards can be used both ways, by sliding the card or inserting into the chip reader terminal.
• Approximately 120 million EMV credit cards have already been issued and that number is projected to reach nearly 600 million by the end of 2015, according to Smart Card Alliance estimates.