Have You Received Your EMV Credit Card?
Hopefully by now you have received your new chip-enabled credit card. Because of the number consumer data breaches, credit card companies has decided to step up security and adopt a new security standard.
The magnetic strips and signature system that have been used up to now by major card issuers have proven to provide very little security, so several years ago Europay, MasterCard and Visa teamed up to develop a new system that allows cards to that provide improved security.
If you notice that your new card still has the old style magnetic strip don’t worry. You can still use it at all your favorite places. The major difference is that starting in October, 2015 if the merchant does not use the chip and pin system to authenticate your transaction and your card is used to commit fraud, the credit card company will hold the merchant responsible.
This does not affect you as a consumer in terms of liability, but it does mean that merchants will have to be more careful about the transactions that they allow. For example, they may ask for ID when you make a purchase if they suspect that the card may not be yours.
The new cards represent a leap in technology in terms of security. Whereas magnetic cards only sent the credit card number and expiration date, the new technology uses cryptography to verify that it is valid. This means the transaction may take a few seconds longer than usual so complete, but that should be a small price to pay for the extra security they offer.
They have been the standard for decades around the world, but America is finally getting on board to stem the flood of fraud that plagues the current system. The new system works very similarly, but instead of swiping your card, you will insert your card into a slot. This allows your card to communicate with your bank in a secure connection. Even though you have to enter your pin number, most retailers will still require you to sign the receipt for the first few months.
Just because smart chips are more secure, that does not mean that they are fraud-proof. It is still important to check your credit score regularly so make sure that someone hasn’t requested credit in your name and monitor your credit card accounts for unusual transactions.
Having a tool such as PocketGuard can help you detect fraud early and keep your identity safe.
Featured image credit: iSTOCK