Have You Received Your EMV Credit Card?

Hopefully by now you have received your new chip-enabled credit card. Because of the number of consumer data breaches, credit card companies have decided to step up US credit card security and adopt a new security standard.

What Is an EMV Chip Card?

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 provide improved security.

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The October 2015 Liability Shift

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.

How to Use Your New Chip Card

The new cards represent a leap in technology in terms of security. Whereas magnetic cards only send 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 to 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.

What about tap-to-pay?

These days, you may not need to insert your card at all. Most new EMV cards also support contactless payment — just hold or tap the card near the reader instead of inserting it. Contactless payments use the same chip-based cryptography as inserted transactions, so they’re just as secure, and they’re now the fastest-growing way to pay in person. If your card has a wifi-symbol-like icon on the front, it’s contactless-enabled.

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 using credit score apps so make sure that someone hasn’t requested credit in your name and monitor your credit card accounts for unusual transactions as part of protecting yourself from being hacked.

Having a tool such as PocketGuard can help you detect fraud early and keep your identity safe.

FAQ

Does my card still work if it only has a magnetic stripe?

Yes. Magnetic-stripe-only cards still work almost everywhere in the U.S., though you may occasionally be asked for ID if a merchant suspects fraud.

Do I need a PIN for my EMV credit card? Usually not for U.S. credit cards — most use chip-and-signature. Debit cards, and credit cards used outside the U.S., typically do require a PIN.

Is tap-to-pay as secure as inserting my chip?

Yes. Contactless payments use the same cryptographic verification as chip transactions inserted into a reader.

Am I liable if my chip card is used fraudulently?

No – the October 2015 liability shift moved fraud liability to whichever party (the merchant or the issuer) didn’t support chip technology. As a consumer, your liability protections haven’t changed.