How many times have you found yourself at the check-out counter wanting to pay for your purchases with your debit card and not being sure if the system wants you to swipe your card or insert your chip? Knowing the differences between the two can help make your purchasing process easier.
First and foremost, the goal of the chip is to keep your card safe. Although there is no such thing as a 100% secure technology, the chip is a significant upgrade from the traditional magnetic stripe on your card. Plus, most merchants offer chip card readers now. That is why we recommend opting to use the chip feature on your card.
What are the main differences between the Magnetic Stripe and the EMV Chip on your card?
The main difference between the two is the level of security each provides. Magnetic stripes have your card information exposed to any card reader — they are more susceptible to fraud due to the ease of intercepting and replicating your information for future fraudulent transactions. EMV chip technology has been proven to reduce fraud by keeping your information safer with a more complex encryption to store your card information.
For members, the biggest difference when making purchases using the chip feature versus the magnetic stripe on your card is in how they are used. With a chip card you insert your card into the card reader and leave it inserted while the transaction is completed. With the magnetic stripe on your card you do a one-time swipe and follow the instructions on the card reader.
It may be habit to swipe your card and if you do, you might get an error message if using a chip card. If so, then try inserting the chip in and waiting for the transaction to be authorized and processed – you may be prompted to enter your pin or signature in order to complete the transaction.
It’s recommended that you use the chip card reader. By default, most merchants are transitioning or have already transitioned to a chip card reader. The added security that the EMV chip provides to help prevent fraud is far superior than simply using the magnetic strip on your card and it is less likely to lead to fraudulent activities on your account.
While it may feel like paying with the EMV chip feature on your card takes a longer time to process the transaction, by using the chip you reduce the risk of being vulnerable to falling victim to card skimmers. Card skimmers are devices that are illegally connected to common card readers in your everyday gas stations, grocery stores, ATMs and merchants that are used to steal and copy your card information. Due to the encryption on the EMV, it is much harder for identity thefts to duplicate your card information when you pay with your chip feature.
What to do if I suspect my card has been affected by fraud?
Combatting card fraud is the reason that card networks initiated the shift to EMV chip technology and Visa reports thatcounterfeit card fraud has decreased 76 percentfor merchants who have made the switch to chip card technology. However, it is not completely fraud proof, so if you suspect that your Members Choice Debit Card has been compromised or if you see suspicious activity on your account, immediately report it to Visa at 1.877.703.5024 or visit www.mccu.com/access/card-disputes-and-fraud for more information.
I'm well-versed in payment technologies and their security measures. My expertise stems from a deep understanding of various payment systems, including the differences between magnetic stripe and EMV chip card technologies, their encryption methods, and their impact on security.
The article you mentioned sheds light on an essential aspect of payment security: the transition from magnetic stripe cards to EMV chip cards. The magnetic stripe, a decades-old technology, stores static data that's easily skimmed and replicated, making it more susceptible to fraud. On the other hand, EMV (Europay, Mastercard, and Visa) chip cards use dynamic data and advanced encryption, significantly reducing the risk of unauthorized access and counterfeit fraud.
EMV chip technology revolutionizes payment security by requiring the card to be inserted into a reader for the duration of the transaction, unlike the magnetic stripe's single swipe. This insertion allows for complex encryption processes, making it harder for fraudsters to duplicate card information.
Choosing to use the EMV chip feature over the magnetic stripe is strongly recommended due to the heightened security it offers. While the chip transaction might take slightly longer, it drastically reduces vulnerability to card skimmers, those nefarious devices used to steal card information.
The transition to EMV chip technology has indeed shown a decline in counterfeit card fraud, as indicated by Visa's report of a 76% decrease for merchants using chip card technology. However, it's crucial to remain vigilant. If you suspect fraudulent activity or compromise of your debit card, immediate reporting to the card issuer or relevant authority is paramount to mitigate potential losses.
In summary, opting for the EMV chip feature significantly enhances security and minimizes the risk of falling victim to fraudulent activities, especially in comparison to the outdated magnetic stripe technology. The shift to EMV chip cards signifies a substantial step toward safeguarding sensitive financial information during transactions.
Some merchants still have customers swipe their magnetic strips instead of inserting their chips. This eliminates the security benefits of the chip, but you do not need to worry. As a consumer, you still receive the full fraud protection of your credit card whether you use the magnetic strip or the EMV chip.
Contactless credit cards can also be EMV chip cards. However, contactless payments tend to be safer since the credit or debit card itself never makes contact with the payment terminal.
In comparison, tapping to pay using a contactless chip can take only seconds. Contactless payments are much faster than inserting a credit card and safer than paying with cash or by means of magnetic stripe swipe.
You can't duplicate a chip in another card for this reason, so even if a fraudster managed to get all the information out of it it can't be used in another card. It's entirely secure. The swipe strip is just a piece of magnetic tape.
EMV chip cards are much more secure than magnetic stripe cards. While magnetic chips retain static information, EMV chips store a digital code that changes with every purchase. This one-time digital signature is hard to copy and makes it much more difficult for fraudsters to steal data from a chip card.
Swipe cards store a digital string of numbers held in the magnetic strip on your card. Traditional swipe card information is relatively easy for criminals to steal and subsequently transfer onto a new, fraudulent credit card. Chip cards (EMV cards) use encrypted codes to keep this information secure.
Contactless technology means you can leave the card at home
This makes it much harder to steal a user's payment information since: The smartphone or device must be unlocked first. The correct mobile payment app must be open. Two-factor authentication is enabled.
This makes it virtually impossible for someone to skim your card information in passing. However, some skimming devices can intercept contactless transactions at very close range, so vigilance is still key.
Tap to pay can be safer than paying with a credit card chip or debit PIN. When you insert your chip or enter your information into a credit card reader, that information can be copied or hacked. With tap to pay, your contactless debit card or credit card never makes physical contact with the card reader.
A long tap is when you touch and hold your finger on the same spot. This gesture is also called tap and hold and can be used to activate special menus. A swipe is is when you touch and slide your finger across the screen. You can swipe quickly or slowly, depending on what you're doing on your phone or tablet.
Greater accuracy: Swiping gestures can be more precise and accurate than tapping, reducing the chances of errors. More space-efficient: Swiping gestures allow for more actions to be performed within a smaller space, making better use of the limited screen real estate on many devices.
Missing or late credit card payments can have a big impact on your credit score and fees. Credit-scoring companies like FICO® and VantageScore® weigh your payment history as an important factor in your credit score.
However, if in a six-month period a person were to commit credit card fraud two or more times, or obtain money, goods, services, etc. valued at greater than $100, they would be committing a third-degree felony punishable by up to a five-year prison sentence and $5,000 fine.
There's no definitive rule for how often you need to use your credit card in order to build credit. Some credit card issuers will close your credit card account if it goes unused for a certain period of months. The specifics depend on the credit card issuer, but the range is generally between 12 and 24 months.
Apple Pay is safer than using a physical credit, debit, or prepaid card. Face ID, Touch ID, or your passcode is required for purchases on your iPhone, Apple Watch, Mac, or iPad. Your card number and identity aren't shared with merchants, and your actual card numbers aren't stored on your device or on Apple servers.
Swipe card access is cheaper than other technologies. The technology to store data in magnetic cards can be used in hundreds of cards at a low cost. Magnetic cards are interoperable.
What are the disadvantages of card swipe machines? The disadvantages of using a card swipe machine include higher fees, security risks like skimming or hacking, and the likelihood of fraudulent transactions.
Use the Wallet app to securely keep your credit and debit cards for Apple Pay, driver's license or state ID, transit cards, event tickets, keys, and more—in one convenient place for easy access.
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