Today, many credit cards are equipped with chip technology which requires you to "dip" your card into a slot. But beyond the need to not slip, do you know how smart cards are different from traditional credit cards?
Otherwise, the Q & A following will give you an overview of what you need to know about smart cards.
What exactly are smart cards?
smart cards go by many names, including smart cards, smart chip cards, smart cards smart cards and EMV (Europay, MasterCard and Visa) cards for to name a few. What they all have in common is a small metal square, or chip, on them. Smart cards differ from traditional cards tape significantly.
magnetic stripe cards contain sensitive information about you. If someone steals that card, the thief can take advantage of data stored in the card to make fraudulent purchases because the data does not change.
In contrast, smart cards create unique transaction codes every time they are used to make a purchase. Each code can only be used once. So if a thief tried to use this data again, they would be out of luck.
Why more cards with chips?
Thanks to the unique chip transaction codes can generate, smart cards are much less prone to identity theft than to traditional magnetic stripe cards. And that's good news from identity theft and large data breaches are common crimes. It is estimated that by 2015, the cost of credit card fraud in the United States alone will reach $ 10 billion. credit card issuers in the United States are finally catching up with Europe, Canada and the Pacific.
How can I use a smart card?
The most common way is to insert into a slot credit card reader. The player will then tell you when you can remove the card. It usually takes more time to process a payment this way than it does to simply slide a credit card.
A less common way to use smart card is read without contact map. With this method, a smart card that is typed on a scanner is all it takes to make a purchase. Expect more of these types of scanners to appear as smart cards are more widely adopted.
Can I use a smart card scanner if a retailer does not have the special slot?
The most likely time, yes. The first smart card mailed in the United States have both chip and magnetic magnetic capabilities let consumers and traders adapt to change. While most major retailers already have national players cards with capacities processing chip, smaller stores, mom-and-pop are not often. Overall, it is estimated that only 44 percent of merchants will have chip card machines at the end of 2015.
When is the smart cards completely replace magnetic swipe cards?
It may take some time. While both MasterCard and VISA established October 1, 2015, the deadline for passing magnetic magnetic cards to smart cards, many cardholders have not yet received their new smart cards. This is especially common for people whose cards are issued by smaller banks.
Debit cards, meanwhile, are lagging behind credit cards when it comes to conversion to chip technology. It is estimated that only 25 percent of US debit cards have chips by the end of 2015.
Other countries accept chip cards?
Many do. In fact, the US is one of the last countries to widely adopt smart cards. Europe has migrated to chip cards there for years to help combat credit card fraud. As a result of this switch, many traders in these countries are reluctant to accept magnetic swipe cards.
That said, there are still many other countries around the world that are not equipped to accept chip cards.
is responsible for fraudulent charges made on a smart card?
generally a fraudulent charge will be the responsibility of the payment processor or bank that issued the card. This is similar to how the liability for fraudulent charges from magnetic stripe cards work.
On October 1, 2015, many major issuers of credit cards began shifting the responsibility for fraudulent charges credit card companies or banks issuing the merchant if the merchant does not card reader that can read smart cards. This initiative has encouraged traders to invest in machines that accept smart cards.
Although fraud will become more rare with smart cards, it will not disappear. And some of the biggest expenses are not fraudulent charges, but the time and money it takes to restore your identity.
recovery coverageidentity can cover these kinds of costs and more-for as little as $ 20 per year for basic coverage. Learn more about this important and affordable coverage by talking to a professional insurance as an Erie Insurance agent in your community.
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