Over the last few years, banks are slowly upgrading their banking cards to incorporate the new EMV chip embedded system. EMV is a short hand for the technologically-driven service that is now making all banking cards safer in the future. It has been inspired by Euro pay, MasterCard, and Visa, which have collaborated to create a series of banking cards with a more secure technology for banking transactions.
Birth of the EMV chip banking card due to the banking card fraud epidemic
Several credit, debit, and even ATM cards were being used in plenty of frauds. In this case, the details of the card used to be collected and revealed to buyers, who would purchase this information to make replicate banking cards. By using these replicate cards, one could easily access and make transactions, with funds getting debited directly from the original card owner’s account. In addition to this, frequent data breaches have exposed consumer’s data to the public, which has added fuel to this fire. However, EMV chip any debit, credit or ATM card makes it difficult for such a particular tactic.
How do EMV card works?
EMV cards are embedded with a microprocessor chip that contains the bank account’s information. This chip is read, when the card is dipped into the terminal, tapped against the payment terminal or even when it is waved in front of it. The process of reading this computer chip is different as compared to the traditional card with a magnetic strip, which is read only when the card is swiped through the machine. For criminals who access this data, it is almost difficult to replicate the dynamic transaction code that is generated by the chip making it considerably safer.
Why is this EMV chipped card safer?
In the occasion that the store or restaurant where you used your card has been hacked, the information of the banking card that is stolen cannot be used to make additional purchases or create new banking cards. Each transaction used with this EMV chip credit, debit or ATM card uses a unique authentication code with is a one-time use only. Additionally, these microprocessor chips are virtually impossible to duplicate.
How does the PIN’s come into play?
Apart from the embedded chip, the PIN adds an extra level of safety to the card usage. If a card required it to be accessed with a PIN, a code must be entered after the card is swiped. Without this pin, it wouldn’t work. These PINs are particularly helpful in preventing a lost or stolen credit or debit card from being used. This also works as a better alternative to thwarting fraud, especially when a scribbled “signature” is required on an electronic keypad.