Most people do not give a thought to how a debit card works; they swipe cards, enter the PIN, and head to their home with stuff. However, the debit card process begins to change in the last quarter of 2015, when banks and other financial institutions introduced the new chip debit cards.
We are talking about Visa cards and MasterCard, which look like the ones people have used for many years. These cards contain the same aesthetics- logos, numbers, security number on the backside of the card, and the magnetic strip. So what is the difference?
Visa cards and MasterCard include a small computer chip embedded in the front side of the card, commonly known as EMV chip. It is a metallic microchip that allows the card to proceeds transactions with point-of-sale terminals or ATM devices installed in different places.
Why Has This Little Chip Become Popular?
It might surprise the readers, but the traditional magnetic strip that cards have was a 50-year old technology. The strip stores the security code, account number, name, and expiration date of the card. In case someone tries to steal the card or swipe it through a cash machine, robbers can use the stored information for illegal purposes.
EMV-embedded cards came around in Europe in 1944, created to combat the high rates of counterfeiting and fraud. Stands for Europay/MasterCard/Visa, the EMV is more secure technology as it uses a one-time code for every transaction. It makes these cards more robustly secured, and cybercriminals cannot steal the information without knowing the PIN of the user. The new chip debit cards have helped reduced counterfeit card fraud significantly.
EMV chip cards have almost replaced the magnetic strip cards in the United States. According to a report, the U.S. started integrating new EMV technology has seen a reduction in counterfeits.
Ensures Strong Data Protection
In 2013 during the Christmas shopping days, hackers gained access to the customer’s database and more than 60 billion people’s data, among which they used 40 million card numbers to steal the amount present in their bank account. Due to many similar cases, the country revised its security practices and policies while encouraging the users to replace the outdated swipe-only card readers with the new chip terminals.
Who Is Responsible For Users’ Protection?
After October 2015, the liability for card-present fraud shifted to the party that would be not EMV-compliant. These include- the retailer where the users’ shop, the card issuer place (bank of the cardholder), and the credit card company that backs the bank card. In other words, if a store has not updated its payment technology and cybercriminals hack the users’ information, the bank, store, or the credit card company will be liable for it.
Similarly, online fraud matters a lot when it comes to cardholder’s data protection. While the EMV chips have card numbers printed on them, customers use that number to make purchases online. If a criminal steals their card, they will be able to make fraudulent purchases on customers’ account online. In such a situation, the card issuer backed by Credit Card Company will be liable for the illegal charges.
Generally, the bank that issues the card has the primary responsibility for users’ accounts, and it provides the purchase and fraud protection backed by MasterCard and Visa. It is essential to keep in mind that banks and financial institutions process debit charges that customers make. Business owners who have outdated ATMs can approach to MOBILEMONEY to purchase the latest model, EMV compliant cash machine. They have an extensive collection of ATM models containing unique features.