So what’s the big fuss about this little chip? With one time use codes, these metallic chips are being implemented by banks to prevent credit card fraud.
If you haven’t noticed already, credit cards have all been looking a little different lately. I’m talking about that little metallic chip in the corner of your card. Doesn’t seem like a big difference right? Well looking beyond the plastic, the internal security changes that this chip holds are actually a game changer. Known as EMV chips, these new cards are changing how payment transactions are made with the use of one-time codes instead of magnetic stripes. Revolutionizing security against credit fraud, these little squares are quickly becoming the global standard for all credit and debit card transactions.
According to sources by Aite Group, its been reported that credit card fraud rates have increased now to 10 cents per every $100 dollar transaction since 2007.
With statistics like that its no wonder that, “By the end of 2015 70% of U.S. credit cards and 41% of U.S. debit cards will be EMV enabled” due to rising counterfeit fraud card transactions rates.”
So why are so many counterfeit transactions being made? Well that little black magnetic stripe that you’ve seen on your card has been around on our credit and debit cards probably longer than most of us have been around. So naturally, this old school method of payment isn’t the most efficient or up to date. That is why with credit fraud higher than ever, banks are all adopting the EMV chips rather than traditional magnetic stripes. But what makes the chip so different?
Static Data VS Dynamic Data
Card payments these days really come down to two things, card reading and the actual transactions. EMV chips are more secure than traditional magnetic cards because when you swipe that card, a magnetic strip is ultimately unchanging data. Static data is fraudulent gold for counterfeiters. If someone were to copy that magnetic stripe, they would be able to replicate that data as many times as they see fit. While an EMV chip card creates a unique transaction code every time, so that it cannot be used again. This means that even if a hacker were to steal chip information from a sales transaction, that information will be irrelevant during your next transaction.
With chip enabled technology, banks and institutions will greatly reduce the risk of security so that you will be able to make payments with a secure peace of mind. At Affant, we make it a point to share only the most useful and up to date technological information. As experts in network security, we provide 24/7 monitoring and reporting to protect our client’s personal information. So even though you won’t see the difference when you swipe, now you know that you can trust the difference.